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<SEC-DOCUMENT>0000900092-09-001091.txt : 20091105
<SEC-HEADER>0000900092-09-001091.hdr.sgml : 20091105
<ACCEPTANCE-DATETIME>20091105153959
ACCESSION NUMBER:		0000900092-09-001091
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20090831
FILED AS OF DATE:		20091105
DATE AS OF CHANGE:		20091105
EFFECTIVENESS DATE:		20091105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK VIRGINIA MUNICIPAL BOND TRUST
		CENTRAL INDEX KEY:			0001169034
		IRS NUMBER:				383645607
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21053
		FILM NUMBER:		091161060

	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
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>bhv.htm
<DESCRIPTION>BHV
<TEXT>

<HTML>
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   <TITLE>bhv.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<P align="center">
<FONT face="ArialMT,Arial,Helvetica,sans-serif">UNITEDSTATES</FONT><BR>
<FONT face="ArialMT,Arial,Helvetica,sans-serif">SECURITIESANDEXCHANGECOMMISSION</FONT><BR>
<FONT face="ArialMT,Arial,Helvetica,sans-serif">Washington,D.C.20549</FONT><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FORM N-CSR</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">INVESTMENT COMPANIES</FONT></B></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Company Act file number 811-21053</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name of Fund: BlackRock Virginia Municipal Bond Trust (BHV)</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Virginia Municipal Bond Trust, 40 East 52</FONT><SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">nd </FONT></SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Street, New York, NY 10022.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Registrant&#146;s telephone number, including area code: (800) 882-0052, Option 4</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of fiscal year end: 08/31/2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of reporting period: 08/31/2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 1 &#150; Report to Stockholders</FONT></P>

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<IMG src="brmuni11ar0809x1x1.jpg" border=0>
<BR>
<P align="left">
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS</FONT></P>
<P align="left">
<FONT size=5 face="DIN-Regular,Arial,Helvetica,sans-serif">Annual Report</FONT></P>
<P align="left">
<FONT face="DIN-Regular,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust (BZA)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II (BCL)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT><BR>
<BR>
<FONT color="#0035c4" size=4 face="DIN-Regular,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Education Tax-Exempt Trust (MHE)</FONT></P>
<P align="left">
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">NOT FDIC INSURED</FONT><BR>
<BR>
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">MAY LOSE VALUE</FONT><BR>
<BR>
<FONT size=1 face="DIN-Light,Arial,Helvetica,sans-serif">NO BANK GUARANTEE</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=73%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Table of Contents</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=right style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Page</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dear Shareholder</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Annual Report:</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust Summaries</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Derivative Financial Instruments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Statements:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schedules of Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Operations</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Notes to Financial Statements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">71</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Important Tax Information</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plans</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officers and Trustees</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">79</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additional Information</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">2 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Dear Shareholder</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The past 12 months reveal two distinct economic and market backdrops &#151; one of extreme investor pessimism and decided weakness, and another of</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers,</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial sys-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tem and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">economic data and upside surprises in corporate earnings.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebal-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging mar-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">kets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and dis-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slow-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">down in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In par-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ticular, August marked the municipal market&#146;s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lost during 2008.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market, while less-risky fixed income investments posted stable, modest returns.</FONT></P>
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<TR>
     <TD width=62%></TD>
     <TD width=24%></TD>
     <TD width=12%></TD></TR>
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	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Returns as of August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">6-month</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">12-month</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US equities (S&amp;P 500 Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40.52%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18.25)%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Small cap US equities (Russell 2000 Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48.25</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21.29)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">International equities (MSCI Europe, Australasia, Far East Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53.47</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14.95)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.61)</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.77</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Taxable fixed income (Barclays Capital US Aggregate Bond Index)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.95</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.94</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax-exempt fixed income (Barclays Capital Municipal Bond Index)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.61</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.67</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36.31</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* Formerly a Merrill Lynch Index.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur-</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bulence, as ever, BlackRock&#146;s full resources are dedicated to the management of our clients&#146; assets. We invite you to visit </FONT><FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">www.blackrock.com/funds </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for our</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">continuing to serve you in the months and years ahead.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sincerely,</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rob Kapito</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President, BlackRock Advisors, LLC</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Announcement to Shareholders</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (&#147;Barclays&#148;) in which Barclays&#146; Board of Directors had</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accepted BlackRock&#146;s offer to acquire Barclays Global Investors (&#147;BGI&#148;). At a special meeting held on August 6, 2009, BlackRock&#146;s proposed purchase
of</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BGI was approved by an overwhelming majority of Barclays&#146; voting shareholders, an important step toward closing the transaction. The combination of</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.</FONT></P>
<P align="left">
<FONT color="#4d4d4d" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">THIS PAGE NOT PART OF YOUR FUND REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">3</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust (BCK) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide high
current income exempt from regular federal income taxes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and California income taxes. The Trust will invest at least 80% of its managed assets in municipal obligations that are insured as to the timely payment of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">both principal and interest.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 6.34% based on market price and 4.76% based on net asset value (&#147;NAV&#148;). For the same</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.16% on a market price basis and 2.91%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on a NAV basis. All returns reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which narrowed during the period, accounts for the difference</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">between performance based on price and performance based on NAV. The range of states included in the insured Lipper category makes return compar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">isons inherently difficult. The Trust benefited from the outperformance of California credits, which occurred despite the negative fundamental backdrop</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">involving the state&#146;s budget finances. An underweight in lower-rated credits was also additive, as monoline insurance value continued to deteriorate, with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">more emphasis placed on underlying ratings. In addition, the lack of exposure to alternative minimum tax paper was beneficial as spreads on these secu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rities remained wide. A competitive level of income accrual from a relatively high average coupon structure, together with extremely beneficial short-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">borrowing costs, permitted a dividend increase in June 2009. Exposure to zero-coupon securities detracted, as spreads remained wide compared to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">couponed bonds.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=43%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on New York Stock Exchange (&#147;NYSE&#148;)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;12.94)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.12%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.42%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.066</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.792</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past performance</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of
35%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to
change.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Auction Market Preferred Shares (&#147;Preferred Shares&#148;)
and tender option bond trusts (&#147;TOBs&#148;) as a percentage of total managed assets,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For
a</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=7>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.94</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.95</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.08)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.15</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.86</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.08</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.56)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.26</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.43</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the Trust&#146;s sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=28%></TD>
     <TD width=13%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#146;s&#148;) or
Moody&#146;s Investors</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Service (&#147;Moody&#146;s&#148;) ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">4 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_7"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust (BZA) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide current income
exempt from regular federal income taxes and California</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade quality,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or determined by its investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch Ratings (&#147;Fitch&#148;) or that are unrated but judged to be of
comparable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quality by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 0.07% based on market price and 4.57% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper California Municipal Debt Funds category posted an average return of 1.02% on a market price basis and (2.15)% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which widened during the period, accounts for the difference between performance based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price and performance based on NAV. Overall performance benefited from spread tightening in certain sectors specifically held in the fund, such as corpo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate-backed securities, some land-based community facilities districts and paper subject to the alternative minimum tax. A healthy accrual and beneficial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">short-term borrowing costs permitted a dividend increase in June 2009. Exposure to zero-coupon securities detracted, as spreads remained wide compared</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to couponed bonds. The Trust ended the period with cash and short-term investments of 7% of net assets, which was not a factor in performance. Cash</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reserves in closed-end products are typically kept at low percentages to maximize leverage benefits. These reserves were invested in higher-yielding cash</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equivalent alternatives when available.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;13.55)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.82%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.49%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.924</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed assets, which is
the total assets of the Trust, including any assets attributa-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ble to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Benefits and Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.55</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.48</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6.42)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.57</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.66</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.52</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.85</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.22)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15.05</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.24</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the Trust&#146;s sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=28%></TD>
     <TD width=13%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&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 align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">5</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II (BCL) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide high
current income exempt from regular federal income taxes and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch or that are unrated but judged to be of compa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rable quality by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 7.39% based on market price and 4.84% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper California Municipal Debt Funds category posted an average return of 1.02% on a market price basis and (2.15)% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which narrowed during the period, accounts for the difference between performance based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price and performance based on NAV. Overall performance benefited from spread tightening in certain sectors specifically held in the fund, such as corpo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate-backed securities, some land-based community facilities districts and securities subject to the alternative minimum tax. A healthy accrual and bene-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ficial short-term borrowing costs permitted a dividend increase in June 2009. Exposure to zero-coupon securities detracted, as spreads remained wide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">compared to couponed bonds. The Trust ended the period with cash and short-term investments of 6% of net assets, which was not a factor in performance.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash reserves in closed-end products are typically kept at low percentages to maximize leverage benefits. These reserves were invested in higher-yielding</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cash equivalent alternatives when available.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
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     <TD width=12%></TD>
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     <TD width=9%></TD></TR>
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	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE Amex</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">July 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;12.75)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.78%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.8940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past performance</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of
35%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to
change.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed
assets, which is the total assets of the Trust, including any assets</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the
Trust,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">please see The Benefits and Risks of Leveraging on page 15.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.75</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.70</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.39%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.00</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6.85</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.75</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.03</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.00)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.20</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.50</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=55%></TD>
     <TD width=26%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=53%></TD>
     <TD width=28%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The investment advisor has deemed certain of these non-rated</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities to be of investment grade quality. As of August 31, 2009</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and 2008, the market value of these securities was &#36;5,666,520</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">representing 3% and &#36;1,173,229 representing 1%, respectively,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Trust&#146;s long-term investments.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">6 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_9"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust (BZM) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide current income
exempt from regular federal income taxes and Maryland</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch or that are unrated but judged to be of compara-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ble quality by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 3.53% based on market price and 1.52% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper Other States Municipal Debt Funds category posted an average return of 8.34% on a market price basis and 4.53% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s premium to NAV, which widened during the period, accounts for the difference between performance based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price and performance based on NAV. The Trust&#146;s heavy concentrations in lower-rated and longer-dated securities enhanced performance in recent months</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield, as we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">focused on maximizing coupon structure and minimizing cash levels. On the other hand, the Trust suffered from poor positioning during the fourth quarter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of 2008. Specifically, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater sensitivity to both factors than many of its Lipper peers.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE Amex</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;15.35)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.31%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.17%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0679</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.8148</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed assets, which is
the total assets of the Trust, including any assets attribu-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">table to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15.35</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15.75</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.54)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16.65</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.70</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.81</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.45</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.43)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.63</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.51</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=28%></TD>
     <TD width=13%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&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 align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">7</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_10"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc.</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide
shareholders with current income exempt from federal income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">taxes and New York State and New York City personal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes and New York State and New York City personal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income taxes.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 13.34% based on market price and 5.19% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.16% on a market price basis and 2.91% on a NAV basis. All</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">returns reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which narrowed during the period, accounts for the difference between performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on price and performance based on NAV. The Trust&#146;s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">months as the yield curve flattened and credit spreads tightened. On the other hand, the Trust suffered from poor positioning during the fourth quarter of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008, including underweights in tax-backed and utility bonds, which were among the better performers. At the same time, prices of long-maturity bonds fell</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lipper peers. Performance was also negatively affected by a slightly below-average dividend yield.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=58%></TD>
     <TD width=29%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">September 19, 1997</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;12.89)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.10%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0655</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.7860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A change in the distribution rate was declared on September 1, 2009. The Monthly
Distribution per Common Share was increased to &#36;0.0685. The</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares as a percentage of total managed assets, which is the total
assets of the Trust, including any assets attributable to</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.89</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.35%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.90</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6.50</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.74</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.92</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.29)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.12</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.28</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=32%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The investment advisor has deemed certain of these non-rated</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities to be of investment grade quality. As of August 31, 2009,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market value of these securities was &#36;18,918,142 representing</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3% of the Trust&#146;s long-term investments.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">8 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_11"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide current income
exempt from regular federal income taxes and New Jersey</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gross income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch or that are unrated but judged to be of comparable qual-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ity by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned (1.23)% based on market price and 2.50% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper New Jersey Municipal Debt Funds category posted an average return of 7.49% on a market price basis and 3.66% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s premium to NAV, which narrowed during the period, accounts for the difference between performance based</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on price and performance based on NAV. The Trust&#146;s overweights in longer-dated housing and tax-backed bonds contributed positively to performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">during the period. Conversely, overweight exposure to spread products, such as education, healthcare and corporate-backed bonds, detracted from results</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as these issues underperformed the broader municipal market early in the reporting period.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE Amex</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;13.59)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.67%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0755</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.9060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed assets, which is
the total assets of the Trust, including any assets attribu-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">table to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.59</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.76</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7.93)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;16.00</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.20</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.53</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.16</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.45)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.42</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.32</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=28%></TD>
     <TD width=13%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">9</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_12"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust (BSE) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide high
current income exempt from regular federal income taxes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and New York State and New York City personal income taxes. The Trust will invest at least 80% of its managed assets in municipal obligations that are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">insured as to the timely payment of both principal and interest.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 5.70% based on market price and 3.98% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.16% on a market price basis and 2.91% on a NAV basis. All</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">returns reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which narrowed during the period, accounts for the difference between performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on price and performance based on NAV. The Trust&#146;s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trust suffered from poor positioning during the fourth quarter of 2008, including underweights in tax-backed and utility bonds, which were among the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust exhibited greater sensitivity to both factors than many of its Lipper peers.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=43%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 31, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;13.15)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.98%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0655</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.7860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past performance</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of
35%.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to
change.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left colspan=6>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares as a percentage of total managed assets, which
is the total assets of the Trust, including any assets attributable to</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=6>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Risks of Leveraging on page 15.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.15</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.26</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.83)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.79</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6.90</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.61</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.95</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.44)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.19</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;9.44</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=32%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The investment advisor had deemed certain of these non-rated</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities to be of investment grade quality. As of August 31, 2009,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market value of these securities was &#36;13,920,865 representing</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10% of the Trust&#146;s long-term investments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">10 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_13"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (BQH) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide current income
exempt from regular federal income taxes and New York State</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are investment grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch or that are unrated but judged</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to be of comparable quality by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 4.87% based on market price and 5.97% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper New York Municipal Debt Funds category posted an average return of 4.36% on a market price basis and (0.50)% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which widened during the period, accounts for the difference between performance based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price and performance based on NAV. The Trust&#146;s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent months</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield. On the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other hand, the Trust suffered from poor positioning during the fourth quarter of 2008, including underweights in tax-backed and water &amp; sewer bonds,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which were among the better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its Lipper peers.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;14.32)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.54%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.06%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.078</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.936</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed assets, which is
the total assets of the Trust, including any assets attribu-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">table to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.32</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.62</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.05)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.80</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.01</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.56</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.71</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.02)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.92</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.52</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=28%></TD>
     <TD width=13%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">11</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_14"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II (BFY) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide high
current income exempt from regular federal income taxes and New</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">York State and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bonds that are investment grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch or that are unrated but judged</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to be of comparable quality by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 10.26% based on market price and 5.23% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper New York Municipal Debt Funds category posted an average return of 4.36% on a market price basis and (0.50)% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which narrowed during the period, accounts for the difference between performance based on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price and performance based on NAV. The Trust&#146;s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent months</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield. On the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other hand, the Trust suffered from poor positioning during the fourth quarter of 2008, including an underweight in tax-backed bonds, which were among the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust exhibited greater sensitivity to both factors than many of its Lipper peers.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE Amex</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">July 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;14.00)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0775</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.9300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A change in the distribution rate was declared on September 1, 2009. The Monthly
Distribution per Common Share was increased to &#36;0.0800. The</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares as a percentage of total managed assets, which is the total
assets of the Trust, including any assets attributable to</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.00</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;13.60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.94%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.05</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.53</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.03</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.28</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.75)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14.48</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.81</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=55%></TD>
     <TD width=26%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=53%></TD>
     <TD width=28%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The investment advisor had deemed certain of these non-rated</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities to be of investment grade quality. As of August 31, 2009,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market value of these securities was &#36;6,645,970 representing</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6% of the Trust&#146;s long-term investments.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">12 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust (BHV) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to provide current income
exempt from regular federal income taxes and Virginia per-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sonal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quality, or determined by its investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody&#146;s, S&amp;P or Fitch or that are unrated but judged to be of comparable quality</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by BlackRock.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned (4.16)% based on market price and 6.94% based on NAV. For the same period, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed-end Lipper Other States Municipal Debt Funds category posted an average return of 8.34% on a market price basis and 4.53% on a NAV basis.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All returns reflect reinvestment of dividends. The Trust&#146;s premium to NAV, which narrowed during the period, accounts for the difference between perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance based on price and performance based on NAV. The Trust&#146;s heavy concentrations in lower-rated and longer-dated securities enhanced performance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in recent months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dend yield, as we focused on maximizing coupon structure and minimizing cash levels. On the other hand, the Trust suffered from poor positioning during</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the fourth quarter of 2008. Specifically, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trust exhibited greater sensitivity to both factors than many of its Lipper peers.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
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	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE Amex</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April 30, 2002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;17.50)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.49%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.45%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.08</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.96</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The distribution is not constant and is subject to change.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed assets, which is
the total assets of the Trust, including any assets attribu-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">table to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=10%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17.50</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;19.50</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.26)%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;22.75</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.50</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15.05</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.13%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15.25</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.62</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=26%></TD>
     <TD width=12%></TD>
     <TD width=11%></TD>
     <TD width=32%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County/City/Special District/</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14%</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Utilities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&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 align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The investment advisor has deemed certain of these non-rated</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities to be of investment grade quality. As of August 31, 2008,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the market value of these securities was &#36;2,170,858 representing</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6% of the Trust&#146;s long-term investments.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">13</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Trust Summary </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">as of August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Education Tax-Exempt Trust</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Objective</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Education Tax-Exempt Trust (MHE) (the &#147;Trust&#148;) </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">seeks to
provide shareholders with as high a level of current income exempt from</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">both regular federal income taxes and Massachusetts personal income taxes as is consistent with the preservation of shareholders&#146; capital. The Trust seeks to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">achieve its investment objective by investing primarily in Massachusetts tax-exempt obligations issued on behalf of participating not-for-profit institutions. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust will continue to invest primarily in investment-grade obligations. The Trust is intended to be a long-term investment and not a short-term trading vehicle.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No assurance can be given that the Trust&#146;s investment objective will be achieved.</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Performance</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the 12 months ended August 31, 2009, the Trust returned 13.73% based on market price and 3.29% based on NAV. For the same period, the closed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end Lipper Other States Municipal Debt Funds category posted an average return of 8.34% on a market price basis and 4.53% on a NAV basis. All returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect reinvestment of dividends. The Trust&#146;s discount to NAV, which narrowed during the period, accounts for the difference between performance based</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on price and performance based on NAV. The Trust&#146;s overweight in pre-refunded bonds helped performance early in the reporting period. An overweight in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">longer-dated education and housing bonds also contributed to results. Conversely, overweight exposure to spread products, such as healthcare bonds,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">detracted from performance as these issues underperformed the broader municipal market early in the reporting period. Also hampering results was the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s overweight in Financial Guaranty Insurance Co. and XL Capital Assurance, which underperformed amid continued downgrades of the monoline</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">insurers. The Trust ended the period with cash and short-term investments of 22% of net assets, which detracted mildly from performance as yields on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cash equivalent securities remain at historic lows. Reinvesting cash reserves has remained difficult, as the Trust must have 80% of its assets invested</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in health and education bonds and new-issue supply in Massachusetts was down by approximately 37% versus a year ago.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">views are not intended to be a forecast of future events and are no guarantee of future results.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=12%></TD>
     <TD width=60%></TD>
     <TD width=26%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Information</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Symbol on NYSE Amex</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Initial Offering Date</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">July 23, 1993</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price as of August 31, 2009 (&#36;12.00)</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.90%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Equivalent Yield</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.08%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Monthly Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.059</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Current Annualized Distribution per Common Share</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.708</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Leverage as of August 31, 2009</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. Past performance</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">does not guarantee future results.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax equivalent yield assumes the maximum federal tax rate of 35%.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A change in the distribution rate was declared on September 1, 2009. The Monthly
Distribution per Common Share was increased to &#36;0.062. The</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents Preferred Shares and TOBs as a percentage of total managed assets, which is
the total assets of the Trust, including any assets attribu-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">table to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging on page 15.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The table below summarizes the changes in the Trust&#146;s market price and NAV per share:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=28%></TD>
     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=7%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Change</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market Price</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.00</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11.22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.95%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.07</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;7.18</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net Asset Value</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.19</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.55</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.87)%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12.72</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;9.08</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following unaudited charts show the sector and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=47%></TD>
     <TD width=34%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sector Allocations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">62%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporate</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=53%></TD>
     <TD width=28%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Credit Quality Allocations</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">5</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/09</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">8/31/08</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AAA/Aaa</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AA/Aa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BBB/Baa</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BB/Ba</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Not Rated</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Using the higher of S&amp;P&#146;s or Moody&#146;s ratings.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The investment advisor had deemed certain of these non-rated</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities to be of investment grade quality. As of August 31, 2009</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and 2008, the market value of these securities was &#36;2,117,414</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">representing 5% and &#36;1,139,707 representing 2%, respectively,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Trust&#146;s long-term investments.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">14 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">The Benefits and Risks of Leveraging</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may utilize leverage to seek to enhance the yield and NAV of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their Common Shares. However, these objectives cannot be achieved in all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interest rate environments.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">To leverage, the Trusts issue Preferred Shares, which pay dividends at pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">vailing short-term interest rates, and invest the proceeds in long-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">municipal bonds. In general, the concept of leveraging is based on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">premise that the cost of assets to be obtained from leverage will be based</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on short-term interest rates, which normally will be lower than the income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned by each Trust on its longer-term portfolio investments. To the extent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that the total assets of the Trust (including the assets obtained from lever-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">age) are invested in higher-yielding portfolio investments, the Trust&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders will benefit from the incremental net income.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">To illustrate these concepts, assume a Trust&#146;s Common Shares capitaliza-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion is &#36;100 million and it issues Preferred Shares for an additional &#36;50</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">million, creating a total value of &#36;150 million available for investment in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">long-term municipal bonds. If prevailing short-term interest rates are 3%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and long-term interest rates are 6%, the yield curve has a strongly positive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">slope. In this case, the Trust pays dividends on the &#36;50 million of Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares based on the lower short-term interest rates. At the same time, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities purchased by the Trust with assets received from Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issuance earn the income based on long-term interest rates. In</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">this case, the dividends paid to Preferred Shareholders are significantly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lower than the income earned on the Trust&#146;s long-term investments, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">therefore the Common Shareholders are the beneficiaries of the incremen-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tal net income.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If short-term interest rates rise, narrowing the differential between short-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">term and long-term interest rates, the incremental net income pickup on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Common Shares will be reduced or eliminated completely. Furthermore,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">if prevailing short-term interest rates rise above long-term interest rates of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6%, the yield curve has a negative slope. In this case, the Trust pays divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dends on the higher short-term interest rates whereas the Trust&#146;s total port-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">folio earns income based on lower long-term interest rates.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Furthermore, the value of the Trust&#146;s portfolio investments generally varies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inversely with the direction of long-term interest rates, although other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">factors can influence the value of portfolio investments. In contrast, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">redemption value of the Trust&#146;s Preferred Shares does not fluctuate in rela-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion to interest rates. As a result, changes in interest rates can influence the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s NAV positively or negatively in addition to the impact on Trust per-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">formance from leverage from Preferred Shares discussed above.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may also leverage their assets through the use of tender option</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bond (&#147;TOB&#148;) programs, as described in Note 1 of the Notes to Financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements. TOB investments generally will provide the Trusts with economic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">benefits in periods of declining short-term interest rates, but expose the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts to risks during periods of rising short-term interest rates similar to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">those associated with Preferred Shares issued by the Trusts, as described</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">above. Additionally, fluctuations in the market value of municipal bonds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">deposited into the TOB trust may adversely affect the Trusts&#146; NAVs</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">per share.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The use of leverage may enhance opportunities for increased income to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts and Common Shareholders, but as described above, it also creates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risks as short- or long-term interest rates fluctuate. Leverage also will gen-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">erally cause greater changes in the Trusts&#146; NAVs, market price and dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate than a comparable portfolio without leverage. If the income derived</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from securities purchased with assets received from leverage exceeds the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cost of leverage, the Trusts&#146; net income will be greater than if leverage had</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not been used. Conversely, if the income from the securities purchased is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">not sufficient to cover the cost of leverage, the Trusts&#146; net income will be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less than if leverage had not been used, and therefore the amount avail-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">able for distribution to shareholders will be reduced. The Trusts may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">required to sell portfolio securities at inopportune times or at distressed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">values in order to comply with regulatory requirements applicable to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of leverage or as required by the terms of leverage instruments which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may cause the Trusts to incur losses. The use of leverage may limit the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts&#146; ability to invest in certain types of securities or use certain types of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hedging strategies, such as in the case of certain restrictions imposed by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ratings agencies that rate preferred shares issued by a Trust. The Trusts will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">incur expenses in connection with the use of leverage, all of which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">borne by the holders of the Common Shares and may reduce income to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Common Shares.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the Investment Company Act of 1940, the Trusts are permitted to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issue Preferred Shares in an amount of up to 50% of their total managed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets at the time of issuance. Under normal circumstances, each Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">anticipates that the total economic leverage from Preferred Shares and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TOBs will not exceed 50% of its total managed assets at the time such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">leverage is incurred. As of August 31, 2009, the Trusts had economic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">leverage from Preferred Shares and TOBs as a percentage of their total</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">managed assets as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=46%></TD>
     <TD width=53%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Percent of</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Leverage</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">15</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Derivative Financial Instruments</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may invest in various derivative instruments, including financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">futures contracts and swap agreements as specified in Note 2 of the Notes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to Financial Statements, which constitute forms of economic leverage. Such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instruments are used to obtain exposure to a market without owning or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">taking physical custody of securities or to hedge market and/or interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate risks. Such derivative instruments involve risks, including the imperfect</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">correlation between the value of a derivative instrument and the underlying</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset, possible default of the counterparty to the transaction and illiquidity</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the derivative instrument. The Trusts&#146; ability to successfully use a derivative</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instrument depends on the investment advisor&#146;s ability to accurately pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dict pertinent market movements, which cannot be assured. The use of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">derivative instruments may result in losses greater than if they had not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been used, may require the Trusts to sell or purchase portfolio securities at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inopportune times or for distressed values, may limit the amount of appre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ciation the Trusts can realize on an investment or may cause the Trusts to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">hold a security that it might otherwise sell. The Trusts&#146; investments in these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">instruments are discussed in detail in the Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">16 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=5%></TD>
     <TD width=11%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California &#151; 124.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 64.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Benicia Unified School District, GO, CAB, Series B</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.54%, 8/01/23 (a)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,031,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Central Unified School District, GO, Election of 2008,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AGC), 5.63%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414,592</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ceres Unified School District, GO, CAB, Election of 2001,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (MBIA) (a):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.91%, 8/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,055</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">907,854</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.92%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">889,192</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.92%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">868,857</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.92%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,440</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">852,569</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.89%, 8/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,575</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">843,736</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.90%, 8/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,275</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">728,786</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Kern California, COP, Capital Improvement</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Projects, Series A (AGC), 6.00%, 8/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,588,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Evergreen Elementary School District, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2006, Series B (AGC), 5.13%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,095,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fontana Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2006, Series B (FSA), 5.25%, 8/01/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,735,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Glendale Community College District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2002 Election, Series D (MBIA), 5.00%, 11/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,531,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hemet Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2006 Election, Series B (AGC), 5.13%, 8/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,140</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,168,184</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long Beach Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2008, Series A, 5.75%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,076,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Community College District California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2001 Series A (MBIA), 5.00%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,543,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Marysville Joint Unified School District California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2008 (AGC), 5.25%, 8/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,690</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,748,035</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Murrieta Valley Unified School District Public Financing</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, Special Tax, Series A (AGC), 5.13%, 9/01/26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,014,970</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Riverside Unified School District, California, GO, Election,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.00%, 2/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,037,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Jose Financing Authority, RB, Civic Center Project,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (AMBAC), 5.00%, 6/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,002,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Leandro Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2006, Series B (FSA), 6.25%, 8/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,125</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,263,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Westminster Redevelopment Agency, California, TAN,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commercial Redevelopment Project Number 1 (AGC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 11/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,123,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47,465,662</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 12.0%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Educational Facilities Authority, RB, Scripps</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">College (MBIA), 5.00%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,385</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,576,563</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California State University, RB, Systemwide, Series A</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 11/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,997,280</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=15%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pittsburg Unified School District, GO, Election of 2006,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (FSA), 5.50%, 8/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,091,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Snowline Joint Unified School District, COP, Refinancing</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Program (AGC), 5.75%, 9/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,116,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,782,403</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 3.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State of California, GO, Various Purpose,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 4/01/33</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,764,575</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 6.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Orange California, RB, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,039,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Joaquin Hills Transportation Corridor Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, Refunding RB, CAB, Series A (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.49%, 1/15/31 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,901,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,940,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 36.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California State Department of Water Resources, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Central Valley Project, Series AE, 5.00%, 12/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,639,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Los Angeles California, Refunding RB (MBIA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.00%, 6/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,018,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series A, 5.00%, 6/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,040,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Napa California, RB (AMBAC), 5.00%, 5/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,022,590</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">East Bay Municipal Utility District, RB, Sub-Series A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 6/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,079,620</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">East Bay Municipal Utility District, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.00%, 6/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,126,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Water District of Southern California, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authorization, Series B-2 (MBIA), 5.00%, 10/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,857,415</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Orange County, California, Sanitation District, COP,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (FSA), 5.00%, 2/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,035,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,819,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 124.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,772,395</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (b)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California &#151; 29.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 3.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of California, RB, Series O, 5.75%, 5/15/34</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,205</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,414,210</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 13.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego County Water Authority, COP, Series A:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FSA), 5.00%, 5/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,297,388</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 5/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,292</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,300,260</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,597,648</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=32%></TD>
     <TD width=7%></TD>
     <TD width=26%></TD>
     <TD width=7%></TD>
     <TD width=24%></TD></TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Portfolio Abbreviations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">To simplify the listings of portfolio holdings in each Trust&#146;s</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">ACA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Capital Access Corp.</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">GNMA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Government National Mortgage Association</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schedule of Investments, the names and descriptions of</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">AGC</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Assured Guaranty Corp.</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">GO</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Obligation Bonds</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">many of the securities have been abbreviated according</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">AMBAC</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Municipal Bond Assurance Corp.</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">HDA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing Development Authority</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the following list:</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">AMT</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Alternative Minimum Tax (subject to)</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">HFA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing Finance Agency</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CAB</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Appreciation Bonds</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">IDA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Industrial Development Authority</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">CIFG</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CDC IXIS Financial Guaranty</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MBIA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Bond Investors Assurance</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">COP</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certificates of Participation</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(National Public Finance Guaranty Corp.)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">DRIVERS</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Derivative Inverse Tax-Exempt Receipts</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">M/F</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Multi-Family</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">EDA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Economic Development Authority</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">PILOT</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Payment in Lieu of Taxes</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FGIC</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Guaranty Insurance Co.</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">RB</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revenue Bonds</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FHA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Federal Housing Administration</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">S/F</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Single-Family</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FNMA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Federal National Mortgage Association</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">TAN</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax Anticipation Notes</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">FSA</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Security Assurance Inc.</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">VRDN</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Variable Rate Demand Notes</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">17</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (b)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 12.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Community College District, California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2001 (FSA), 5.00%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,040,980</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2008, 6.00%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,828</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,230,988</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Community College District, California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2002, 5.25%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,004</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,082,764</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,354,732</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 29.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,366,590</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;111,928,541) &#151; 153.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,138,985</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA California Municipal Money Fund, 0.04% (c)(d)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,412,842</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,412,842</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;2,412,842) &#151; 3.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,412,842</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;114,341,383*) &#151; 156.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">114,551,827</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">908,579</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (15.0)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,002,438)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (42.8)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(31,325,412)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,132,556</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;103,411,682</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,686,056</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,535,116)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 150,940</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Securities represent bonds transferred to a tender option bond trust in exchange for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which the Trust acquired residual interest certificates. These securities serve as col-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lateral in a financing transaction. See Note 1 of the Notes to Financial Statements for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">details of Municipal Bonds Transferred to Tender Option Bond Trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=55%></TD>
     <TD width=22%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA California Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(3,860,025)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;36,987</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Trust adopted Financial Accounting Standards</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Measurements&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, estab-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lishes a framework for measuring fair values and requires additional disclosures</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about the use of fair value measurements. Various inputs are used in determining</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the fair value of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=58%></TD>
     <TD width=41%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,412,842</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,138,985</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 114,551,827</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">18 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=4%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California &#151; 118.5%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 1.7%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Regional Airports Improvement Corp.,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, Refunding RB, Facilities Sublease,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LA International, Series B, AMT, 7.50%, 12/01/24</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 848,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 36.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hayward Unified School District California, GO, Election</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008, 5.00%, 8/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,030,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lathrop Financing Authority, RB, Water Supply Project,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 6/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">976,969</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Live Oak Unified School District, GO, CAB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2004, Series B (Syncora) (a):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.57%, 8/01/18 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">905</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">303,157</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.58%, 8/01/18 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">945</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">299,168</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.53%, 8/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">705</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">201,819</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.54%, 8/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">795</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">212,861</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.55%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.56%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">865</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">196,537</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D, 5.30%, 1/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">509,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Modesto Irrigation District, COP, Series B,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">757,778</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pittsburg Redevelopment Agency, TAN, Refunding,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Medanos Community Project, Sub-Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 9/01/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,045,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Regional Building Authority, California,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, County Operations Center &amp; Annex, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 2/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,049,660</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Santa Ana Unified School District:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">COP, CAB, Financing Project (FSA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.85%, 4/01/29 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,313,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">GO (MBIA), 5.38%, 8/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,145</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Santa Cruz County Redevelopment Agency, California,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TAN, Live Oak, Soquel Community Improvement,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 7.00%, 9/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">521,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Val Verde Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008 Election, Series A, 5.50%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,615</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,656,086</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Westminster Redevelopment Agency, California, TAN,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subordinate, Commercial Redevelopment Project</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Number 1 (AGC), 6.25%, 11/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,123,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,907,990</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 23.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Educational Facilities Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Stanford University, Series Q, 5.25%, 12/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,085,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of San Diego, Series A, 5.25%, 10/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,253,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Infrastructure &amp; Economic Development</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, RB, J. David Gladstone Institute Project,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 10/01/14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,409,987</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peralta Community College District California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2006 Election, Series C, 5.50%, 8/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,890</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,078,544</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,827,031</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 21.2%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ABAG Finance Authority for Nonprofit Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Revenue Sharp Healthcare, 6.38%, 8/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,011,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Health Facilities Financing Authority,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, RB, Catholic Healthcare West, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 7/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">499,260</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=15%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Statewide Communities Development</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catholic Healthcare West, Series E,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,196,337</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kaiser Permanente, Series A, 5.50%, 11/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,935,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sutter Health, Series B, 5.63%, 8/15/42</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,025</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,952,971</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Statewide Community Development Authority</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revenue, Refunding RB, Daughters of Charity Health,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series H, 5.25%, 7/01/25</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,025</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">904,931</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,500,539</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 8.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M/F Housing Revenue Bond Pass-Through</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certificates, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 3, Westgate Courtyards Apartments, AMT,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.80%, 11/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,260</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,280,589</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 5, AMT, 5.95%, 11/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,105</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,113,757</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,394,346</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 10.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California State Public Works Board, RB, Department</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Riverside Campus Project, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 4/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,070,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State of California, GO, Various Purpose,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 4/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,875</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,285,091</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,355,671</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 10.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Orange California, RB, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,039,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foothill Eastern Transportation Corridor Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, Refunding RB, 5.75%, 1/15/40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,845</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,032,359</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Francisco City &amp; County Airports Commission,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">950</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">999,030</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,070,889</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 5.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Infrastructure &amp; Economic Development</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, RB, California Independent System Operator,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 6.25%, 2/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,030,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Orange County, California, Sanitation District, COP,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (FSA), 5.00%, 2/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,700</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,719,873</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750,673</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in California</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,656,029</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 7.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 7.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.20%, 11/15/14 (c)(d)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,787,210</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,787,210</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 6.50%, 8/01/44</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,080,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,080,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 128.4%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,523,599</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">19</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (e)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California &#151; 27.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 18.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Community College District, California, GO:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2001 (FSA), 5.00%, 8/1/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,027,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2008, Series A, 6.00%, 8/1/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,879</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,181,526</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Community College District, California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2002, 5.25%, 8/1/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,002</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,041,382</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Santa Clara County, California, Financing Authority Lease</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revenue Refunding Bonds, Series L, 5.25%, 5/15/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,999</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,061,636</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,311,864</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 3.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of California, RB, Series O, 5.75%, 5/15/34</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,695</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,855,822</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 5.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Eastern Municipal Water District, California, COP,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series H, 5.00%, 7/1/33</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,549</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,563,196</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 27.7%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,730,882</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;76,403,427) &#151; 156.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77,254,481</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA California Municipal Money Fund, 0.04% (f)(g)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,649,532</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,649,532</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;3,649,532) &#151; 7.4%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,649,532</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;80,052,959*) &#151; 163.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,904,013</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liabilities in Excess of Other Assets &#151; (2.9)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,445,862)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (15.2)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,512,904)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (45.4)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,450,295)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,494,952</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=58%></TD>
     <TD width=41%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 72,513,617</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,442,495</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,560,576)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 881,919</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) US government securities, held in escrow, are used to pay interest on this security</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Securities represent underlying bonds transferred to a tender option bond trust</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in exchange for which the Trust acquired residual interest certificates. These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities serve as collateral in a financing transaction. See Note 1 of the Notes to</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Statements for details of Municipal Bonds Transferred to Tender Option</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bond Trusts.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=3%></TD>
     <TD width=51%></TD>
     <TD width=22%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=right colspan=5>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA California Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,515,427</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15,009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Trust adopted Financial Accounting Standards</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Measurements&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a framework for measuring fair values and requires additional disclosures about the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair value</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,649,532</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77,254,481</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 80,904,013</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">20 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=5%></TD>
     <TD width=11%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California &#151; 109.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 2.5%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Pollution Control Financing Authority, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Waste Management Inc. Project, Series C, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 12/01/27</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,261,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Regional Airports Improvement Corp.,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, RB, Series C, AMT, 7.50%, 12/01/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,785</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,515,269</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,776,309</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 46.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Butte-Glenn Community College District, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2002, Series C, 5.50%, 8/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,674,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chabot-Las Positas, California, Community College</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">District, GO (Election of 2004), Series B (AMBAC),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,530,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corona-Norca Unified School District, California,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Special Tax, Community Facilities District No. 98-1</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.10%, 9/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,666,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long Beach Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2008, Series A, 5.75%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,076,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Alamitos Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School Facilities Improvement District No. 1,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,125</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,319,237</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Community College District, California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2003 Election, Series F-1, 5.00%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,514,985</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D, 5.30%, 1/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,140,152</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Modesto Irrigation District, COP:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Improvement, Series A, 5.75%, 10/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,157,860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 5.50%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,667,111</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pittsburg Redevelopment Agency, Tax Allocation,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding, Subordinate, Los Medanos Community</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project, Series A, 6.50%, 9/01/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,091,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Regional Building Authority, California,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, County Operations Center &amp; Annex, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 2/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,639,728</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Jose Unified School District, Santa Clara</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County California, GO, Election of 2002, Series D,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,785,420</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Santa Ana Unified School District, GO, Election of 2008,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,995,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 8/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,058,652</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Santa Cruz County Redevelopment Agency, California,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TAN, Live Oak, Soquel Community Improvement,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 6.63%, 9/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,039,630</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Torrance Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2008, Measure Z, 6.00%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,627,935</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Val Verde Unified School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008 Election, Series A, 5.50%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,127,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Westminster Redevelopment Agency, California, TAN,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subordinate, Commercial Redevelopment Project No. 1</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AGC), 6.25%, 11/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,486,744</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,599,744</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 6.0%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oak Grove School District, California, GO,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2008, Series A, 5.50%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,078,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of California, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series A (AMBAC), 5.00%, 5/15/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,014,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Limited Project, Series D (MBIA), 5.00%, 5/15/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,538,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,631,730</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=65%></TD>
     <TD width=14%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 21.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ABAG Finance Authority for Nonprofit Corp.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, California Revenue Sharp Healthcare,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.38%, 8/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,011,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Health Facilities Financing Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catholic Healthcare West, Series A, 6.00%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,409,156</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Providence Health &amp; Services, Series C,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 10/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,084,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Infrastructure &amp; Economic Development</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, RB, Kaiser Hospital Assistance I, LLC, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.55%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,735</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,741,558</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Statewide Communities Development</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Catholic Healthcare West, Series E, 5.50%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,196,338</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health Facilities, Memorial Health Services,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 10/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,844,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kaiser Permanente, Series A, 5.50%, 11/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,935,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sutter Health, Series B, 5.50%, 8/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,828,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,052,082</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 10.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California State Public Works Board, RB, Department of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Riverside Campus Project, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 4/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,211,740</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State of California, GO, Various Purpose,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 4/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,570,183</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,781,923</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 14.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Orange California, RB, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,118,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Sacramento California, RB, Senior, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500,810</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foothill Eastern Transportation Corridor Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, RB, CAB, Senior Lien, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.76%, 1/01/26 (a)(b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,834,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port of Oakland, RB, Series K, AMT (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 11/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">680</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">673,533</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Francisco City &amp; County Airports Commission,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,575</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,656,286</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Joaquin Hills Transportation Corridor Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California, Refunding RB, CAB, Series A (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 1/15/34 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,600,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,384,229</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 9.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Infrastructure &amp; Economic Development</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bank, RB, California Independent System Operator,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 6.25%, 2/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,061,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Chula Vista California, RB, 5.88%, 1/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">512,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Santa Rosa California, RB, CAB, Series B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.42%, 9/01/25 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,685</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,089,063</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Department of Water &amp; Power, RB, System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.38%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,659,904</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Public Facilities Financing Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior, Series A, 5.25%, 5/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,031,760</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Public Facilities Financing Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series A, 5.25%, 8/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,514,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,868,412</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in California</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,094,429</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">21</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 3.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 3.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust (c)(d):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 5/15/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 509,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 5/15/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,543,425</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 5/15/19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,026,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.30%, 5/15/19</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,031,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,111,230</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 6.50%, 8/01/44</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,160,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,160,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 114.9%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126,366,379</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (e)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California &#151; 38.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 16.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Los Angeles Community College District, California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FSA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2001, 5.00%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,040,980</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election 2008, 6.00%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,828</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,230,988</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">San Diego Community College District, California, GO,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Election of 2002, 5.25%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,991</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,108,603</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Santa Clara County Financing Authority, RB, Refunding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lease Series L, 5.25%, 5/15/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,005</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,172,939</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,553,510</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 8.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California Educational Facilities Authority, RB, University</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Southern California, Series A, 5.25%, 10/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,680,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California State University, RB, Systemwide, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FSA), 5.00%, 11/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,408,208</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of California, RB, Series O, 5.75%, 5/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,805</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,071,138</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,159,896</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 13.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">California State Department of Water Resources,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Central Valley Project, Series AE,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 12/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,390,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Eastern Municipal Water District, California, COP,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series H, 5.00%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,097</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,136,742</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,527,062</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 38.4%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,240,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;167,965,822) &#151; 153.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,606,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA California Municipal Money Fund,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.04% (f)(g)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,042,881</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,042,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;6,042,881) &#151; 5.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,042,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;174,008,703*) &#151; 158.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">174,649,728</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 4.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,084,243</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (21.1)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(23,200,005)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (42.3)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(46,553,285)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;109,980,681</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=79%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;150,794,537</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,674,173</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,005,629)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 668,544</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Security is collateralized by Municipal or US Treasury Obligations.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Securities represent bonds transferred to a tender option bond trust in exchange for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which the Trust acquired residual interest certificates. These securities serve as col-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lateral in a financing transaction. See Note 1 of the Notes to Financial Statements for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">details of Municipal Bonds Transferred to Tender Option Bond Trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=3%></TD>
     <TD width=51%></TD>
     <TD width=22%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA California Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,042,637</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;40,664</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, The Trust adopted Financial Accounting Standards</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measure-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures about the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,042,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,606,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 174,649,728</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">22 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_25"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=5%></TD>
     <TD width=11%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Maryland &#151; 115.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 1.0%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland Economic Development Corp., Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Potomac, 6.20%, 9/01/22</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 274,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 39.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Annapolis Maryland, TAN, Park Place Project,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.35%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">340,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Baltimore Maryland, Special Tax, Special</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Obligation, Harborview Lot Number 2, 6.50%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">993</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">729,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Anne Arundel Maryland, RB, Community</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">College Project, 5.25%, 9/01/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,874,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Baltimore Maryland, GO, Metropolitan District:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67th Issue, 5.00%, 6/01/22</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,074,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68th Issue, 5.00%, 8/01/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,055,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Frederick Maryland, Special Tax, Urbana</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Community Development Authority, 6.63%, 7/01/25</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">860,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Montgomery Maryland, RB, Metrorail</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Garage Projects:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 6/01/23</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">524,835</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 6/01/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,435</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,506,276</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Prince George&#146;s Maryland, Special Obligation,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">National Harbor Project, 5.20%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,075,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,041,790</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 17.6%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland Health &amp; Higher Educational Facilities</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board of Child Care, 5.38%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,998,540</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Loyola College Issue, 5.00%, 10/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,873,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland Industrial Development Financing Authority,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Our Lady of Good Counsel School, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 5/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">839,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University System of Maryland, RB, Auxiliary</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facilities &amp; Tuition Series A, 4.50%, 4/01/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">256,438</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,967,118</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 29.4%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Baltimore Maryland, RB, Oak Crest Village Inc.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facilities, Series A, 5.00%, 1/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">888,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Howard Maryland, Refunding RB, Vantage</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">House Facilities, Series A, 5.25%, 4/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">323,485</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland Health &amp; Higher Educational Facilities</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Carroll County General Hospital, 6.00%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,990</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,008,328</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peninsula Regional Medical Center, 5.00%, 7/01/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">966,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Union Hospital of Cecil County Issue,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,993,460</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Maryland Medical, 5.25%, 7/01/11 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,153,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,333,873</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 1.7%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland Community Development Administration, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Residential, Series A, AMT, 5.75%, 9/01/39</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">470</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">475,339</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 6.7%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland State Transportation Authority, RB, Baltimore,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wash International Airport, Series B, AMT (AMBAC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 3/01/24</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,906,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 19.7%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Baltimore Maryland, Refunding RB, Wastewater</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Projects, Series A (MBIA):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.20%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,554,725</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 7/01/42</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,009,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Anne Arundel Maryland, GO, Consolidated,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Water &amp; Sewer, 4.75%, 4/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,690</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,581,475</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Maryland</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,580,965</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=4%></TD>
     <TD width=11%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">District of Columbia &#151; 3.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 3.6%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Washington Metropolitan Area Transit Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.13%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,017,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in District of Columbia</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Guam &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 0.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Territory of Guam, RB, Section 30, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 12/01/29</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">249,227</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Guam</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">249,227</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 7.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 7.6%</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 colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust, 7.20%, 11/15/14 (b)(c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,164,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,164,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 18.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 4.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Public Buildings Authority, RB, Government</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facilities, Series D, 5.38%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">313,463</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 6.38%, 8/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,072,460</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,385,923</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 4.0%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Children&#146;s Trust Fund, RB, Asset Backed Bonds,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 5/15/39</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,141,860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 9.2%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Series D, 5.25%, 7/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,659,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series CC (FSA), 5.25%, 7/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">895</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">937,307</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,597,147</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,124,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 145.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,136,562</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</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 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (d)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Maryland &#151; 11.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 11.0%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland State Transportation Authority, RB, Transit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility Project (FSA), 5.00%, 7/01/41</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,101,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</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 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 11.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,101,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</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 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;44,872,807) &#151; 156.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,238,082</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">23</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=16%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FFI Institutional Tax-Exempt Fund, 0.22% (e)(f)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200,364</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,200,364</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;1,200,364) &#151; 4.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200,364</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;46,073,171*) &#151; 160.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,438,446</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376,154</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (5.3)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,503,884)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (56.5)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(16,000,854)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,309,862</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,492,408</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,227,831</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,781,793)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (553,962)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) US government securities, held in escrow, are used to pay interest on this security</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Securities represent bonds transferred to a tender option bond trust in exchange</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for which the Trust acquired residual interest certificates. These securities serve as</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">collateral in a financing transaction. See Note 1 of the Notes to Financial State-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments for details of municipal bonds transferred to tender options bond trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=56%></TD>
     <TD width=21%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FFI Institutional Tax-Exempt Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(903,062)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;28,074</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Trust adopted Financial Accounting Standards</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Measurements&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, estab-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lishes a framework for measuring fair values and requires additional disclosures</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about the use of fair value measurements. Various inputs are used in determining</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the fair value of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=58%></TD>
     <TD width=41%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,200,364</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,238,082</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 45,438,446</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">24 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)</FONT></B></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=4%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 125.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 11.1%</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=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB, AMT:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Japan Airlines Co. (FSA), 6.00%, 11/01/15</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,640</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,655,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Terminal One Group Association Project,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 1/01/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,446,585</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Liberty Development Corp., RB, Goldman</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sachs Headquarters, 5.25%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">973,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Energy Research &amp; Development</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brooklyn Union Gas, KeySpan, Series A, AMT (FGIC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.70%, 2/01/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,340</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,729,538</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lilco Project, Series A (MBIA), 5.15%, 3/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,005,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Energy Research &amp; Development</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, Refunding RB, Central Hudson Gas,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.45%, 8/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,065,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suffolk County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, AMT:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">KeySpan, Port Jefferson, 5.25%, 6/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,355</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,991,924</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ogden Martin System Huntington (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 10/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,660</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,820,956</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ogden Martin System Huntington (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.15%, 10/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,271,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ogden Martin System Huntington (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 10/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,530</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,773,111</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,733,799</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#150; 37.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Buffalo New York, GO, General Improvement,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D (FSA), 6.00%, 12/01/09 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,048,180</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York, New York, GO:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FSA), 6.25%, 5/15/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,867,943</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (MBIA), 5.75%, 8/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,280</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,393,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series J-1, 4.50%, 5/15/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989,310</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Yonkers New York, GO, Series A (FGIC),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 10/01/10</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,795</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,914,529</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Erie County, GO, Public Improvement,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 10/01/09 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">915</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">927,947</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 10/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">110</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">111,303</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson Yards Infrastructure Corp., RB, Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FGIC), 5.00%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,145,767</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 4.50%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,153,970</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Health &amp; Hospital Corp., RB, Health</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">System, Series A (MBIA), 5.25%, 2/15/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,011,680</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, PILOT:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Appreciation, Yankee Stadium</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AGC), 6.46%, 3/01/39 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,380</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232,447</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.38%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">884,952</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,707,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,740</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,514,539</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,582,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,837,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Stadium (FGIC), 5.00%, 3/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,201,465</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Stadium (MBIA), 5.00%, 3/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,950</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,569,338</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2008, Series S-1, 4.50%, 1/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,760</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,634,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series S-1 (AGC), 5.50%, 7/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,179,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,307,662</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (continued)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB (concluded):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Future Tax Secured, Series B (FGIC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 11/15/18</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,405</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,735,882</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Future Tax Secured, Series C (FGIC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 2/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,145,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Future Tax Secured, Series E (MBIA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 2/01/22</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,652,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FGIC), 5.00%, 11/15/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,025,810</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (MBIA), 5.50%, 2/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,145</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,223,295</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (MBIA), 5.50%, 2/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">805</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">859,064</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series S-2 (FSA), 5.00%, 1/15/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,765,862</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series S-2 (MBIA), 4.25%, 1/15/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,244,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Convention Center Operating Corp., RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hotel Unit Fee Secured (AMBAC):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,048,886</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/15/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,688,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/15/44</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,055</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,859,467</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Oneida-Herkimer Solid Waste Management Authority,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB (FSA), 5.50%, 4/01/13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,084</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sales Tax Asset Receivable Corp., RB (AMBAC):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">DRIVERS, Series 1438Z, 7.72%, 9/07/09 (c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,422,038</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.00%, 10/15/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,580,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Syracuse Industrial Development Agency, New York,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Carousel Center Project, Series A, AMT (Syncora),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,566,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">160,056,107</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 10.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Albany Industrial Development Agency, RB, University</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Heights, Albany Law School, Series A (Radian),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 12/01/09 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,375</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,462,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Madison County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Colgate University Project, Series A</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,097,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Polytechnic University Project (ACA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 11/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,160</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,730,938</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Nightingale, Bamford School (AMBAC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 1/15/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,284,984</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,033,390</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Trust for Cultural Resources,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, American Museum Natural History,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.00%, 7/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,855,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">853 Schools Program, Issue 2, Series E (AMBAC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/19</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,340</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,357,139</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mount Sinai School Medical New York University</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,081,793</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NY University, Insured, Series 1 (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 7/01/40</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,956,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pace University (MBIA), 6.00%, 7/01/10 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,345</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,644,213</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schenectady Industrial Development Agency, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Union College Project, Series A (AMBAC) (a):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.45%, 12/01/09</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,163,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 7/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,324,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Westchester County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Purchase College Foundation Housing,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.75%, 12/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,099,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,090,432</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">25</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_28"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)</FONT></B></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=61%></TD>
     <TD width=6%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (continued)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 8.0%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Royal Charter, NY Presbyterian (FSA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 12/15/29</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,965</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,364,684</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gustavus Adolphus Child, Series B (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 7/01/18</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,058</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,083,725</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson Valley Hospital (FSA), 5.00%, 8/15/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,182,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Montefiore Hospital (MBIA), 5.00%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,011,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NY &amp; Presbyterian Hospital (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 8/01/11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,064,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NY &amp; Presbyterian Hospital (FSA), 5.00%, 8/15/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,024,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NY &amp; Presbyterian Hospital (FSA), 5.25%, 2/15/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,536,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NY State Rehabilitation Association, Series A</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(CIFG), 5.13%, 7/01/23</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">949,530</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NY State Rehabilitation Association, Series A</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(CIFG), 5.25%, 7/01/19</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,182,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Shore Long Island Jewish Health System,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 5/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,791,767</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saint Barnabas Hospital (AMBAC), 5.45%, 8/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,150,409</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saint Charles Hospital &amp; Rehabilitation Center,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.63%, 7/01/12</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,438,828</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saint Luke&#146;s, Roosevelt Hospital, FHA,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.90%, 8/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">997,310</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,777,983</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 4.3%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Housing Development Corp., RB, AMT:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C, 5.00%, 11/01/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,213,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C, 5.05%, 11/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,806,020</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series H-1, 4.70%, 11/01/40</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">859,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Mortgage Agency, New York, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Homeowner Mortgage, Series 67, AMT (MBIA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.70%, 10/01/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,140</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,141,883</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Homeowner Mortgage, Series 83 (MBIA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.55%, 10/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,100,798</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 82, AMT (MBIA), 5.65%, 4/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,035</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">981,801</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 133, AMT, 4.95%, 10/01/21</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,506,465</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 143, AMT, 4.90%, 10/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">901,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 143, AMT (MBIA), 4.85%, 10/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,904,980</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 145, AMT, 5.13%, 10/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">949,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State HFA, RB, Saint Philips Housing, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT (FNMA), 4.65%, 11/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">903,080</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Mortgage Agency Revenue,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Homeowner Mortgage, Series 97,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 4/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yonkers Industrial Development Agency, New York, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Monastery Manor Association L.P. Project, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 4/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,878,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,147,817</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 12.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Series B, 5.75%, 3/15/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,480,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Boces Program Lease (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.75%, 8/15/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,090</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,113,402</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Boces Program Lease (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 8/15/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255,305</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mental Health Facilities, Series B,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 2/15/14 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,550</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,745,936</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mental Health Services Facilities Improvement,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (FSA), 5.00%, 2/15/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,577,895</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (continued)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB (concluded):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mental Health Services Facilities, Series C, AMT</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FSA), 5.40%, 2/15/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,510,501</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Health Facilities Improvement Program,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 1 (FSA), 5.50%, 1/15/14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,535</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,640,301</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District Financing Program, Series A (FSA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,508,801</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District Financing Program, Series C (FSA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5%, 10/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,521,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District Financing Program, Series D (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,240</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,244,861</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District Financing Program, Series E (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 10/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,900</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,173,654</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Secured Hospital, North General Hospital (Syncora),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 2/15/17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,137,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Thruway Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second General, Series B, 5.00%, 4/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,045,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.00%, 4/01/26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,081,147</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Urban Development Corp., RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Personal Income Tax, Series C-1 (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 3/15/13 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,386,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Personal Income Tax, State Facilities,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A-1 (MBIA), 5.00%, 3/15/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,057,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,479,963</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 5.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco Settlement Financing Corp., New York, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset Backed (AMBAC):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A-2, 5.25%, 6/01/20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,250,350</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A-3, 5.25%, 6/01/21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,275</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,875,428</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A-4, 5.25%, 6/01/22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,081,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,206,898</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 22.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 2008C, 6.50%, 11/15/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,015</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,782,454</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C (FSA), 4.75%, 7/01/18 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,535</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,796,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, Refunding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB (MBIA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.25%, 11/15/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,523,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series F, 5.25%, 11/15/12 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,132,923</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Thruway Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series F (AMBAC), 5.00%, 1/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,076,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series G (FSA), 4.75%, 1/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,253,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series G (FSA), 4.75%, 1/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">994,780</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series G (FSA), 5.00%, 1/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,315,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series H (FSA), 5.00%, 1/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,574,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consolidated RB, 141st Series (CIFG), AMT,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.50%, 9/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">906,110</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB, Special</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project, JFK International Air Terminal, Series 6,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT (MBIA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 12/01/11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,115,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,136,231</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.90%, 12/01/17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,909,490</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 12/01/22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,725</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,892,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Triborough Bridge &amp; Tunnel Authority, New York, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series A (MBIA), 5.25%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,158,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subordinate Bonds (AMBAC), 5.00%, 11/15/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,465</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,524,875</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">96,092,473</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">26 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_29"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 12.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long Island Power Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series A (AGC), 6.00%, 5/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,652,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series B (FSA), 5.00%, 12/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,549,770</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AGC), 5.75%, 4/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,083,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.00%, 9/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,026,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2004, Series C (MBIA), 5.00%, 6/15/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010,530</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.00%, 6/15/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,529,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FSA), 4.25%, 6/15/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,968,164</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.75%, 6/15/11 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,060,570</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.13%, 6/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,266,575</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Crossover, Series F (FSA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 6/15/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,075</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Environmental Facilities Corp.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Long Island Water Corp. Project,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, AMT (MBIA), 4.90%, 10/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,123,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Environmental Facilities Corp.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, Refunding RB, Spring Valley Water Co.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B (AMBAC), 6.15%, 8/01/24</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,408,052</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,183,916</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in New York</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">528,769,388</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Guam &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Guam International Airport Authority, RB, General,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C, AMT (MBIA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 10/01/21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,700</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,614,789</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 10/01/22</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,050</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,017,313</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Guam</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,632,102</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 16.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico HFA, RB, Subordinate, Capital Fund</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Modernization, 5.13%, 12/01/27</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,047,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 6.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commonwealth of Puerto Rico, GO, Refunding (MBIA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Public Improvement, Series A, 5.50%, 7/01/20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,970</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,984,223</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series C-7, 6.00%, 7/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,014,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series C-7, 6.00%, 7/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,026,840</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Convention Center Authority, RB, Series A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,270</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,824,724</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series CC (FSA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,324,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,084,180</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Infrastructure Financing Authority, RB, CAB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 4.66%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,474,329</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 4.67%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282,502</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FGIC), 4.62%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,280</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,033,178</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FGIC), 4.66%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939,015</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Public Buildings Authority, Refunding</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Government Facilities, Series M-3 (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 7/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,516,775</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 5.75%, 8/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,025,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,530,496</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 6.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D, 5.75%, 7/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11,204,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series Y (FSA), 6.25%, 7/01/21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,025</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,612,322</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subordinate (FGIC), 5.25%, 7/01/17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,831,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series CC (FSA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,045,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 7/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910,838</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 7/01/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,927,263</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27,532,283</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 2.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Aqueduct &amp; Sewer Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Lien, Series A (AGC), 5.13%, 7/01/47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,950</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,916,270</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Electric Power Authority, RB, Series NN,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 7/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">940</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,070,228</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Electric Power Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series VV (MBIA), 5.25%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,015,180</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,001,678</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,111,707</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 142.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">601,513,197</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (d)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 25.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 7.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York, New York, GO:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series J, 5.00%, 5/15/23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,800</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,047,316</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series C3, (AGC), 5.75%, 8/15/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,166,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Erie County Industrial Development Agency, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Buffalo Project, (FSA), 5.75%, 5/01/24</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,152</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,224,652</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sales Tax Asset Receivable Corp., RB, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 10/15/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,481,705</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,919,673</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB, New York</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University, Series A, 5.00%, 7/01/38</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,498</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,584,453</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 15.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, New York, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, (MBIA), 5.00%, 11/15/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,002</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,111,433</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, New York,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series A (FSA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,010</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,058,346</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 11/15/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,412,880</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37th Series (FSA), 5.13%, 7/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,513,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Triborough Bridge &amp; Tunnel Authority, New York,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB (MBIA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 11/15/23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,469,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/15/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,309</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,441,015</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66,006,974</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series A, 5.75%, 6/15/40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,004</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,368,368</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series FF-2, 5.50%, 6/15/40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,399</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,568,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,937,215</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 25.6%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">108,448,315</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;718,995,429) &#151; 167.8%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">709,961,512</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">27</FONT></P>

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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 0.1%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York, New York, GO, VRDN</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series A-6 (FSA), 0.12%, 9/01/09 (e)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 375</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 375,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Money Market Fund &#151; 1.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund, 0.04% (f)(g)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,049,821</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,049,821</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;5,424,821) &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,424,821</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;724,420,250*) &#151; 169.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">715,386,333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,777,149</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (13.6)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(57,540,781)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (57.6)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(243,639,996)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;422,982,705</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 668,196,914</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,302,426</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(27,402,633)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (10,100,207)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) US government securities, held in escrow, are used to pay interest on this security</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Variable rate security. Rate shown is as of report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Securities represent bonds transferred to a tender option bond trust in exchange</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for which the Trust acquired residual interest certificates. These securities serve</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as collateral in a financing transaction. See Note 1 of the Notes to Financial</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements for details of municipal bonds transferred to tender option bond trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Security may have a maturity of more than one year at time of issuance, but has</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">variable rate and demand features that qualify it as a short-term security. The rate</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown is as of report date and maturity shown is the date the principal owed can</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be recovered through demand.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=55%></TD>
     <TD width=21%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,580,348</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;83,495</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Trust adopted Financial Accounting Standards</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measure-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures about the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair value</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=78%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,049,821</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">709,961,512</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2:</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">710,336,512</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 715,386,333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">28 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=7%></TD>
     <TD width=12%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New Jersey &#151; 131.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 10.1%</FONT></B>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey EDA, RB:</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Continental Airlines Inc. Project, AMT,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,335</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,019,565</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Disposal, Waste Management New Jersey,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, AMT, 5.30%, 6/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,006,170</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Continental, Eastern Project, LaGuardia, AMT,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.13%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120,065</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,145,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 13.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Vineland New Jersey, GO, Electric Utility,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT (MBIA):</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%, 5/15/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">972,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 5/15/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,449,315</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essex County Improvement Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County Guaranteed, Project Consolidation (MBIA),</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 10/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">790</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">869,363</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson County Improvement Authority, RB, County,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Guaranteed, Harrison Parking Facilities Project,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C (AGC), 5.38%, 1/01/44</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">800</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">834,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Middlesex County Improvement Authority, RB,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subordinate, Heldrich Center Hotel, Series B,</FONT>&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 1/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">560</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,291</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Salem County Improvement Authority, RB, Finlaw State</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Office Building (FSA), 5.25%, 8/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">103,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,341,479</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 11.5%</FONT></B>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey Educational Facilities Authority, RB:</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgian Court College Project, Series C,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 7/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">746,128</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Montclair State University, Series J, 5.25%, 7/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">181,633</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey Educational Facilities Authority, Refunding RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">College of New Jersey, Series D (FSA),</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,039,734</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fairleigh Dickinson, Series C, 6.00%, 7/01/20</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010,330</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Georgian Court University, Series D,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135,489</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Medicine &amp; Dentistry, Series B,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%, 12/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495,378</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,608,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 36.9%</FONT></B>&nbsp;</TD>
	<TD 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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey EDA, RB, First Mortgage, Lions Gate Project,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A:</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 1/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.88%, 1/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">265</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200,830</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey EDA, Refunding RB:</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Mortgage, Winchester, Series A,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.80%, 11/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,263,175</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Seabrook Village Inc. Facilities, 5.25%, 11/15/26</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">470</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">367,526</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey Health Care Facilities Financing Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Atlantic City Medical, 5.75%, 7/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,110</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,127,549</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Health System, Catholic Health East, Series A,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 11/15/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,249,320</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hospital Asset Transformation Program, Series A,</FONT>&nbsp;</TD>
	<TD 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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 10/01/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">505,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Meridian Health, Series I (AGC), 5.00%, 7/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">253,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">South Jersey Hospital, 6.00%, 7/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,825,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">South Jersey Hospital, 5.00%, 7/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">436,335</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virtua Health (AGC), 5.50%, 7/01/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">413,160</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New Jersey (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey Health Care Facilities Financing Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Saint Barnabas Health, Series B (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.90%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 86,695</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.69%, 7/01/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">351,576</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.76%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,600</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">321,516</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,527,332</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 7.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey State Housing &amp; Mortgage Finance</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agency, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">S/F Housing, Series T, AMT, 4.70%, 10/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">219,577</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series AA, 6.38%, 10/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,090,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series AA, 6.50%, 10/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">483,471</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newark Housing Authority, RB, South Ward Police</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facility (AGC):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 12/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">186,469</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 12/01/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">405</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443,884</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,423,981</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 30.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Garden State Preservation Trust, RB, CAB, Series B</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FSA), 5.24%, 11/01/27 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,652,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey EDA, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cigarette Tax (Radian), 5.75%, 6/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,823,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Newark Downtown District Management Corp.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 6/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">191,172</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School Facilities Construction, Series Z (AGC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 12/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,067,490</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School Facilities Construction, Series Z (AGC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 12/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,108,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey EDA, Refunding RB, School Facilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Construction, Series AA, 5.50%, 12/15/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">535,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey EDA, Special Assessment, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kapkowski Road Landfill Project, 6.50%, 4/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,836,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey Transportation Trust Fund Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey, RB, Transportation System:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CAB, Series C (FSA), 4.84%, 12/15/32 (b)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">310,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 6.00%, 12/15/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">543,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AGC), 5.63%, 12/15/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">216,126</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State of New Jersey, COP, Equipment Lease Purchase,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.25%, 6/15/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,128</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,490,551</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco Settlement Financing Corp., New Jersey, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 1A, 4.50%, 6/01/23</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">390</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">358,348</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 18.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey State Turnpike Authority, RB, Series E,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 1/01/40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,031,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey Transportation Trust Fund Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Jersey, RB, Transportation System, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.88%, 12/15/38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495,958</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consolidated:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">125th Series (FSA), 5.00%, 4/15/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,535,745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT, 126th Series, (MBIA), 5.25%, 5/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,255,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT, 152nd Series, 5.75%, 11/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">525</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">551,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,870,303</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rahway Valley Sewerage Authority, RB, CAB, Series A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 4.39%, 9/01/33 (b)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">166,817</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in New Jersey</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,933,303</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">29</FONT></P>

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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 7.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 7.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.20%, 11/15/14 (c)(d)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,164,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,164,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 17.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico HFA, RB, Subordinate, Capital Fund</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Modernization, 5.13%, 12/01/27</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">765</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">777,048</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 5.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Infrastructure Financing Authority, RB, CAB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC) (b):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.36%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,718</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.53%, 7/01/43</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,310</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Public Buildings Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Government Facilities, Series M-3 (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 7/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">428,145</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 5.75%, 8/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">970</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">994,260</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,730,433</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 3.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series CC (AGC), 5.50%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,081,230</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 6.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Electric Power Authority, RB, Series II,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 7/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,972,145</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,560,856</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (e)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New Jersey &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Consolidated, 152nd Series, AMT,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 11/01/35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">634,533</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 2.0%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">634,533</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;50,831,993) &#151; 157.8%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,292,812</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New Jersey Municipal Money Fund, 0.04% (f)(g)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650,601</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650,601</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;650,601) &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650,601</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;51,482,594*) &#151; 159.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,943,413</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 1.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">493,088</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (1.4)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(420,116)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (60.1)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18,776,919)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,239,466</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,923,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,291,032</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,691,061)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,400,029)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) US government securities, held in escrow, are used to pay interest on this security</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Securities represent bonds transferred to a tender option bond trust in exchange</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for which the Trust acquired residual interest certificates. These securities serve</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as collateral in a financing transaction. See Note 1 of the Notes to Financial</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements for details of municipal bonds transferred to tender option bond trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=3%></TD>
     <TD width=3%></TD>
     <TD width=52%></TD>
     <TD width=22%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New Jersey Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(177,606)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;31,675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008 the Trust adopted Financial Accounting Standards</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measure-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures about the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments, which are as follows:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 650,601</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,292,812</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,943,413</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">30 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 116.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 1.4%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Liberty Development Corp., RB, Goldman</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sachs Headquarters, 5.25%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 243,410</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Energy Research &amp; Development</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB, Lilco Project, Series A (MBIA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.15%, 3/01/16</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,002,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,246,370</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 28.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York New York, GO, Sub-Series J-1,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.50%, 5/15/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">247,328</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Erie County Industrial Development Agency, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City School District Buffalo Project, Series A (FSA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 5/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,074,860</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Haverstraw-Stony Point Central School District,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, GO (FSA), 3.00%, 10/15/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">726,617</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson Yards Infrastructure Corp., RB, Series A (FGIC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,676,810</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB PILOT:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Appreciation, Yankee Stadium (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.46%, 3/01/39 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium, (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.38%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">165,928</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium, (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,826,874</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Stadium, (MBIA), 4.75%, 3/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">849,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Future Tax, Series B (AMBAC), 5.00%, 5/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,265</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,325,011</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series S-2 (FSA), 5.00%, 1/15/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">853,595</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Convention Center Operating Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,587,449</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/15/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,171,540</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,673,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 29.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Haverstraw-Stony Point Central School District,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, GO (FSA), 3.00%, 10/15/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109,432</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Herkimer County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, College Foundation Inc. Student</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing, 6.25%, 8/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">860,870</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Madison County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Colgate University Project, Series A</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,024,310</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lycee Francais De NY Project, Series A (ACA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 6/01/23</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,304,250</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,011,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Trust for Cultural Resources, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series American Museum Natural History, Series A</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 7/01/44</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,009,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, Brooklyn Law School, Series B (Syncora),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,739,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, Fit Student Housing Corp. (FGIC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 7/01/14 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,847,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, New York University, Series 2 (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/41</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,022,610</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mount Sinai School Medical New York University</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,478,325</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saints Joachim &amp; Anne Residence, 5.25%, 7/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,948,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,355,632</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=11%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 21.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FHA, Hospital, NY &amp; Presbyterian (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,001,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FHA, Insured Mortgage, Saint Barnabas, Series A</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 2/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,048,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FHA, NY &amp; Presbyterian Hospital (FSA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 2/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">512,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hospital, FHA, Insured Mortgage, Lutheran Medical</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,523,625</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson Valley Hospital (FSA), 5.00%, 8/15/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,072,980</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Shore Long Island Jewish Health System,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 5/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">343,627</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saint Luke&#146;s Roosevelt Hospital, FHA,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.90%, 8/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">747,982</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Winthrop University Hospital Association, Series A</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.25%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,023,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,274,294</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 9.6%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Series B, 5.75%, 3/15/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">657,636</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Boces Program Lease (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.75%, 8/15/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255,368</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mental Health Services Facilities Improvement,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FSA), 5.00%, 2/15/22</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,056,430</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School District Financing Program:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FSA), 5.00%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,010,870</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (MBIA), 5.00%, 4/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,003,880</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D (MBIA), 5.00%, 10/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,513,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,497,904</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 18.7%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, RB, Series 2008C,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 11/15/28</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">845,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, Refunding RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, Series A (MBIA), 5.25%, 11/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,289,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.00%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,639,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation, Series E (MBIA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 11/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,660</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,684,738</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Thruway Authority, RB, Series H (FSA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,035,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,494,515</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 7.1%</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=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long Island Power Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series A (AGC), 6.00%, 5/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,203,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series C, (CIFG), 5.25%, 9/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,054,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series F (MBIA), 4.25%, 5/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,415</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,196,609</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AGC), 5.75%, 4/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,690</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,831,014</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,285,663</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in New York</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,828,080</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 16.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 4.1%</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=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Industrial Tourist Educational Medical &amp;</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Environmental Control Facilities Financing Authority,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, University Plaza Project, Series A (MBIA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">902,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Industrial Tourist Educational Medical &amp;</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Environmental Control Facilities Financing Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Polytechnic University, Series A (ACA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 8/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,717,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,619,070</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">31</FONT></P>

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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 5.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commonwealth of Puerto Rico, GO, Refunding,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series C-7 (MBIA), 6.00%, 7/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,007,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series CC (FSA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,081,230</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,042,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Public Buildings Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Government Facilities, M-3 (MBIA), 6.00%, 7/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">503,355</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 5.75%, 8/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,025,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,659,085</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 2.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series Y (FSA), 6.25%, 7/01/21</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,233,760</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 4.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Aqueduct &amp; Sewer Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Lien, Series A (AGC), 5.13%, 7/01/47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,925</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,918,474</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Electric Power Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series VV (MBIA), 5.25%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,948,834</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,460,749</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">117,288,829</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (c)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 20.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 1.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York, New York, GO, Sub-Series C3, (AGC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 8/15/28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,116,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 17.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, New York,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series A (FSA), 5.00%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,080</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,138,672</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Triborough Bridge &amp; Tunnel Authority, New York,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, (MBIA), 5.00%, 11/15/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,404</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,553,280</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,691,952</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series A, 5.75%, 6/15/40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">539,911</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series FF-2, 5.50%, 6/15/40</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">405</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">433,493</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">973,404</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,781,956</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investment</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;136,552,924) &#151; 153.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135,070,785</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York New York, GO, Series H,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series H-3 (FSA), VRDN, 0.12%, 9/01/09 (d)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Money Market Funds &#151; 3.8%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund, 0.04% (e)(f)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,311,074</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,311,074</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;3,361,074) &#151; 3.8%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,361,074</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;139,913,998*) &#151; 157.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138,431,859</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 0.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">715,621</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (11.8)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,428,962)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (46.0)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(40,577,165)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,141,353</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 129,636,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,650,886</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,264,171)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (1,613,285)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) US government securities, held in escrow, are used to pay interest on this security,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Securities represent underlying bonds transferred to a tender option bond trust</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in exchange for which the Trust acquired residual interest certificates. These</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities serve as collateral in a financing transaction. See Note 1 of the Notes</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to Financial Statements for details of Municipal Bonds Transferred to Tender</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Option Bond Trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Security may have a maturity of more than one year at time of issuance, but has</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">variable rate and demand features that qualify it as a short-term security. The rate</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown is as of report date and maturity shown is the date the principal owed can</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be recovered through demand.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=56%></TD>
     <TD width=22%></TD>
     <TD width=18%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,310,774</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12,023</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">32 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Trust adopt Financial Accounting Standards Board</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measurements&#148;</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a framework</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for measuring fair values and requires additional disclosures about the use of fair</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value measurements. Various inputs are used in determining the fair value of invest-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,311,074</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135,070,785</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2:</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135,120,785</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 138,431,859</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="center">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">33</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=61%></TD>
     <TD width=6%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 122.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 12.1%</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=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essex County Industrial Development Agency, New York,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, International Paper Co. Project, Series A, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.63%, 9/01/32</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 97,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Airlines, JFK International Airport, AMT:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.63%, 8/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">642,203</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.75%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">849,410</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Liberty Development Corp., RB, Goldman</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sachs Headquarters, 5.25%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Continental, Eastern Project, LaGuardia, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.13%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,340</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,341,264</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suffolk County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, KeySpan, Port Jefferson, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 6/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">458,315</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,875,312</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 21.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York New York, GO:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A-1, 4.75%, 8/15/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">515,815</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D, 5.38%, 6/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,040</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,078,658</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series G-1, 6.25%, 12/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282,087</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series I-1, 5.38%, 4/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">473,557</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series J-1, 4.50%, 5/15/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">125</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">123,664</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson Yards Infrastructure Corp., RB, Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">178,454</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FGIC), 5.00%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">446,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 4.50%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">846,280</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Health &amp; Hospital Corp., RB, Health</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">System, Series A, 5.38%, 2/15/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,114,971</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, PILOT, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AGC), 6.38%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">110,619</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">223,877</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Queens Baseball Stadium (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 1/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">131,482</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Yankee Stadium (FGIC), 5.00%, 3/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">438,165</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2008, Series S-1, 4.50%, 1/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232,218</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series S-3, 5.25%, 1/15/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">511,485</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Convention Center Operating Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">904,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,612,317</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 19.4%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Albany Industrial Development Agency, RB, New</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Covenant Charter School Project, Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 5/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">135,378</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 5/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">130</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81,643</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dutchess County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bard College Civic Facility, Series A-2,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.50%, 8/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vassar College Project, 5.35%, 9/01/40 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,096,680</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB (ACA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lycee Francais De NY Project, Series A,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 6/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250,492</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Polytechnic University Project, 5.25%, 11/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Trust for Cultural Resources, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Juilliard School, Series A, 5.00%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">550</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">568,618</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Liberty Development Corp., RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">National Sports Museum Project, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.13%, 2/15/19 (b)(c)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">385</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">385</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (continued)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.83%, 7/01/39 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 175</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 135,231</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City University, 4th, Series A, 5.25%, 7/01/31 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,215</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,314,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, Iona College (Syncora), 5.13%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,435,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mount Sinai School Medical New York University</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">148,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rochester Institute Technology, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">325</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">346,759</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Teachers College, 5.50%, 3/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360,360</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Rochester, Series A, 5.13%, 7/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">215</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">218,556</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brooklyn Law School, 5.75%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">125</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">126,110</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,795,362</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 5.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Genesee County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, United Memorial Medical Center</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project, 5.00%, 12/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,367</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FHA, NY &amp; Presbyterian Hospital (FSA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 2/15/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">435,404</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, New York State Association for Retarded</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Children Inc., Series B (AMBAC), 6.00%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">190,803</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Shore Long Island Jewish Health System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 5/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">441,805</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NYU Hospital Center, Series B, 5.63%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">239,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Shore Long Island Jewish Health System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series E, 5.50%, 5/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">246,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saratoga County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Saratoga Hospital Project, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 12/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">176,970</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suffolk County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, Refunding RB, Jefferson&#146;s Ferry Project,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">260</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">217,836</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,050,888</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 7.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Housing Development Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, AMT, 5.50%, 11/01/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,479,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State HFA, RB, Highland Ave Senior</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Apartments, Series A, AMT, 5.00%, 2/15/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">437,470</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,917,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 20.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Series B, 5.75%, 3/15/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">328,818</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mental Health Services Facilities Improvement,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FSA), 5.00%, 2/15/22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">335</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">353,904</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Health Facilities, Lease, Sub-Series 2-4,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.75%, 1/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">491,640</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Urban Development Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Personal Income Tax:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 5.00%, 3/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,014,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Facilities, Series A, 5.25%, 3/15/32 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,541,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State of New York, GO, Series A, 5.00%, 2/15/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">514,410</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,244,172</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 8.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Counties Tobacco Trust III, RB, Tobacco</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Settlement Pass Thru, Turbo, 6.00%, 6/01/43</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,445</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,223,713</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TSASC, Inc., New York, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco Settlement Asset Backed, Series 1,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/15/32 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,260,260</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,483,973</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">34 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_37"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 15.7%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 2008C, 6.50%, 11/15/28</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 563,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.63%, 11/15/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,827</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 4.50%, 11/15/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">229,425</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, Refunding RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.13%, 11/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,514,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consolidated, 126th Series, AMT (MBIA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 5/15/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,756,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,325,747</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 12.1%</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=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long Island Power Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General, Series C (CIFG), 5.25%, 9/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">527,400</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 4/01/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">268,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 6.25%, 4/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,584</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2nd General Resolution (MBIA), 4.50%, 6/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">237,438</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (FGIC), 5.25%, 6/15/33 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,701,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Environmental Facilities Corp.,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Revolving Funds, New York City</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Water Project, D, 5.13%, 6/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,019,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,866,852</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in New York</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,171,693</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Guam &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Territory of Guam, RB, Section 30, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 12/01/34</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,392</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 0.5%</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 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Territory of Guam, GO, Series A, 7.00%, 11/15/39</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">225</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">225,617</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 0.4%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Guam Economic Development &amp; Commerce</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB, Tobacco Settlement Asset Backed,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 6/01/47</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 0.8%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Guam Government Waterworks Authority, RB, Water,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.88%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">310,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Guam</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">918,549</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 6.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 6.7%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.20%, 11/15/14 (e)(f)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,705,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,705,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 15.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 12.2%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commonwealth of Puerto Rico, GO, Public Improvement,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.13%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,825</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,648,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Infrastructure Financing Authority, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CAB, Series A, (AMBAC) (g):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.36%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">256,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/44</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">154,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Public Buildings Authority, RB, Government</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facilities, Series D, 5.25%, 7/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">720</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">658,354</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Public Buildings Authority, RB, Government</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Facilities, Series D, 5.25%, 7/01/27 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,980</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,185,168</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,903,502</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Children&#146;s Trust Fund, RB, Asset Backed Bonds,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 5/15/43</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 381,485</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 2.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D, 5.25%, 7/01/38 (a)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">829,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,114,907</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 146.5%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,910,299</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (h)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=center style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 7.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 6.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Mortgage Agency, Refunding RB, Series 101,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT, 5.40%, 4/01/32</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,557</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,527,516</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series A, 5.75%, 6/15/40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">405</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">441,745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,969,261</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;61,513,885) &#151; 153.9%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,879,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund, 0.04% (i)(j)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,137,340</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,137,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;1,137,340) &#151; 2.8%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,137,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;62,651,225*) &#151; 156.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,016,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 2.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">866,221</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (3.9)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,551,977)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (55.0)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(22,126,939)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,204,205</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,014,218</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,907,460</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,453,893)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 453,567</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) US government securities, held in escrow, are used to pay interest on this security as</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">well as to retire the bond in full at the date indicated, typically at a premium to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Non-income producing security.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Represents a step-up bond that pays an initial coupon rate for the first period and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then a higher coupon rate for the following periods. Rate shown reflects the current</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">yield as of report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">35</FONT></P>

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<A name="page_38"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) Securities represent underlying bonds transferred to a tender option bond trust</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in exchange for which the Trust acquired residual interest certificates. These securi-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties serve as collateral in a financing transaction. See Note 1 of the Notes to</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Statements for details of municipal bonds transferred to tender option</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bond trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=58%></TD>
     <TD width=19%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8,746</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,348</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 1, 2008, the Trust adopted Financial Accounting Standards</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measure-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments&#148; (&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">framework for measuring fair values and requires additional disclosures about the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=78%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,137,340</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,879,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,016,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">36 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_39"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 148.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 22.2%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Essex County Industrial Development Agency, New York,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, International Paper Co. Project, Series A, AMT:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 10/01/26</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 545,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.63%, 9/01/32</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">194,600</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Airlines, JFK International Airport, AMT,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.63%, 8/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,600</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,370,032</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">American Airlines, JFK International Airport, AMT,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.75%, 8/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,274,115</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Liberty, IAC/Interactive Corp., 5.00%, 9/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">626,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Liberty Development Corp., RB, Goldman</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sachs Headquarters, 5.25%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">243,410</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Energy Research &amp; Development</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB, AMT, 4.70%, 6/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,503,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Port Authority of New York &amp; New Jersey, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Continental, Eastern Project, LaGuardia, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9.13%, 12/01/15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,310</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,311,787</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suffolk County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, KeySpan, Port Jefferson, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 6/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,291,575</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,361,275</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 35.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of New York New York, GO:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A-1, 4.75%, 8/15/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">515,815</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 5.75%, 12/01/11 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,331,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series G-1, 6.25%, 12/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">282,087</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Sub-Series I-1, 5.38%, 4/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">473,557</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hudson Yards Infrastructure Corp., RB, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 2/15/47</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">312,294</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">PILOT, Queens Baseball Stadium:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AGC), 6.38%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">110,619</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">447,755</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 1/01/46</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,050</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,796,927</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transit Authority, Metropolitan</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transportation Authority, Triborough Bridge &amp; Tunnel,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">COP, Series A (AMBAC), 5.25%, 1/01/10 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,131,450</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Transitional Finance Authority, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2008, Series S-1, 4.50%, 1/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">464,435</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series S-3, 5.25%, 1/15/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,329,861</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Future Tax Secured, Series B, 5.00%, 11/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,139,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series S-2 (MBIA), 4.50%, 1/15/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,371,475</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series S-2 (MBIA), 4.25%, 1/15/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">219,708</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Convention Center Operating Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,812,590</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,739,503</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 25.3%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Albany Industrial Development Agency, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New Covenant Charter School Project, Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 5/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">345</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">233,527</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.00%, 5/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">220</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138,164</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dutchess County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bard College Civic Facility, Series A-2,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.50%, 8/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">755</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">568,047</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vassar College Project, 5.35%, 8/01/11 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,386,720</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Geneva Industrial Development Agency, New York,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Hobart &amp; William Smith Project, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 2/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,256,370</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Herkimer County Industrial Development Agency,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, College Foundation Inc. Student</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Housing, 6.25%, 8/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">385</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">331,435</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=64%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (continued)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 25.3% (continued)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB (ACA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lycee Francais De NY Project, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 6/01/23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,382,550</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Polytechnic University Project, 5.25%, 11/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">368,626</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Trust for Cultural Resources, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Juilliard School, Series A, 5.00%, 1/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,050</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,085,542</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Liberty Development Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">National Sports Museum Project, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.13%, 2/15/19 (b)(c)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">675</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">675</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.83%, 7/01/39 (d)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173,869</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, Brooklyn Law School, Series B (Syncora),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 7/01/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,869,900</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured, New School University (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,426,639</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mount Sinai School Medical New York University</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.00%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495,665</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Rochester Institute of Technology, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">666,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Teachers College, 5.50%, 3/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">669,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Rochester, Series A, 5.13%, 7/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254,135</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Brooklyn Law School, 5.75%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">252,220</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,560,168</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 15.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clarence Industrial Development Agency, RB, Bristol</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Village Project (GNMA), 6.00%, 1/20/44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,690</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,760,253</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Genesee County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, United Memorial Medical Center</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project, 5.00%, 12/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">170,612</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Industrial Development Agency, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Eger Harbor Project, Series A (GNMA):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.95%, 11/20/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">980</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">967,534</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.88%, 5/20/44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">975</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,019,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FHA, Insured Mortgage, Saint Barnabas, Series A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(AMBAC), 5.00%, 2/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,514,520</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FHA, NY &amp; Presbyterian Hospital (FSA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 2/15/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">425</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">435,404</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Kateri Residence, 5.00%, 7/01/22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,050,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Hospital Medical Center Queens, FHA,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.75%, 2/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">315</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">272,929</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Association for Retarded Children</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc., Series A, 6.00%, 7/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">359,646</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Shore Long Island Jewish Health System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 5/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">736,343</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NYU Hospital Center, Series B, 5.63%, 7/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">530</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">488,469</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">North Shore Long Island Jewish Health System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series E, 5.50%, 5/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">492,155</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Saratoga County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Saratoga Hospital Project, Series B,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 12/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">309,698</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Suffolk County Industrial Development Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, Refunding RB, Jefferson&#146;s Ferry Project,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">450</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">377,024</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,953,957</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 3.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Housing Development Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series J-2, Series A, AMT, 4.75%, 11/01/27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,420</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,337,413</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State HFA, RB, Highland Ave Senior</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Apartments, Series A, AMT, 5.00%, 2/15/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">874,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,212,353</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">37</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_40"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (continued)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 5.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Dormitory Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Series B, 5.75%, 3/15/36</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 328,818</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Health Facilities, Lease, Sub-Series 2-4,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.75%, 1/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">983,280</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Urban Development Corp., RB, State</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Personal Income Tax, Series B, 5.00%, 3/15/35</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,027,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State of New York, GO, Series A, 5.00%, 2/15/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">514,410</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,854,448</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 11.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Counties Tobacco Trust III, RB, Tobacco</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Settlement Pass Thru, Turbo, 6.00%, 6/01/43</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,535</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,146,790</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">TSA South Carolina Inc., New York, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tobacco Settlement Asset Backed, Series 1,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/15/12 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,650,650</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,797,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 15.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series 2008C, 6.50%, 11/15/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">845,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.00%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,020,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B, 4.50%, 11/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">458,850</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Transportation Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.125%, 1/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,017,460</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured (MBIA), 5.25%, 11/15/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,261,625</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Triborough Bridge &amp; Tunnel Authority, New York, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">General Purpose, Series A, 5.00%, 1/01/32</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">151,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,754,867</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 13.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long Island Power Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CAB (FSA), 5.20%, 6/01/28 (e)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,515</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,431,203</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 4/01/24</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">536,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 6.25%, 4/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,876</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C (CIFG), 5.25%, 9/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,054,800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB,:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Second General Resolution (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.50%, 6/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">807,288</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.13%, 6/15/34</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,053,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York State Environmental Facilities Corp.,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, RB, Revolving Funds, New York City</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Water, Series A, 5.00%, 6/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,548,345</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,599,692</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in New York</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">102,833,703</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Guam &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Territory of Guam, RB, Section 30, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 12/01/34</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">457,753</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Territory of Guam, GO, Series A, 7.00%, 11/15/39</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">485</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">486,329</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Guam Economic Development &amp; Commerce</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB, Tobacco Settlement Asset Backed,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 6/01/47</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">284,062</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 0.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Guam Government Waterworks Authority, RB, Water,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.88%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">354,332</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Guam</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,582,476</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=15%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 5.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 5.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust (f)(g):</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 5/15/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,543,425</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 5/15/15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">509,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 5/15/19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,026,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.30%, 5/15/19</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,031,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,111,230</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 6.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 1.5%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico HFA, RB, Sub, Capital Fund</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Modernization, 5.13%, 12/01/27</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,015,750</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB, CAB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.14%, 8/01/54 (e)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270,100</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 0.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Children&#146;s Trust Fund, RB, Asset Backed Bonds,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 5/15/43</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">381,485</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 3.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Highway &amp; Transportation Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D, 5.38%, 7/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,220,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 0.7%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Electric Power Authority, Refunding RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series VV (MBIA), 5.25%, 7/01/29</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506,130</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,393,505</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 162.9%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,920,914</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (h)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 0.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York City Municipal Water Finance Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fiscal 2009, Series A, 5.75%, 6/15/40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,775</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,775</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;113,989,234) &#151; 163.3%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,182,689</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund, 0.04% (i)(j)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">756,077</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">756,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;756,077) &#151; 1.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">756,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;114,745,311*) &#151; 164.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,938,766</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 0.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,684</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (0.2)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(160,021)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (64.2)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(44,478,156)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,315,273</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">38 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_41"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 114,432,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,426,962</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,080,983)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (654,021)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) US government securities, held in escrow, are used to pay interest on this security as</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">well as to retire the bond in full at the date indicated, typically at a premium to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Non-income producing security.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Issuer filed for bankruptcy and/or is in default of interest payments.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Represents a step-up bond that pays an initial coupon rate for the first period and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">then a higher coupon rate for the following periods. Rate shown is as of report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Represents a zero-coupon bond. Rate shown reflects the current yield as of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">report date.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(f) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(g) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(h) Securities represent bonds transferred to a tender option bond trust in exchange</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for which the Trust acquired residual interest certificates. These securities serve</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as collateral in a financing transaction. See Note 1 of the Notes to Financial</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements for details of municipal bonds transferred to tender option bond trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(i) Investments in companies considered to be an affiliate of the Trust, for purposes of</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Section 2(a)(3) of the Investment Company Act of 1940, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=2%></TD>
     <TD width=56%></TD>
     <TD width=21%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Affiliate</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Activity</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">CMA New York Municipal Money Fund</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(90,357)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12,844</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) Represents the current yield as of report date.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149;</FONT>&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=3>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On September 1, 2008, the Trust adopted Financial Accounting Standards Board</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measurements&#148;</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a framework for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">measuring fair values and requires additional disclosures about the use of fair value</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">measurements. Various inputs are used in determining the fair value of investments,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=78%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; Short-Term Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 756,077</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,182,689</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 113,938,766</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">39</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009 </FONT><B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Virginia &#151; 120.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 13.6%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chesterfield County EDA, RB, Virginia Electric Power Co.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project, Series A, AMT, 5.60%, 11/01/31</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 461,240</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Isle Wight County IDA, Virginia, RB, Series A, AMT,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.70%, 11/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,300</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,144,585</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">King George County IDA, Virginia, RB, Waste</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management Inc., Series A, AMT, 6.00%, 6/01/23</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">506,700</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Louisa IDA, RB, Virginia Electric &amp; Power Co. Project,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.38%, 11/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,078,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,191,005</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 25.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Celebrate North Community Development Authority</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Special Assessment Revenue, Special Assessment,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Celebrate Virginia North Project, Series B,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 3/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,497</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,103,828</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">City of Hampton Virginia, GO, Public Improvement,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 4/01/20</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,077,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">County of Prince William Virginia, RB, 5.00%, 12/01/21</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,275</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,338,674</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dulles Town Center Community Development Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia, Special Assessment, Dulles Town Center</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Project, 6.25%, 3/01/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">955</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">780,034</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fairfax County, RB, Redevelopment &amp; Housing Authority</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revenue, 5.00%, 10/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,521,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">White Oak Village Shops Community Development</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, Special Assessment, Special Assessment,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%, 3/01/17</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">232,273</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,054,039</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 7.3%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia College Building Authority, Virginia, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Washington &amp; Lee University Project (MBIA):</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 1/01/26</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">578,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 1/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,139,960</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,718,935</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 18.8%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Danville IDA, Virginia, RB, Danville Regional Medical</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Center (AMBAC), 5.25%, 10/01/28 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,707,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fairfax County Economic Development Authority, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Goodwin House, Inc., 5.00%, 10/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">852,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Henrico County EDA, Virginia, RB, Bon Secours Health,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.60%, 11/15/30</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,440</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,443,211</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.60%, 11/15/30 (b)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">60</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,185</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peninsula Ports Authority, Refunding RB, Virginia</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Baptist Homes, Series C, 5.40%, 12/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">344,095</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,414,651</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 17.2%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia HDA, RB, Rental Housing, Non Ace, Series B,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 6/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,032,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia HDA, RB, Series H, Sub-Series H-1 (MBIA),</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 7/01/36</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,019,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,051,230</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 8.4%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia College Building Authority, Virginia, RB, Public</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Higher Education Financing Program, Series A,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,038,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia Public School Authority, Virginia, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School Financing:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1997 Resolution, Series B, 5.25%, 8/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">532,185</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%, 12/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">408,996</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,980,101</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=61%></TD>
     <TD width=6%></TD>
     <TD width=11%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Virginia (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 12.1%</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=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Norfolk Airport Authority, Virginia, RB, Series A (MBIA),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,491,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Richmond Metropolitan Authority, Virginia, Refunding RB</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(MBIA), 5.25%, 7/15/22</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,343,738</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,834,858</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Utilities &#151; 17.0%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fairfax County Water Authority, Refunding RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 4/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,205</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,233,667</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia Resources Authority, Virginia, RB, Infrastructure</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Revenues, 5.13%, 5/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">635</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">652,316</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia Resources Authority, Virginia, RB, Senior,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia Pooled Financing Program, Series B,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 11/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,095,760</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,981,743</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Virginia</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,226,562</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">District of Columbia &#151; 7.7%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transportation &#151; 7.7%</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 colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Washington Airports Authority, RB, Series B:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,029,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AMT (FSA), 5.00%, 10/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,784</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Washington DC Airports Authority Dulles</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Toll Road Revenue, RB, First Senior Lien, Series A:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">290,328</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 10/01/44</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">461,012</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in District of Columbia</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,799,624</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Guam &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">County/City/Special District/School District &#151; 0.9%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Territory of Guam, RB, Section 30, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.63%, 12/01/29</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199,382</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Guam</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">199,382</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Multi-State &#151; 6.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 6.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.20%, 11/15/14 (c)(d)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,623,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Multi-State</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,623,090</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 4.9%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tobacco &#151; 4.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Children&#146;s Trust Fund, RB, Asset Backed Bonds,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.38%, 5/15/33</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,215</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,157,822</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,157,822</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 140.6%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,006,480</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">40 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_43"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (e)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Virginia &#151; 13.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 8.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Virginia, Refunding RB, 5.00%, 6/01/40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,075,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 4.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Fairfax County IDA, Virginia, RB, Health Care,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inova Health System, Series A, 5.50%, 5/15/35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">999</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,037,291</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 13.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,113,231</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;35,492,713*) &#151; 153.8%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,119,711</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 2.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">539,109</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (6.4)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,500,100)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (49.7)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(11,675,623)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,483,097</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 33,878,917</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,617,731</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(876,228)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 741,503</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) Security is collateralized by Municipal or US Treasury Obligations.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) US government securities, held in escrow, are used to pay interest on this security</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">These securities may be resold in transactions exempt from registration to qualified</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional investors.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) Security represents a beneficial interest in a trust. The collateral deposited into the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">trust is federally tax-exempt revenue bonds issued by various state or local govern-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, or their respective agencies or authorities. The security is subject to remarket-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing prior to its stated maturity, and is subject to mandatory redemption at maturity.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(e) Securities represent bonds transferred to a tender option bond trust in exchange for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which the Trust acquired residual interest certificates. These securities serve as col-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lateral in a financing transaction. See Note 1of the Notes to Financial Statements</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for details of municipal bonds transferred to tender option bond trusts.</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT></P>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On September 1, 2008, the Trust adopted Financial Accounting Standards Board</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statement of Financial Accounting Standards No. 157, &#147;Fair Value Measurements&#148;</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;FAS 157&#148;). FAS 157 clarifies the definition of fair value, establishes a framework for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">measuring fair values and requires additional disclosures about the use of fair value</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">measurements. Various inputs are used in determining the fair value of investments,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=79%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 36,119,711</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 36,119,711</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">41</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_44"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments </FONT><FONT color="#0035c4" size=2 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">August 31, 2009</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Tax-Exempt Trust (MHE)</FONT></B><BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=5%></TD>
     <TD width=12%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Massachusetts &#151; 135.3%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Corporate &#151; 1.9%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Development Finance Agency, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ogden Haverhill, Series A, AMT, 6.70%, 12/01/14</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 555</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 535,009</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education &#151; 91.2%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Development Finance Agency, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston University, Series P, 5.45%, 5/15/59</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,494,255</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston University, Series T-1 (AMBAC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/39</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">942,910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Clark University (Syncora), 5.13%, 10/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">503,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">College Issue, Series B (Syncora), 5.25%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">860</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">860,825</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">College Pharmacy &amp; Allied Health, Series D (AGC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 7/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">518,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education, Belmont Hill School,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/01/11 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,199,209</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Education Facilities Academy Pacific Rim, Series A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(ACA), 5.13%, 6/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">658,380</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pharmacy &amp; Allied Health Sciences,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,165,530</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Smith College, 5.00%, 7/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,024,060</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">WGBH Educational Foundation, Series A (AMBAC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 1/01/42</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,100</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,149,808</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Western New England, Series A (AGC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">241,197</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wheeler School Issue, 6.50%, 12/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">540</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">540,443</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wheelock College, Series C, 5.25%, 10/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">830,620</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Williston Northampton School Project (Syncora),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/25</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">463,440</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Worcester Polytechnic Institute (MBIA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/01/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,013,743</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Educational Facilities</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berklee College Music, Series A, 5.00%, 10/01/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,004,580</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston College, Series N, 5.13%, 6/01/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,014,070</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harvard University, Series FF, 5.13%, 7/15/37</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">866,227</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Learning Center Deaf Children, Series C,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.13%, 7/01/29</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">374,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Northeastern University, Series R, 5.00%, 10/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">225</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">223,432</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Simmons College, Series F (FGIC),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/13 (a)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,138,540</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tufts University, 5.38%, 8/15/38</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,063,890</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Mass, Series C (MBIA),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.13%, 10/01/34</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">230,347</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wellesley College, 5.00%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,536,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Educational Facilities</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, Refunding RB, Tufts University, Series M,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.50%, 2/15/27</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,163,740</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Educational Facilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority Wheaton College, Series D, 6.00%, 1/01/18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,040</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">967,606</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts State College Building Authority, RB,</FONT>&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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A (AMBAC), 5.00%, 5/01/31</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989,490</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts State College Building Authority,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Refunding RB, Series B (Syncora), 5.50%, 5/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">825</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">881,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,060,113</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &#151; 35.6%</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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Development Finance Agency, RB:</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Mortgage, Brookhaven, Series A (Radian),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 3/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,250</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">949,837</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Mortgage, Edgecombe Project, Series A,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.75%, 7/01/21</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">855</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">848,032</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Mortgage, Overlook Community, Series A,</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.13%, 7/01/24</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">662,932</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Seven Hills Foundation &amp; Affiliates (Radian),</FONT>&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; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/01/35</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">414,625</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=63%></TD>
     <TD width=16%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Massachusetts (concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health (concluded)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Educational Facilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Baystate Medical Center, Series F,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,002,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkshire Health System, Series E,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.25%, 10/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">332,339</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Berkshire Health System, Series F (AGC),</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 10/01/19</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,015,940</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Caregroup, Series E-1, 5.00%, 7/01/28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">457,705</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Healthcare System, Covenant, 6.00%, 7/01/22</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">630</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">648,157</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Healthcare System, Covenant, 6.00%, 7/01/31</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">315</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318,194</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Lahey Clinic Medical Center, Series D,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.25%, 8/15/37</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">895,190</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Milford, Whitinsville Hospital, Series D,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.35%, 7/15/12 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">859,763</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Predefining, Healthcare System, Covenant,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%, 1/01/12 (a)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">255</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">286,314</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Valley Regional Health System, Series C,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.75%, 7/01/18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">395</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,542</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Educational Facilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, Refunding RB, Christopher House, Series A,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.88%, 1/01/29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">480</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">408,518</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Industrial Finance Agency, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Age Institute of Mass Project, 8.05%, 11/01/25</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">695</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">695,125</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,170,713</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Housing &#151; 3.4%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts HFA, Massachusetts, RB, Housing,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series F, AMT, 5.70%, 6/01/40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">977,220</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 3.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Development Finance Agency,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">RB, Education, Middlesex School Project,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.00%, 9/01/33</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">399,444</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts State College Building Authority, RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A, 5.50%, 5/01/39</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">523,235</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">922,679</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Massachusetts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,665,734</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Puerto Rico &#151; 3.6%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 3.6%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Puerto Rico Sales Tax Financing Corp., RB,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">First Sub-Series A, 5.75%, 8/01/37</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,025,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds in Puerto Rico</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,025,010</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds &#151; 138.9%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,690,744</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts (b)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Massachusetts &#151; 7.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">State &#151; 7.2%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts School Building Authority, RB, Series A</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(FSA), 5.00%, 8/15/30</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,010</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,074,257</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Municipal Bonds Transferred to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tender Option Bond Trusts &#151; 7.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,074,257</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Long-Term Investments</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;42,485,243) &#151; 146.1%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,765,001</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT><BR>
<BR>
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">42 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Schedule of Investments (concluded)</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Tax-Exempt Trust (MHE)</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=62%></TD>
     <TD width=15%></TD>
     <TD width=21%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Par</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(000)</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Value</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=right style="border-bottom:1px solid #000000;">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Massachusetts &#151; 4.2%</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Educational Facilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Authority, RB, VRDN, Partners Healthcare System,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D -1, 0.10%, 9/01/09 (c)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,200,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Short-Term Securities</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Cost &#151; &#36;1,200,000) &#151; 4.2%</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investments (Cost &#151; &#36;43,685,243*) &#151; 150.3%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,965,001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Assets Less Liabilities &#151; 19.1%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,452,012</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability for Trust Certificates, Including Interest</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expense and Fees Payable &#151; (4.7)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,340,505)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares, at Redemption Value &#151; (64.7)%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(18,501,468)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shares &#151; 100.0%</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,575,040</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The cost and unrealized appreciation (depreciation) of investments as of August 31,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, as computed for federal income tax purposes, were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=57%></TD>
     <TD width=42%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate cost</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 42,327,871</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized appreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,212,636</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Gross unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,915,101)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (702,465)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(a) US government securities, held in escrow, are used to pay interest on this security</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as well as to retire the bond in full at the date indicated, typically at a premium</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to par.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(b) Securities represent underlying bonds transferred to a tender option bond trust</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in exchange for which the Trust acquired residual interest certificates. These securi-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties serve as collateral in a financing transaction. See Note 1 of the Notes to</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Statements for details of Municipal Bonds Transferred to Tender Option</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Bond Trusts.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) Security may have a maturity of more than one year at time of issuance, but has</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">variable rate and demand features that qualify it as a short-term security. The rate</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shown is as of report date and maturity shown is the date the principal owed can</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be recovered through demand.</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For Trust compliance purposes, the Trust&#146;s sector classifications refer to any one</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or more of the sector sub-classifications used by one or more widely recognized</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market indexes or ratings group indexes, and/or as defined by Trust management.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This definition may not apply for purposes of this report, which may combine sector</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sub-classifications for reporting ease.</FONT></P>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial Accounting Standards Board Statement of Financial Accounting Standards</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">No. 157, &#147;Fair Value Measurements&#148; clarifies the definition of fair value, establishes</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a framework for measuring fair values and requires additional disclosures about the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">use of fair value measurements. Various inputs are used in determining the fair</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of investments, which are as follows:</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1 &#151; price quotations in active markets/exchanges for identical securities</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2 &#151; other observable inputs (including, but not limited to: quoted prices for</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">similar assets or liabilities in markets that are active, quoted prices for identical</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or similar assets or liabilities in markets that are not active, inputs other than</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">quoted prices that are observable for the assets or liabilities (such as interest</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default rates) or other market-corroborated inputs)</FONT><BR>
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3 &#151; unobservable inputs based on the best information available in the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">circumstances, to the extent observable inputs are not available (including the</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s own assumptions used in determining the fair value of investments)</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The inputs or methodology used for valuing securities are not necessarily an indica-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of the risk associated with investing in those securities. For information about</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust&#146;s policy regarding valuation of investments and other significant accounting</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">policies, please refer to Note 1 of the Notes to Financial Statements.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the inputs used as of August 31, 2009 in determin-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the fair valuation of the Trust&#146;s investments:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=54%></TD>
     <TD width=45%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investments in</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Valuation Inputs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 1</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 2:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-Term Investments</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 41,765,001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Short-Term Securities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total Level 2</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,965,001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Level 3</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 42,965,001</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See above Schedule of Investments for values in each sector.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(Percentages shown are based on Net Assets)</FONT></B></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">43</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California Insured</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California</FONT></B>&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BCK)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BZA)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BCL)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Assets</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; unaffiliated</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,138,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 77,254,481</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 168,606,847</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at value &#151; affiliated</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,412,842</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,649,532</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,042,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,146</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,609</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,791</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Cash collateral on futures</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments sold receivable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,044,717</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,556,349</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,578,333</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest receivable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,288,795</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,006,338</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,169,782</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income receivable &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">55</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prepaid expenses</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">59,265</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,598</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,514</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other assets</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,805</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,676</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,506</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total assets</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">118,966,583</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">84,621,610</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">180,494,709</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accrued Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments purchased payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,040,517</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,793,816</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income dividends payable &#151; Common Shares</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">348,354</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">262,545</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">595,984</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,964</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73,120</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,233</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,427</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,358</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer&#146;s and Trustees&#146; fees payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,758</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,550</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,552</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other affiliates payable</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">388</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">270</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">608</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other accrued expenses payable</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">68,196</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,583</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,474</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total accrued liabilities</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,519,410</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,167,886</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">774,096</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Other Liabilities</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust certificates</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,989,205</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,508,477</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,186,647</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Liabilities</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,508,615</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,676,363</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,960,743</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred Shares at Redemption Value</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred shares at liquidation preference, plus unpaid dividends</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,5,6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31,325,412</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,450,295</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,553,285</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,132,556</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,494,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,980,681</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders Consist of</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,8,9</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 74,841,236</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 48,409,787</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 113,492,176</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">817,640</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">686,783</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,708,581</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,736,764)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(452,672)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,861,101)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">210,444</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">851,054</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">641,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,132,556</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,494,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,980,681</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value per Common Share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.86</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.75</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at cost &#151; unaffiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 111,928,541</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,403,427</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 167,965,822</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments at cost &#151; affiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,412,842</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,649,532</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,042,881</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Represents short-term floating rate certificates issued by tender option
bond trusts.</FONT>&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; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding:</FONT>&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; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Par value &#36;0.001 per share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,253</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">898</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,862</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Par value &#36;0.01 per share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Par value &#36;0.10 per share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares at liquidation preference</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares authorized</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares outstanding</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,278,087</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,409,668</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,999,789</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Par value per Common Share</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares authorized</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">44 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Maryland</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MuniHoldings</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New Jersey</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York Insured</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Virginia</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Massachusetts</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &amp; Education</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insured Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust II</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tax-Exempt Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BZM)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(MHN)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BLJ)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BSE)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BQH)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BFY)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BHV)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(MHE)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,238,082</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 710,336,512</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,292,812</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 135,120,785</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,879,560</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 113,182,689</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 36,119,711</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 42,965,001</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,200,364</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,049,821</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">650,601</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,311,074</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,137,340</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">756,077</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,228</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,484</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,582</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,273</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,646</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47,913</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">169,589</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,053,560</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,757,199</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,001,659</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">257,331</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">559,847</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,114,766</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">709,975</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,537,329</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">834,440</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,413,436</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">547,446</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">617,160</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,281</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,604</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,948</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,207</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,249</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,839</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,271</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,071</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,805</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,193</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">43,250</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,902</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,844</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,147</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,860</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,893</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,044,348</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">728,387,261</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,704,107</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">140,038,582</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64,876,660</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">115,671,615</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,853,733</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">48,637,590</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,762,245</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">337,936</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">678,024</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,211,218</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">139,217</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,017,082</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">174,350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">424,304</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">215,402</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">383,020</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">124,840</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">138,300</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,020</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">281,513</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,826</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,833</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,601</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47,461</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,317</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,313</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,884</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">251,155</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">333</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,458</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,862</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">809</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">910</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,170</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,729</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,693</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,979</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,812</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">124</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">150</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,445</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">165</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">460</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">212</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">378</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">120</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">64,376</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">116,324</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65,536</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,876</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66,321</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,276</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,011</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,682</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">233,632</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,474,934</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">267,939</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">911,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">996,401</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,718,246</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">195,722</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">221,487</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,500,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57,289,626</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">419,783</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,408,504</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,549,115</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">159,940</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,499,291</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,339,595</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,733,632</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">61,764,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">687,722</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,320,064</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,545,516</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,878,186</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,695,013</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,561,082</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,000,854</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">243,639,996</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,776,919</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,577,165</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,126,939</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,478,156</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,675,623</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,501,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,309,862</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 422,982,705</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,239,466</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,141,353</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,204,205</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,315,273</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,483,097</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,575,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,040,358</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 456,812,829</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,734,431</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 91,891,494</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 39,203,132</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,079,093</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,164,135</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,683,932</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">331,145</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,762,952</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">421,041</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,109,388</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">539,568</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,196,487</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">407,862</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">508,820</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(426,916)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(30,559,159)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(376,825)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,377,390)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">95,830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,153,762)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">284,102</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(897,470)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(634,725)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,033,917)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,539,181)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,482,139)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365,675</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(806,545)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">626,998</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(720,242)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,309,862</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 422,982,705</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,239,466</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,141,353</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,204,205</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,315,273</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,483,097</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,575,040</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.81</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.74</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.53</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.61</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.56</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.05</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.19</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,872,807</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 719,370,429</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,831,993</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 136,602,924</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,513,885</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 113,989,234</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 35,492,713</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,685,243</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,200,364</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,049,821</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 650,601</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,311,074</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,137,340</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 756,077</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; &#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">751</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,623</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">885</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,779</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">467</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">370</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,745</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,520</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,050,319</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,795,138</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,309,276</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,477,918</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,761,563</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,942,197</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,560,507</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,344,067</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 0.01</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200 million</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unlimited</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">45</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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     <TD width=58%></TD>
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<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Operations</FONT>&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 align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California Insured</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">California</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust II</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31, 2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BCK)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BZA)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BCL)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Income</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,606,991</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,275,106</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,355,099</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Income &#150; affiliated</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,673</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,680</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41,994</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,644,664</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,290,786</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,397,093</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expenses</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment advisory</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">609,274</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">490,448</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">939,775</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commissions for Preferred Shares</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,401</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">49,997</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104,776</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professional</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">53,370</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,458</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,880</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting services</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,371</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,753</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,186</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Transfer agent</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,755</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,637</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,229</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Printing</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,507</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,454</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,934</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Registration</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,170</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,166</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,169</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer and Trustees</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,951</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,369</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,643</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Custodian</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,452</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,757</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11,584</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Miscellaneous</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,776</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">38,556</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,375</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses excluding interest expense and fees</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850,027</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">703,595</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,272,551</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">117,225</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,428</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">139,795</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">967,252</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">734,023</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,412,346</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees waived by advisor</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(143,969)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(148,468)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(194,079)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Less fees paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">823,283</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">585,555</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,218,267</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,821,381</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,705,231</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,178,826</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss) from:</FONT>&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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,353,991)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,787</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,560,394)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts and forward interest rate swaps</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,468</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,574</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(474,263)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,324,523)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,361</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,034,657)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation on:</FONT>&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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(334,427)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,741,282)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,917,773)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts and forward interest rate swaps</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,543</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(334,427)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,741,282)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,542,230)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,658,950)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,690,921)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,576,887)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Preferred Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(627,459)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(463,959)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(992,162)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,924)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(627,459)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(468,883)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(992,162)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,534,972</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,545,427</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,609,777</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Related to tender option bond trusts.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">46 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Maryland</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MuniHoldings</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New Jersey</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York Insured</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Virginia</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Massachusetts</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">New York</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Health &amp; Education</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insured Fund, Inc.</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust II</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Tax-Exempt Trust</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BZM)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(MHN)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BLJ)</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BSE)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BQH)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BFY)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(BHV)</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(MHE)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,326,498</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 34,217,027</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,761,249</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,754,852</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,459,159</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,943,076</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,892,002</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,335,184</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,799</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">86,696</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,373</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,716</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,072</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,765</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">581</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,355,297</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,303,723</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,793,622</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,767,568</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,462,231</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,956,841</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,892,583</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,335,184</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">281,784</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,833,369</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">308,874</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">722,693</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">394,495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">596,222</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,484</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">228,428</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,262</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">462,021</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">34,491</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">75,643</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,127</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80,594</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,606</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33,726</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,878</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101,626</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,687</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56,152</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">45,431</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54,069</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,320</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,882</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,796</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">200,647</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,684</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,193</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,465</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,072</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,183</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,914</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">63,149</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,581</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,220</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17,804</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,826</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,391</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,754</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,107</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,925</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,948</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,289</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,048</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,387</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,870</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,235</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">810</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,500</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">913</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,178</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,166</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,957</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">617</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">928</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,172</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">58,366</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,513</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,339</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,946</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,939</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,614</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,611</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,845</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,625</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,238</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,598</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,704</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,558</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,403</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,621</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">107,534</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,954</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44,119</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37,783</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">46,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36,757</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14,312</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">442,814</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,912,762</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">476,883</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">989,424</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">576,969</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850,086</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">354,400</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28,936</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,138,777</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,399</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">227,866</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,727</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">147</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,443</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21,859</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">471,750</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,051,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">483,282</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,217,290</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">596,696</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">850,233</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">372,843</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">398,052</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,850)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(800,017)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(98,919)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(155,036)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(115,923)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(110,703)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(63,057)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(58)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(69)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(498)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">386,900</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,251,522</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384,363</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,062,196</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">480,773</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">739,530</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">309,717</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">397,554</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,968,397</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,052,201</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,409,259</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,705,372</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,981,458</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,217,311</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,582,866</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,937,630</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(403,175)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,788,009)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(102,603)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,559,414)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">158,284</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(106,700)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300,733</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(495,998)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">67,701</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12,943</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,974</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(99,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(403,175)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,720,308)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(102,603)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,546,471)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164,258</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(95,748)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300,733</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(594,998)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(968,568)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,828,468)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,440,583)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,905)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(841,495)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,684,868)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,780</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(481,570)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">83,017</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(968,568)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,828,468)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,440,583)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,905)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(841,495)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,684,868)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,780</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(398,553)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,371,743)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,548,776)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,543,186)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,581,376)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(677,237)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,780,616)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">304,513</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(993,551)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(267,792)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,263,541)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(322,491)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(700,402)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(371,954)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(757,706)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(153,097)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(315,726)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,362)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,799)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,115)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(270,154)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,263,541)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(322,491)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(700,402)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(375,753)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(757,706)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(237,212)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(315,726)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 326,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15,239,884</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 543,582</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,423,594</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,928,468</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,678,989</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,650,167</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 628,353</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">47</FONT></P>

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<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Insured</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Income Trust (BCK)</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust (BZA)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,821,381</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,029,423</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,705,231</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,804,585</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,324,523)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(696,593)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,361</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16,331</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(334,427)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,327,135)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,741,282)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,372,393)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(627,459)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,418,583)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(463,959)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,029,626)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,924)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets applicable to Common Shareholders resulting</FONT>&nbsp;</TD>
	<TD 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=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,534,972</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">587,112</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,545,427</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,418,897</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Common Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,705,217)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,641,581)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,690,228)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,103,983)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,946)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,705,217)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,641,581)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,700,174)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,103,983)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of common dividends</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,225</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">351,551</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total decrease in net assets applicable to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,170,245)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,035,244)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,154,747)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,333,535)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">74,302,801</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">77,338,045</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">50,649,699</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,983,234</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,132,556</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 74,302,801</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,494,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,649,699</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 817,640</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 330,965</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 686,783</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 135,745</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">48 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
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     <TD width=13%></TD>
     <TD width=13%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New Jersey</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income Trust II (BCL)</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Bond Trust (BZM)</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Insured Fund, Inc. (MHN)</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust (BLJ)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,178,826</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,516,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,968,397</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,187,858</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,052,201</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 30,229,458</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,409,259</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,624,072</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,034,657)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(240,663)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(403,175)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,367</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,720,308)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,358,744)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(102,603)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(274,414)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,542,230)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,181,675)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(968,568)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(801,629)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,828,468)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,569,389)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,440,583)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,291,456)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(992,162)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,305,653)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(267,792)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(575,579)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,263,541)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(9,817,592)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(322,491)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(675,482)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,362)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,561)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,860)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,609,777</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,211,471)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">326,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">852,456</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15,239,884</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,483,733</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">543,582</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(624,140)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,891,844)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,207,529)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,621,017)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,770,800)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,804,641)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,232,405)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,984,969)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,176,081)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,564)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(29,818)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(21,875)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,891,844)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6,207,529)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,627,581)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,800,618)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,804,641)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(20,232,405)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,984,969)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,197,956)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">78,795</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">122,854</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">134,190</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97,042</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">159,974</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,282,067)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7,340,205)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,178,227)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(813,972)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,564,757)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(14,748,672)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,344,345)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,662,122)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">112,262,748</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">119,602,953</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,488,089</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,302,061</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">428,547,462</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">443,296,134</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,583,811</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35,245,933</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;109,980,681</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;112,262,748</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,309,862</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,488,089</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;422,982,705</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;428,547,462</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,239,466</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,583,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,708,581</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 413,761</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 331,145</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 251,763</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,762,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,245,028</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 421,041</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 319,435</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">49</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=68%></TD>
     <TD width=21%></TD>
     <TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Statements of Changes in Net Assets (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Income Trust (BSE)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Increase (Decrease) in Net Assets:</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Operations</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,705,372</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,193,181</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,546,471)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(653,991)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net change in unrealized appreciation/depreciation</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(34,905)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,146,975)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(700,402)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,637,764)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(82,413)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,423,594</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">672,038</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends and Distributions to Common Shareholders From</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,652,443)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,505,354)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(221,583)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Decrease in net assets resulting from dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,652,443)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4,726,937)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Share Transactions</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Reinvestment of common dividends</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">39,052</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72,019</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Assets Applicable to Common Shareholders</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total increase (decrease) in net assets applicable to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,189,797)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,982,880)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,331,150</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">94,314,030</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">End of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,141,353</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 90,331,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,109,388</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 757,900</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">50 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<TR>
     <TD width=9%></TD>
     <TD width=11%></TD>
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     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=11%></TD>
     <TD width=10%></TD>
     <TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Massachusetts Health &amp;</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Education Tax-Exempt Trust (MHE)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Virginia</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=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust (BQH)</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Income Trust II (BFY)</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust (BHV)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1, 2008</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to August 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">December 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,981,458</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,123,151</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,217,311</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,330,243</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,582,866</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,723,577</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,937,630</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,371,557</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,150,393</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">164,258</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">51,106</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(95,748)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(987,855)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">300,733</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">292,759</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(594,998)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(142,627)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(90,387)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(841,495)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,618,246)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,684,868)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,764,010)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,780</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,013,968)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(398,553)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,202,802)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,821,519)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(371,954)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(796,921)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(757,706)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,408,467)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(153,097)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(457,881)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(315,726)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(408,081)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(718,637)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,799)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(19,635)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(35,412)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,115)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,928,468</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">739,455</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,678,989</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,134,499</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,650,167</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">544,487</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">628,353</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(381,953)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(480,150)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,335,251)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,552,826)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,927,976)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,827,367)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,388,620)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,394,947)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,469,268)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(918,874)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,378,312)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10,873)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(62,036)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(84,756)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(247,310)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5,635)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,346,124)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,614,862)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,927,976)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,912,123)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,635,930)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,394,947)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,469,268)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(918,874)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,383,947)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,922</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">318,829</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,276</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19,335</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">121,937</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">144,001</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(398,734)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,556,578)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,228,711)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2,758,289)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">136,174</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(706,459)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(840,915)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,300,827)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,864,097)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,602,939</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">42,159,517</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">70,543,984</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">73,302,273</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23,346,923</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24,053,382</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">29,415,955</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30,716,782</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32,580,879</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,204,205</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,602,939</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,315,273</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,543,984</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,483,097</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,346,923</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,575,040</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,415,955</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 30,716,782</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 539,568</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 265,371</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,196,487</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 664,858</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 407,862</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 433,606</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 508,820</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 356,896</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 323,091</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">51</FONT></P>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.08</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.66</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.24</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.22</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.01</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.91</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.31)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.57)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.59)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.27</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.12)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.27)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.28)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.24)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.48</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.11</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.12</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.73</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Common Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.70)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.69)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.70)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.71)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.90)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.86</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.08</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.66</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.24</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.22</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.94</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.95</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.30</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.61</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.08</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.76%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.76%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.84)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.52%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.53)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22.24%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.43%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.24%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.97%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.97%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.50%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.58%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.72%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.93%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.85%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.87%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.21%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.69%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.63%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.95%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.68%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,133</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 74,303</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 77,338</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 80,418</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 80,289</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,325</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 37,550</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,500</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,500</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">65%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 83,366</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 74,484</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,591</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,241</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,170</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">52 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.85</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.28</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.19</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.67</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.12</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.49)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.41)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.82)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.14)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.26)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.41</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.01</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.48</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.91)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.96)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.96)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.91)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.96)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.96)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.85</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.35</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.19</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.55</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.48</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.50</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.05</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.33</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.33)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.71%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.07%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(6.89)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3.37)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25.31%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.52%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.41%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.03%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.94%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and excluding interest expense and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.94%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.17%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.31%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.08%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.20%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.87%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.15%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.21%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.56%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.32%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,495</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 50,650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 51,983</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 54,801</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 54,265</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,450</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 27,975</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,975</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,975</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,975</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 80,117</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,278</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,364</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,714</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,263</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than &#36;(0.01) per share.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">53</FONT></P>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.96</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.72</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.52</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.77</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.44)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.92)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.74)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.75</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.12)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.25)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.46</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.03</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.69</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Common Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.74)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.78)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.75</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.96</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.72</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.52</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.75</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.70</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.44</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.26</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.84%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.89)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.09%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.93%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20.38%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.39%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7.05)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.38)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.01%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.09%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.40%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.19%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.21%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.21%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.13%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.81%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.46%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.89%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.92%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.44%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.46%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 109,981</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 112,263</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 119,603</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 125,525</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 123,920</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 46,550</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 59,750</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,950</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,950</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,950</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">66%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 84,068</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,981</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,563</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,625</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,063</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">54 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.45</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.91</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.98</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.11</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.24</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.36)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.99)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.08)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.83</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.13)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.28)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.31)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.26)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.17)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.15</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.42</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.22)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.73</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.73</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.85)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.86)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.86)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.88)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.85)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.86)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.86)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.81</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.45</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.91</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.98</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.11</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.75</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.43</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.45</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.96</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.52%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.60%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.85)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.57%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.73%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.53%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.33)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.08%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15.26%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.53%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.83%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.54%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.60%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.32%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.10%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.17%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.32%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.39%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.62%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.87%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.76%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.82%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.89%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.94%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.66%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.58%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.93%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.10%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.77%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,310</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,488</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 30,302</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,354</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,492</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,235</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,083</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,089</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,950</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,138</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than &#36;(0.01) per share.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">55</FONT></P>

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     <TD width=6%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.92</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.40</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.96</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.54</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.41</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.94</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.03</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.52)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.48)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.21</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Preferred Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.14)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.32)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.34)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.17)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.18</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.26</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends to Common Shareholders from net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.66)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.70)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.84)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.95)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.74</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.92</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.40</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.96</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.54</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.89</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.12</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.53</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.62</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.28</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.74%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.12%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.63%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(5.72)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.78)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15.66%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.55%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.79%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.73%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.59%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.35%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.52%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.52%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and excluding interest expense and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.65%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.94%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.71%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.29%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.93%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.66%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.36%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.01%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.62%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 422,983</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 428,547</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 443,296</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 460,638</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 478,413</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 243,625</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 252,875</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 313,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 313,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 313,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">33%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,407</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,379</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 60,422</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 61,799</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,214</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amounts have been recalculated to conform with current year presentation.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">56 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.16</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.38</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.33</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.26</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.71</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.11)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.18</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.48</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.14)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.24)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.23</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.26)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.49</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.86)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.95)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.95)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.06)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.86)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.96)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.94)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.53</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.16</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.38</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.33</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.26</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.59</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.76</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.90</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.30</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.98</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.50%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.12)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.61)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.77%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17.60%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.23)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(7.15)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.54)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21.74%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22.22%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.72%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.59%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.57%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.03%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.10%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.36%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.26%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.55%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.11%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.44%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.79%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.50%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.98%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.41%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.67%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.32%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.74%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.46%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,239</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,584</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 35,246</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 37,263</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 36,928</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,775</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,225</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,225</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">35%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,600</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,439</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,578</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,067</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,649</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than &#36;(0.01) per share.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">57</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=right colspan=6>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.95</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.58</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.34</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.30</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.18</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.88</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.39)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.60)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.72)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.11)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.25)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.26)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.24)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.14)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.38</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.75</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.02</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.72)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.70)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.70)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.71)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.90)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.03)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.05)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.72)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.73)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.75)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.71)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.90)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.61</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.95</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.58</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.34</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.30</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.15</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.26</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.12</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.70</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.35</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.80%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.06)%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.46%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.72%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.07)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.73%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15.92%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.53%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.21%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.93%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.89%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.89%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.59%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.53%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.63%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.77%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.88%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.74%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.69%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.58%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.96%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.85%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.84%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.05%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.81%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 88,141</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 90,331</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 94,314</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 99,255</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 98,853</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,575</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 41,675</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 56,000</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 56,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 56,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 79,309</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 79,196</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,107</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,324</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,138</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT></P>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT></P>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT></P>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">58 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.39</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.02</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.09</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.24)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.57)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.56)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.14)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.25)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.70</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.27</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.86</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.93</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.85)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.92)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.85)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.95)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.92)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.93)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.56</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.71</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.39</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.02</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.09</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.32</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.62</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.32</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.81</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.85</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.62%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.52%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.51%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.56%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.87%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.76)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.60%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.39%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20.83%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.61%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.63%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.56%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.56%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.23%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.06%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.16%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.81%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.60%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.97%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.05%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.55%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.35%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.56%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.23%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,204</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,603</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 42,160</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,541</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 43,460</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,125</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 22,400</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,200</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,200</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,200</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">23%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,431</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,327</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,560</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,985</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,899</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amount is less than (&#36;0.01) per share.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">59</FONT></P>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
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&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.84</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.47</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.23</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.06</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.36)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.55)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.67)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.14</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.29)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.25)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.15)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.55</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.23</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.10</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.95</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.96</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.80)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.77)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.73)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.71)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.89)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.80)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.79)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.73)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.71)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.89)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.28</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.84</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.47</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.23</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.00</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.60</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.22</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.38</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14.02</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.23%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.69%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.93%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.46%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.26%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.08%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.80%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.91%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.25%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.29%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.01%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.05%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.13%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.04%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.17%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.33%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.92%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.96%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.04%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.19%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.94%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.94%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.66%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.99%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.98%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.39%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.98%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.05%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,315</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,544</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 73,302</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,393</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 75,193</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,475</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,650</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 44,650</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">27%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,965</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 64,508</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 66,048</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,775</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,113</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">60 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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     <TD width=49%></TD>
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     <TD width=8%></TD>
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     <TD width=6%></TD>
     <TD width=11%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended August 31,</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.57</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.35</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.34</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.47</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.02</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.10</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.10</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.20</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.45)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.04</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.80</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.10)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.30)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.27)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.26)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.16)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.05)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.02)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.07</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.36</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.14</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.88</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.74</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.89)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.90)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.16)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.05)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.05)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.90)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.92)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.05</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.03</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 15.57</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.35</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.34</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 19.50</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.85</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18.45</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17.30</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.94%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.59%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.21%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.52%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.16)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.97%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.80%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.23%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">19.07%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.75%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.58%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.68%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and before fees paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.14%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.20%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.34%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.18%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest expense</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.37%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.31%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.15%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.18%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.43%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.14%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.85%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.83%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.90%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.72%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.90%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.69%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.60%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.00%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.71%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.16%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.23%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.90%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,483</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,347</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,053</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,097</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 24,966</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;25,000 liquidation preference, end of year (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11,675</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,175</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,525</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,525</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,525</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">32%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;25,000 liquidation preference, end of year</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 75,286</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 72,948</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 69,463</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,404</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 71,158</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">61</FONT></P>

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	<TD align=left>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Financial Highlights</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=5>
<B><FONT color="#0035c4" size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Education Tax-Exempt Trust (MHE)</FONT></B>&nbsp;</TD>
</TR>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Period</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">January 1,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008 to</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended December 31,</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2007</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2006</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2005</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2004</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share Operating Performance</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, beginning of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.55</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.90</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.59</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.74</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.91</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.83</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.59</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.92</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.90</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.83</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.82</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized and unrealized gain (loss)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.43)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.58)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.82)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.47</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.08</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Preferred Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.13)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.17)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.31)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.25)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.11)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.03)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.03)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.01)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net increase (decrease) from investment operations</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.27</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.16)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.21)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.86</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.86</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends and distributions to Common Shareholders from:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.63)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.39)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.59)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.68)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.78)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.87)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net realized gain</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.00)</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.10)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.13)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.16)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total dividends and distributions to Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.63)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.39)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.59)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.78)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.91)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.03)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital charges with respect to issuance of Preferred Shares</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(0.10)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net asset value, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.19</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.55</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.90</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.59</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.74</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Market price, end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12.00</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.22</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 11.95</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.10</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13.60</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16.24</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Investment Return</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on net asset value</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3.29%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.01)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1.23)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.46%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.08%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on market price</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13.73%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2.99)%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(4.40)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.99%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(10.71)%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14.29%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ratios to Average Net Assets Applicable to Common Shares</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.77%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.77%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total expenses after fees waived and paid indirectly and excluding interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expense and fees</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,7</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.73%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.47%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.45%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7.50%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.82%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.78%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.61%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.00%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.97%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends paid to Preferred Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.22%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.03%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.27%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.07%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.76%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.24%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net investment income Common Shareholders</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6.28%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.79%</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.51%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4.54%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.24%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5.73%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Supplemental Data</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net assets applicable to Common Shareholders, end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,575</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,416</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 30,717</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,581</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,792</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 32,076</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares outstanding at &#36;50,000 liquidation preference,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of period (000)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,500</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,000</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Portfolio turnover</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">16%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">21%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Asset coverage per Preferred Share at &#36;50,000 liquidation preference,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">end of period</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 127,234</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 129,523</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 126,835</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 131,484</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 129,506</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;210,378</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8</FONT></SUP>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On September 1, 2004, Fund Asset Management, L.P. became the investment advisor, which
combined with BlackRock, Inc. on September 26, 2006.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based on average shares outstanding.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, may result in substantially different returns. Where applicable,</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Aggregate total investment return.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Do not reflect the effect of dividends to Preferred Shareholders.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Annualized.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option bond trusts.</FONT><BR>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Amounts have been recalculated to conform with current period presentation.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">See Notes to Financial Statements.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">62 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">1. Organization and Significant Accounting Policies:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust (&#147;BCK&#148;), BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MuniHoldings New York Insured Fund, Inc. (&#147;MHN&#148;), BlackRock New York</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured Municipal Income Trust (&#147;BSE&#148;) (collectively the &#147;Insured Trusts&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust (&#147;BZA&#148;), BlackRock Maryland</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust (&#147;BZM&#148;), BlackRock New Jersey Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BLJ&#148;), BlackRock New York Municipal Bond Trust (&#147;BQH&#148;), BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Virginia Municipal Bond Trust (&#147;BHV&#148;) (collectively the &#147;Bond Trusts&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II (&#147;BCL&#148;) and BlackRock New</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">York Municipal Income Trust II (&#147;BFY&#148;) (collectively the &#147;Income II Trusts&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and The Massachusetts Health &amp; Education Tax-Exempt Trust (&#147;MHE&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(all, collectively the &#147;Trusts&#148; or individually as the &#147;Trust&#148;) are registered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as non-diversified, closed-end management investment companies. All</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts are organized as Delaware statutory trusts except MHN and MHE,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which are organized as a Maryland corporation and a Massachusetts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">business trust, respectively. The Trusts&#146; financial statements are prepared</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in conformity with accounting principles generally accepted in the United</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">States of America, which may require the use of management accruals</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and estimates. Actual results may differ from these estimates. The Board of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Directors and the Boards of Trustees of the Trusts are referred to throughout</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">this report as the &#147;Board of Trustees&#148; or the &#147;Board.&#148; Each Trust determines,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and makes available for publication the net asset value of its Common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares on a daily basis.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following is a summary of significant accounting policies followed by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Valuation of Investments: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal investments (including commitments</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to purchase such investments on a &#147;when-issued&#148; basis) are valued on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">basis of prices provided by dealers or pricing services selected under the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">supervision of each Trust&#146;s Board. In determining the value of a particular</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment, pricing services may use certain information with respect to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions in such investments, quotations from dealers, pricing matrixes,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market transactions in comparable investments and information with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respect to various relationships between investments. Swap agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are valued by utilizing quotes received daily by each Trust&#146;s pricing service</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or through brokers, which are derived using daily swap curves and trades</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of underlying securities. Financial futures contracts traded on exchanges</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are valued at their last sale price. Short-term securities with maturities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">less than 60 days may be valued at amortized cost, which approximates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fair value. Investments in open-end investment companies are valued at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net asset value each business day.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the event that application of these methods of valuation results in a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price for an investment which is deemed not to be representative of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market value of such investment or are not available, the investment will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be valued by a method approved by each Trust&#146;s Board as reflecting fair</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value (&#147;Fair Value Assets&#148;). When determining the price for Fair Value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Assets, the investment advisor and/or the sub-advisor seeks to determine</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the price that each Trust might reasonably expect to receive from the cur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rent sale of that asset in an arm&#146;s length transaction. Fair value determina-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions shall be based upon all available factors that the investment advisor</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">subsequently reported to the Board or a committee thereof.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Forward Commitments and When-Issued Delayed Delivery Securities: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts may purchase securities on a when-issued basis and may purchase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or sell securities on a forward commitment basis. Settlement of such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transactions normally occurs within a month or more after the purchase or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sale commitment is made. The Trusts may purchase securities under such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">conditions only with the intention of actually acquiring them, but may enter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into a separate agreement to sell the securities before the settlement date.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since the value of securities purchased may fluctuate prior to settlement,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts may be required to pay more at settlement than the security</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is worth. In addition, the purchaser is not entitled to any of the interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned prior to settlement. When purchasing a security on a delayed-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delivery basis, the Trusts assume the rights and risks of ownership of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">security, including the risk of price and yield fluctuations. In the event of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">default by the counterparty, the Trusts&#146; maximum amount of loss is the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">unrealized gain of the commitment, which is shown on the Schedules</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Investments, if any.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Municipal Bonds Transferred to Tender Option Bond Trusts: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">leverage their assets through the use of tender option bond trusts (&#147;TOBs&#148;).</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A TOB is established by a third party sponsor forming a special purpose</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">entity, into which one or more funds, or an agent on behalf of the funds,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfers municipal bonds. Other funds managed by the investment advisor</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may also contribute municipal bonds to a TOB into which a Trust has con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tributed bonds. A TOB typically issues two classes of beneficial interests:</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">short-term floating rate certificates, which are sold to third party investors,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and residual certificates (&#147;TOB Residuals&#148;), which are generally issued to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the participating funds that made the transfer. The TOB Residuals held by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Trust include the right of the Trust (1) to cause the holders of a propor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tional share of the floating rate certificates to tender their certificates at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">par, and (2) to transfer, within seven days, a corresponding share of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">municipal bonds from the TOB to the Trust. The TOB may also be terminated</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">without the consent of the Trust upon the occurrence of certain events as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">defined in the TOB agreements. Such termination events may include the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bankruptcy or default of the municipal bond, a substantial downgrade in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credit quality of the municipal bond, the inability of the TOB to obtain quar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">terly or annual renewal of the liquidity support agreement, a substantial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">decline in market value of the municipal bond or the inability to remarket</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the short-term floating rate certificates to third party investors.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The cash received by the TOB from the sale of the short-term floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certificates, less transaction expenses, is paid to the Trust, which typically</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">invests the cash in additional municipal bonds. Each Trust&#146;s transfer of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">municipal bonds to a TOB is accounted for as a secured borrowing, there-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fore the municipal bonds deposited into a TOB are presented in the Trust&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Schedules of Investments and the proceeds from the issuance of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">short-term floating rate certificates are shown as trust certificates in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Assets and Liabilities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest income from the underlying security is recorded by the Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on an accrual basis. Interest expense incurred on the secured borrowing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and other expenses related to remarketing, administration and trustee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services to a TOB are reported as expenses of the Trusts. The floating rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certificates have interest rates that generally reset weekly and their holders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have the option to tender certificates to the TOB for redemption at par</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at each reset date. At August 31, 2009, the aggregate value of the underly-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing municipal bonds transferred to TOBs, the related liability for trust</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">63</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certificates and the range of interest rates on the liability for trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certificates were as follows:</FONT></P>
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     <TD width=38%></TD>
     <TD width=19%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=center colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Underlying</FONT></B></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Municipal Bonds</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Liability</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Range of</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transferred</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">for Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">to TOBs</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Certificates</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Rates</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 21,366,590</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10,989,205</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29% &#150; 0.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,730,882</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,508,477</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29% &#150; 0.39%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 42,240,468</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,186,647</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.29% &#150; 0.49%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,101,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,500,000</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.54%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;108,448,315</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;57,289,626</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.30% &#150; 0.84%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 634,533</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 419,783</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.45%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,781,956</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10,408,504</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.30% &#150; 0.84%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,969,261</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,549,115</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.30% &#150; 0.49%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 261,775</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 159,940</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,113,231</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,499,291</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.16% &#150; 0.29%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,074,257</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,339,595</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.54%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the Trusts&#146; average trust certificates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">outstanding and the daily weighted average interest rate, including fees,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=33%></TD>
     <TD width=46%></TD>
     <TD width=19%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Average Trust</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Daily Weighted</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Certificates</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Average</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Outstanding</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interest Rate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,630,432</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,967,572</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.03%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;12,684,137</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.11%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,579,431</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.84%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;58,071,966</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.97%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 258,308</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.48%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10,302,625</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2.18%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,413,511</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.30%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,121</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,153,941</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.17%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,386,693</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.58%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Should short-term interest rates rise, the Trusts&#146; investments in TOBs may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">adversely affect the Trusts&#146; investment income and distributions to Common</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders. Also, fluctuations in the market value of municipal bonds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">deposited into the TOB may adversely affect the Trusts&#146; net asset value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">per share.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Zero-Coupon Bonds: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust may invest in zero-coupon bonds, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are normally issued at a significant discount from face value and do not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provide periodic interest payments. Zero-coupon bonds may experience</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">greater volatility in market value than similar maturity debt obligations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which provide regular interest payments.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Segregation and Collateralization: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In cases in which the 1940 Act and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">interpretive positions of the Securities and Exchange Commission (&#147;SEC&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require that a Trust either delivers collateral or segregates assets in connec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion with certain investments (e.g., financial futures contracts and swap agree-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments) each Trust will, consistent with SEC rules and/or certain interpretive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">letters issued by the SEC, segregate collateral or designate on its books and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">records cash or other liquid securities having a market value at least equal to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the amount that would otherwise be required to be physically segregated.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Furthermore, based on requirements and agreements with certain exchanges</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and third party broker-dealers, each party has requirements to deliver/deposit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities as collateral for certain investments (e.g., financial futures contracts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and swap agreements). As part of these agreements, when the value of these</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investments achieves a previously agreed upon value (minimum transfer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount), each party may be required to deliver additional collateral.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Transactions and Investment Income: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For financial reporting</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purposes, investment transactions are recorded on the dates the trans-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">actions are entered into (the trade dates). Realized gains and losses on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">security transactions are determined on the identified cost basis. Dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income is recorded on the ex-dividend dates. Interest income is recognized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the accrual method. Each Trust amortizes all premiums and discounts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on debt securities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Dividends and Distributions: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends from net investment income are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declared and paid monthly. Distributions of capital gains are recorded</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the ex-dividend dates. Dividends and distributions to Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders are accrued and determined as described in Note 7.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Income Taxes: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">It is each Trust&#146;s policy to comply with the requirements of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Internal Revenue Code applicable to regulated investment companies</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and to distribute substantially all of its taxable income to its shareholders.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Therefore, no federal income tax provision is required.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust files US federal and various state and local tax returns. No</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income tax returns are currently under examination. The statute of limita-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions on the Trusts&#146; US federal tax returns remains open for each of the four</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">years ended August 31, 2009 (two years ended December 31, 2007 and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the period ended August 31, 2008 and year ended August 31, 2009 for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE). The statutes of limitations on the Trusts&#146; state and local tax returns</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may remain open for an additional year depending upon the jurisdiction.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Recent Accounting Pronouncement: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In June 2009, Statement of Financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting Standards No. 166, &#147;Accounting for Transfers of Financial Assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; an amendment of FASB Statement No. 140&#148; (&#147;FAS 166&#148;), was issued.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">FAS 166 is intended to improve the relevance, representational faithfulness</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and comparability of the information that a reporting entity provides in its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements about a transfer of financial assets; the effects of a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfer on its financial position, financial performance, and cash flows;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and a transferor&#146;s continuing involvement, if any, in transferred financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets. FAS 166 is effective for financial statements issued for fiscal years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and interim periods beginning after November 15, 2009. Earlier application</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is prohibited. The recognition and measurement provisions of FAS 166</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">must be applied to transfers occurring on or after the effective date.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, the disclosure provisions of FAS 166 should be applied to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">transfers that occurred both before and after the effective date of FAS 166.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The impact of FAS 166 on the Trusts&#146; financial statement disclosures, if any,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is currently being assessed.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Deferred Compensation and BlackRock Closed-End Share Equivalent</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Investment Plan: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the deferred compensation plan approved by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Trust&#146;s Board, non-interested Trustees (&#147;Independent Trustees&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may defer a portion of their annual complex-wide compensation.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deferred amounts earn an approximate return as though equivalent dollar</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts had been invested in common shares of other certain BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Closed-End Funds selected by the Independent Trustees. This has approxi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mately the same economic effect for the Independent Trustees as if the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Trustees had invested the deferred amounts directly in other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain BlackRock Closed-End Funds.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The deferred compensation plan is not funded and obligations thereunder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">represent general unsecured claims against the general assets of each</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">64 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust. Each Trust may, however, elect to invest in common shares of other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain BlackRock Closed-End Funds selected by the Independent Trustees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in order to match its deferred compensation obligations. Investments to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cover each Trust&#146;s deferred compensation liability are included in other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets in the Statements of Assets and Liabilities. Dividends and distribu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions from the BlackRock Closed-End Fund investments under the plan are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">included in income &#151; affiliated in the Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Other: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Expenses directly related to a Trust are charged to that Trust. Other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operating expenses shared by several funds are prorated among those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds on the basis of relative net assets or other appropriate methods.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the terms of certain custody agreements, custodian fees may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be reduced by amounts calculated on uninvested cash balances, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are shown as fees paid indirectly in the Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">2. Derivative Financial Instruments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may engage in various portfolio investment strategies both to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">increase the returns of the Trusts and to economically hedge, or protect,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their exposure to interest rate risk. Losses may arise if the value of the con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tract decreases due to an unfavorable change in the value of the underly-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing security, or if the counterparty does not perform under the contract. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts may mitigate counterparty risk through master netting agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">included within an International Swap and Derivatives Association, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;ISDA&#148;) Master Agreement between a Trust and each of its counterparties.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The ISDA Master Agreement allows each Trust to offset with its counterparty</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain derivative financial instruments&#146; payables and/or receivables with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">collateral held with each counterparty. The amount of collateral moved</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to/from applicable counterparties is based upon minimum transfer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amounts of up to &#36;500,000. To the extent amounts due to the Trusts from</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their counterparties are not fully collateralized contractually or otherwise,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts bear the risk of loss from counterparty non-performance. See</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Note 1 &#147;Segregation and Collateralization&#148; for information with respect to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">collateral practices.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts&#146; maximum risk of loss from counterparty credit risk on over-the-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counter derivatives is generally the aggregate unrealized gain in excess</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of any collateral pledged by the counterparty to the Trusts. Certain ISDA</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Master Agreements allow counterparties to over-the-counter derivatives to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">terminate derivative contracts prior to maturity in the event a Trust&#146;s net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets decline by stated percentages or a Trust fails to meet the terms of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its ISDA Master Agreements, which would cause the Trust to accelerate pay-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment of any net liability owed to the counterparty. Counterparty risk related</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to exchange-traded financial futures contracts is minimal because of the</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">protection against defaults provided by the exchange on which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">they trade.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Financial Futures Contracts: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may purchase or sell financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">futures contracts and options on financial futures contracts to gain expo-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sure to, or economically hedge against, changes in interest rates (interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate risk). Financial futures contracts are contracts for delayed delivery of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">securities at a specific future date and at a specific price or yield. Pursuant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the contract, the Trusts agree to receive from or pay to the broker an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of cash equal to the daily fluctuation in value of the contract. Such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipts or payments are known as margin variation and are recognized by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts as unrealized gains or losses. When the contract is closed, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts record a realized gain or loss equal to the difference between the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of the contract at the time it was opened and the value at the time</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">it was closed. The use of financial futures transactions involves the risk of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an imperfect correlation in the movements in the price of financial futures</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">contracts, interest rates and the underlying assets.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Swaps: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may enter into swap agreements, in which a Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and a counterparty agree to make periodic net payments on a specified</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">notional amount. These periodic payments received or made by the Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are recorded in the Statements of Operations as realized gains or losses,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respectively. Swaps are marked-to-market daily and changes in value are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">recorded as unrealized appreciation (depreciation). When the swap is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">terminated, the Trusts will record a realized gain or loss equal to the dif-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ference between the proceeds from (or cost of) the closing transaction</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the Trusts&#146; basis in the contract, if any. Such risks involve the possi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">bility that there will be no liquid market for these agreements, that the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">counterparty to the agreements may default on its obligation to perform</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or disagree as to the meaning of the contractual terms in the agreements,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and that there may be unfavorable changes in interest rates and/or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market values associated with these transactions.</FONT></P>
<P align="left">
<FONT size=2 face="Frutiger-Roman,Arial,Helvetica,sans-serif">&#149; </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Forward interest rate swaps &#151; The Trusts may enter into forward interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rate swaps to manage duration, the yield curve or interest rate risk</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by economically hedging the value of the fixed rate bonds which may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">decrease when interest rates rise (interest rate risk). In a forward inter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">est rate swap, each Trust and the counterparty agree to make periodic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net payments on a specified notional contract amount, commencing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on a specified future effective date, unless terminated earlier. The Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally intend to close each forward interest rate swap before the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">effective date specified in the agreement and therefore avoid entering</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into the interest rate swap underlying each forward interest rate swap.</FONT></P>
<P align="left">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards</FONT></B><BR>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">No. 133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148;</FONT></B></P>
<P align="center">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">The Effect of Derivative Instruments on the Statements of Operations Year Ended August 31, 2009*</FONT></B></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=20%></TD>
     <TD width=17%></TD>
     <TD width=9%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD>
     <TD width=9%></TD>
     <TD width=2%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=center colspan=10 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized Gain (Loss) From Derivatives Recognized in Income</FONT></B></TD>
</TR>
<TR>
	<TD colspan=10><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCK</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZA</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHN</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BSE</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BQH</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BFY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial futures contracts</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,468</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,574</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 47,148</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,701</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,943</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,974</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,952</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Forward interest rate swaps</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(521,411)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (99,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,468</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,574</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(474,263)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,701</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,943</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,974</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,952</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (99,000)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=10 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income</FONT></B></TD>
</TR>
<TR>
	<TD colspan=10><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Interest rate contracts:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Forward interest rate swaps</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 375,543</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 83,017</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* As of August 31, 2009, there were no financial futures contracts or forward interest rate swaps outstanding. During the year ended August 31, 2009, the Trusts had limited
activity</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in these transactions.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">65</FONT></P>

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<A name="page_68"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">3. Investment Advisory Agreement and Other Transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">with Affiliates:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The PNC Financial Services Group, Inc. (&#147;PNC&#148;) and Bank of America</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (&#147;BAC&#148;) are the largest stockholders of BlackRock, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BlackRock&#148;). BAC became a stockholder of BlackRock following its acqui-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sition of Merrill Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#148;) on January 1, 2009.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to that date, both PNC and Merrill Lynch were considered affiliates of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">an affiliate, but due to the restructuring of Merrill Lynch&#146;s ownership interest</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust entered into an Investment Advisory Agreement with BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisors, LLC (the &#147;Manager&#148;) the Trusts&#146; investment advisor, an indirect,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wholly owned subsidiary of BlackRock, to provide investment advisory and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">administration services.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager is responsible for the management of each Trust&#146;s portfolio</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and provides the necessary personnel, facilities, equipment and certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other services necessary to the operations of each Trust. For such services,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Trust pays the Manager a monthly fee at an annual rate of 0.50%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for MHE, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Bond Trusts. Each Trust&#146;s monthly fees are based upon average weekly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets except MHN and MHE, which are based upon average daily net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets. Average daily or weekly net assets is the average daily or weekly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value of each Trust&#146;s total assets minus the sum of its accrued liabilities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has voluntarily agreed to waive its advisory fee on the pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ceeds of Preferred Shares and TOBs that exceed 35% of the average daily</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net assets of MHN. For the year ended August 31, 2009, the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">waived &#36;750,376, which is included in fees waived by advisor in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Statements of Operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has voluntarily agreed to waive a portion of the investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisory fee for certain other funds. With respect to BCK and BSE, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">waiver, as a percentage of average weekly net assets is as follows: 0.15%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">through October 2008, 0.10% through October 2009, and 0.05% through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 2010. With respect to the Bond Trusts, the waiver, as a percentage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of average weekly net assets, is as follows: 0.20% through April 2009,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.15% through April 2010, 0.10% through April 2011 and 0.05% through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April 2012. With respect to the Income II Trusts, the waiver, as a percentage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of average weekly net assets, is 0.10% through July 2009, and 0.05%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">through July 2012. For the year ended August 31, 2009, the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">waived the following amounts, which are included in fees waived by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisor in the Statements of Operations:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=45%></TD>
     <TD width=54%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fees Waived</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">by Manager</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;120,102</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;137,778</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;163,382</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 79,168</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 86,770</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;142,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;106,992</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;103,629</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,057</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Additionally, the Manager has agreed to waive its advisory fees by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount of investment advisory fees each Trust pays to the Manager indi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rectly through its investment in affiliated money market funds, which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">included in fees waived by advisor in the Statements of Operations. For the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year ended August 31, 2009, the amounts waived were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=45%></TD>
     <TD width=54%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Fees Waived</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">by Manager</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 23,867</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,690</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 30,697</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5,682</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 49,641</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,149</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,225</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,931</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,074</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Manager has entered into a separate sub-advisory agreement with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Investment Management, LLC (&#147;BRIM&#148;) for MHN and MHE and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Financial Management, Inc. (&#147;BFM&#148;) for all other Trusts. BRIM</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BFM are affiliates of the Manager. The Manager pays BRIM and BFM</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for services they provide, a monthly fee that is a percentage of the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment advisory fee paid by each Trust to the Manager.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For the year ended August 31, 2009, the Trusts reimbursed the Manager for</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain accounting services in the following amounts, which are included in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounting services in the Statements of Operations:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=43%></TD>
     <TD width=56%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Reimbursement</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,213</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,574</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,421</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 887</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,061</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 954</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,634</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,116</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,251</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 705</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 934</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Certain officers and/or trustees of the Trusts are officers and/or directors of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock or its affiliates. The Trusts reimburse the Manager for compensa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion paid to the Trusts&#146; Chief Compliance Officer.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">4. Investments:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Purchases and sales of investments, excluding short-term securities, for the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year ended August 31, 2009 were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=30%></TD>
     <TD width=47%></TD>
     <TD width=22%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Purchases</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sales</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 68,622,326</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,256,702</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 41,935,060</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 40,969,301</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;105,574,078</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;104,252,096</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,242,707</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,618,301</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;123,353,204</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;147,996,487</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,387,840</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 13,295,234</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 29,517,296</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 36,478,866</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 17,940,893</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 18,470,768</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 20,206,961</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,894,659</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,559,749</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,647,110</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,891,650</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,942,722</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">66 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_69"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">5. Income Tax Information:</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Reclassifications: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting principles generally accepted in the United States of America require
that certain components of net assets be adjusted to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">following permanent differences as of August 31,2009 attributable to amortization methods on fixed income securities, the book to tax difference on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sale of residual interests in tender option bond trusts, the expiration of capital loss carryforwards and the tax classification of distributions received from a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">regulated investment company were reclassified to the following accounts:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=15%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=10%></TD>
     <TD width=6%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=5%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCK</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZA</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCL</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZM</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHN</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLJ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BSE</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BQH</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BFY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHV</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Paid-in capital</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(17,253,223)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (942)</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed net investment</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(2,030)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(6)</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(206)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 533,905</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(193)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,039)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(56)</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(66,893)</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(712)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accumulated net realized</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gain (loss)</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,030</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 206</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 16,719,318</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 193</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,039</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 56</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 67,835</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 712</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The tax character of distributions paid during the fiscal years ended August 31, 2009 and August 31, 2008, the fiscal period ended August 31, 2008, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the fiscal year ended December 31, 2007 was as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=15%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=8%></TD>
     <TD width=6%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD>
     <TD width=7%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCK</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZA</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZM</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHN</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLJ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BSE</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BQH</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BFY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHV</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax-exempt income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4,332,676</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,154,193</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,884,006</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,888,814 &#36;24,970,495</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,307,460</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5,352,845</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,707,205</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4,685,682</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,540,904</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,753,424</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,060,164</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,981,070</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,339,031</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,261,125 30,049,997</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,765,306</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,143,118</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,241,520</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,062,849</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,789,269</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2008 &#150; 8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,326,955</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2007 &#150; 12/31/2007</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,096,949</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Ordinary income</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151; &#36;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">97,687</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 76,533</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 31,570</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 152,539</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 174,151</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 85,254</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 86,258</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 108,227</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 172,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 63,559</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2008 &#150; 8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2007 &#150; 12/31/2007</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,691</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Long-term capital gains</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14,864</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,921</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 14,672</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 255,705</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,379</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 28,734</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 303,996</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">81,671</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 120,168</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2008 &#150; 8/31/2008</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2007 &#150; 12/31/2007</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,944</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total distributions</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2009</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4,332,676</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,169,057</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,884,006</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,897,735 &#36;25,068,182</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,307,460</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5,352,845</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,721,877</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4,685,682</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,873,142</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,784,994</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8/31/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5,060,164</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4,133,609</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;8,513,182</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,386,758 &#36;30,049,997</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,880,298</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,447,114</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,431,418</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5,356,002</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,852,828</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2008 &#150; 8/31/2008</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,326,955</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/1/2007 &#150; 12/31/2007</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,102,584</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=7 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As of August 31, 2009 the tax components of accumulated earnings (losses) were as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCK</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZA</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZM</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHN</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLJ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BSE</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BQH</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BFY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHV</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tax-exempt income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 811,709</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 512,687</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,506,657</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 235,351 &#36;</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,389,051 &#36; 267,604</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,062,688</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 415,832</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,041,665</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 322,995 &#36; 418,349</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed ordinary</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">25,017</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40,487</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">91,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Undistributed long-term net</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital gains</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">231,756</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">261,647</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital loss carryforwards</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(594,868)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,885,639)</FONT>&nbsp;</TD>
	<TD align=right colspan=2>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(150,609) (23,714,528)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(345,064)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,631,721)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(707,643)</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(696,782)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Net unrealized</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gains (losses)*</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,925,521)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">572,478</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,132,513)</FONT>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(815,238) (15,504,647)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,442,522)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(3,181,108)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">312,998</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1,097,842)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">734,320</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(921,599)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Total accumulated net</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earnings (losses)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(1,708,680)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,085,165</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(3,511,495)</FONT>&nbsp;</TD>
	<TD align=right colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;(730,496)&#36;(33,830,124)&#36;(1,494,965) &#36;(3,750,141)</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,001,073</FONT>&nbsp;</TD>
	<TD align=right colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; (763,820) &#36;1,318,962 &#36;(1,108,892)</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">* The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, the tax deferral of
losses on</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, the deferral of post-October capital losses for tax
pur-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">poses, the timing and recognition of partnership income, the difference between the book and tax treatment of residual interests in tender option bond trusts, the deferral of
com-</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pensation to trustees, and other book-tax temporary differences.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">As of August 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=21%></TD>
     <TD width=24%></TD>
     <TD width=8%></TD>
     <TD width=6%></TD>
     <TD width=9%></TD>
     <TD width=7%></TD>
     <TD width=8%></TD>
     <TD width=7%></TD>
     <TD width=6%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Expires</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCK</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BCL</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZM</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHN</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BLJ</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BSE</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BFY</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2010</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2011</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2012</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,224,992</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2013</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;242,956</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15,054,033</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2014</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,097,743</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2015</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360,789</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,782,666</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 70,160</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 35,869</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2016</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">351,912</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">113,830</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">710,089</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 25,168</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">383,137</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">285,683</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2017</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">186,028</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;150,609</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,069,997</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">319,896</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,631,721</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">254,346</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">375,230</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;594,868</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3,885,639</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;150,609</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;23,714,528</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;345,064</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,631,721</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;707,643</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;696,782</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">67</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<A name="page_70"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">6. Concentration, Market and Credit Risk:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust invests a substantial amount of its assets in issuers located</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in a single state or limited number of states. Please see the Schedules of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investments for concentration in specific states.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Many municipalities insure repayment of their bonds, which reduces the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk of loss due to issuer default. The market value of these bonds may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fluctuate for other reasons, including market perception of the value of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such insurance, and there is no guarantee that the insurer will meet</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its obligation.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In the normal course of business, the Trusts invest in securities and enter</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">into transactions where risks exist due to fluctuations in the market (market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk) or failure of the issuer of a security to meet all its obligations (credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk). The value of securities held by the Trusts may decline in response to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">certain events, including those directly involving the issuers whose securi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ties are owned by the Trusts; conditions affecting the general economy;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">overall market changes; local, regional or global political, social or eco-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nomic instability; and currency and interest rate and price fluctuations.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Similar to credit risk, the Trusts may be exposed to counterparty risk, or the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">risk that an entity with which the Trusts have unsettled or open transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may default. Financial assets, which potentially expose the Trusts to credit</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and counterparty risks, consist principally of investments and cash due</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from counterparties. The extent of the Trusts&#146; exposure to credit and coun-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">terparty risks with respect to these financial assets is approximated by their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">value recorded in the Trusts&#146; Statements of Assets and Liabilities.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">7. Capital Share Transactions:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts, except MHN, are authorized to issue an unlimited number of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares (200 million shares for MHN), all of which were initially classified</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as Common Shares. The par value for the Trusts, except MHN and MHE, is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.001 per share (&#36;0.10 for MHN and &#36;0.01 for MHE). Each Trust&#146;s Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">is authorized, however, to reclassify any unissued shares without approval</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Common Shareholders.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Common Shares</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued and outstanding during the years ended August 31, 2009</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and 2008 increased by the following amounts as a result of dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reinvestment:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=40%></TD>
     <TD width=46%></TD>
     <TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Year Ended</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">August 31,</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2009</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2008</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,344</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">22,468</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,688</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">9,282</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,599</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,624</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10,138</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,972</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,180</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,342</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20,407</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,492</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,272</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7,591</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,252</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued and outstanding remained constant for MHN for the years</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended August 31, 2009 and 2008. Shares issued and outstanding</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">remained constant for MHE for the year ended August 31, 2009, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">period January 1, 2008 to August 31, 2008 and the year ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 31, 2007.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Preferred Shares</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Preferred Shares are redeemable at the option of each Trust, in whole</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or in part, on any dividend payment date at their liquidation preference per</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share plus any accumulated and unpaid dividends whether or not declared.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Preferred Shares are also subject to mandatory redemption at their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">liquidation preference plus any accumulated and unpaid dividends, whether</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or not declared, if certain requirements relating to the composition of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets and liabilities of a Trust, as set forth in each Trust&#146;s Statements of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferences/Articles Supplementary/Certificates of Designation/Certificate of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vote of Trustees, as applicable (the &#147;Governing Instrument&#148;) are not satisfied.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">From time to time in the future, each Trust may effect repurchases of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares at prices below their liquidation preference as agreed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">upon by the Trust and seller. Each Trust also may redeem its Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares from time to time as provided in the applicable Governing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Instrument. Each Trust intends to effect such redemptions and/or repur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chases to the extent necessary to maintain applicable asset coverage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requirements or for such other reasons as the Board may determine.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The holders of Preferred Shares have voting rights equal to the holders of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares (one vote per share) and will vote together with holders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Common Shares (one vote per share) as a single class. However, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders of Preferred Shares, voting as a separate class, are also entitled</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to elect two Trustees for each Trust. In addition, the 1940 Act requires that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">along with approval by shareholders that might otherwise be required, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approval of the holders of a majority of any outstanding Preferred Shares,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">voting separately as a class would be required to (a) adopt any plan of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reorganization that would adversely affect the Preferred Shares, (b) change</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a Trust&#146;s sub-classification as a closed-end investment company or change</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its fundamental investment restrictions or (c) change its business so as to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cease to be an investment company.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts had the following series of Preferred Shares outstanding, effec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive yields and reset frequency as of August 31, 2009:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=20%></TD>
     <TD width=27%></TD>
     <TD width=19%></TD>
     <TD width=16%></TD>
     <TD width=15%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Reset</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Preferred</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Effective</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frequency</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Yield</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Days</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,253</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">898</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">931</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.53%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">931</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">640</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,479</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,479</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,366</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.53%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,864</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,557</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.53%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">751</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.53%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,623</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">885</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.53%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,779</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">467</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.49%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.52%</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">185</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.53%</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">68 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_71"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (continued)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dividends on 7-day Preferred Shares are cumulative at a rate which is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reset every 7 days based on the results of an auction. If the Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares fail to clear the auction on an auction date, the affected Trust is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">required to pay the maximum applicable rate on the Preferred Shares to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders of such shares for successive dividend periods until such time as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares are successfully auctioned. The maximum applicable rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on Preferred Shares is the higher of 110% of the AA commercial paper rate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or 110% of 90% of the Kenny S&amp;P 30-day High Grade Index rate divided</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by 1.00 minus the marginal tax rate. The low, high and average dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rates on the Preferred Shares for each Trust for the year ended August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=20%></TD>
     <TD width=28%></TD>
     <TD width=17%></TD>
     <TD width=18%></TD>
     <TD width=14%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Low</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">High</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Average</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.73%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.73%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.40%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.35%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.64%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.68%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.38%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.57%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.68%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.43%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.21%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.71%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.73%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.65%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.40%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.35%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.43%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10.21%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.66%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.40%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.35%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.38%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.57%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.69%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.35%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.26%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.67%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.38%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.57%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.70%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0.40%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11.35%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1.74%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since February 13, 2008, the Preferred Shares of each Trust failed to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">clear any of their auctions. As a result, the Preferred Shares dividend rates</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were reset to the maximum applicable rate, which ranged from 0.35% to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12.57%. A failed auction is not an event of default for the Trusts but it</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">has a negative impact on the liquidity of Preferred Shares. A failed auction</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">occurs when there are more sellers of a Trust&#146;s auction rate Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares than buyers. It is impossible to predict how long this imbalance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will last. A successful auction for each Trust&#146;s Preferred Shares may not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">occur for some time, if ever, and even if liquidity does resume, Preferred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders may not have the ability to sell the Preferred Shares at their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">liquidation preference.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts may not declare dividends or make other distributions on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares or purchase any such shares if, at the time of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declaration, distribution or purchase, asset coverage with respect to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">outstanding Preferred Shares is less than 200%.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to December 22, 2008, the Trusts paid commissions to certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">broker-dealers at the end of each auction at an annual rate of 0.25%,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">calculated on the aggregate principal amount. In December 22, 2008,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commissions paid to broker-dealers on preferred shares that experience</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a failed auction were reduced to 0.15% on the aggregate principal amount.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Subsequently, certain broker-dealers have individually agreed to further</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reduce commissions for failed auctions. The Trusts will continue to pay</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commissions of 0.25% on the aggregate principal amount of all shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that successfully clear their auctions. Merrill Lynch, Pierce, Fenner &amp; Smith</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sions as follows from September 1, 2008 to December 31, 2008 (after</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which time Merrill Lynch was no longer considered an affiliate):</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=44%></TD>
     <TD width=55%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Commissions</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 739</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,811</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,139</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,116</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;101,126</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,984</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,653</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,602</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 12,083</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 434</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 10,877</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the year ended August 31, 2009, the Trusts announced the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">following redemptions of Preferred Shares at a price of &#36;25,000 per share</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">plus any accrued and unpaid dividends through the redemption dates:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=21%></TD>
     <TD width=26%></TD>
     <TD width=19%></TD>
     <TD width=16%></TD>
     <TD width=15%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redemption</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aggregate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/13/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">249</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,225,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/13/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">221</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;5,525,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/08/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">264</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,600,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/10/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">264</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;6,600,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/09/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,400,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/06/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">56</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,400,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/07/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,250,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/06/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">109</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2,725,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/08/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">59</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,475,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/14/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">17</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 425,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/10/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">44</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1,100,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/08/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">11</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 275,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/09/09</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 175,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">7/10/09</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">20</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 500,000</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">During the year ended August 31, 2008 (period January 1, 2008 to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2008 for MHE), the Trusts announced the following redemptions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Preferred Shares at a price of &#36;25,000 (&#36;50,000 for MHE) per share</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">plus any accrued and unpaid dividends through the redemption dates:</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">69</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_72"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Notes to Financial Statements (concluded)</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=21%></TD>
     <TD width=26%></TD>
     <TD width=19%></TD>
     <TD width=16%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redemption</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Shares</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Aggregate</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Redeemed</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/30/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">358</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,950,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/30/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/25/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">244</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,100,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/27/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">244</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,100,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/27/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">80</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2,000,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/26/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,125,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/27/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">365</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,125,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/24/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">584</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,600,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/23/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">707</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,675,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/25/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">384</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,600,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/24/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">41</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,025,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/27/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">573</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,325,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/25/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">72</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,800,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/27/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">54</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1,350,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/12/08</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 750,000</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/11/08</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 750,000</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts financed the Preferred Share redemptions with cash received</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from TOB transactions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shares issued and outstanding remained constant for BZM during the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">year ended August 31, 2009. Shares issued and outstanding remained</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">constant during the year ended August 31, 2008 for BFY. Shares issued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and outstanding remained constant for MHE for the year ended August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 and the year ended December 31, 2007.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">8. Plan of Reorganization:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On May 28, 2009, the Boards of each of BCK, BZA and BCL approved</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreements and plans of reorganization, subject to shareholder approval</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and certain other conditions, whereby each of BCK, BZA, BCL together</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with BlackRock California Investment Quality Municipal Trust Inc. (RAA)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(each, a &#147;Target Fund&#148;) will merge with and into a new wholly owned sub-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sidiary of BlackRock California Municipal Income Trust (&#147;BFZ&#148;) (each,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a &#147;Reorganization&#148;). If approved, the mergers are expected to be con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cluded in the fourth quarter of 2009. The outstanding Common Shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Preferred Shares held by each Target Fund&#146;s shareholders will be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exchanged for Common Shares or Preferred Shares of BFZ, respectively,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pursuant to each Reorganization.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">9. Subsequent Events:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust paid a net investment income dividend on October 1, 2009 to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders of record on September 15, 2009 as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=46%></TD>
     <TD width=53%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividend</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Per Share</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0660</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0770</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0745</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0679</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0685</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0755</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0655</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0780</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0800</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.0620</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The dividends declared on Preferred Shares for the period September 1,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 to September 30, 2009 were as follows:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=37%></TD>
     <TD width=45%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividends</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Series</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Declared</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;11,878</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">F-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,513</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 9,034</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,941</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6,140</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,334</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;14,189</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">C</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;22,210</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">D</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;27,150</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">E</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15,115</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">M-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7,050</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;15,570</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">T-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8,591</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">W-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;17,241</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R-7</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4,480</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,588</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">B</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3,592</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management&#146;s evaluation of the impact of all subsequent events on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts&#146; financial statements was completed through October 29, 2009, the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date the financial statements were issued.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">70 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Report of Independent Registered Public Accounting Firm</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">To the Shareholders and Boards of Directors/Trustees of:</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock California Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock MuniHoldings New York Insured Fund, Inc.</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock New Jersey Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">The Massachusetts Health &amp; Education Tax-Exempt Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">(collectively, the &#147;Trusts&#148;):</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We have audited the accompanying statements of assets and liabilities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including the schedules of investments, of BlackRock California Insured</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Income Trust, BlackRock California Municipal Bond Trust,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock California Municipal Income Trust II, BlackRock Maryland</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust, BlackRock MuniHoldings New York Insured Fund,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Inc., BlackRock New Jersey Municipal Bond Trust, BlackRock New York</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured Municipal Income Trust, BlackRock New York Municipal Bond Trust,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Income Trust II and BlackRock Virginia</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust, as of August 31, 2009, and the related statements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of operations for the year then ended, the statements of changes in net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets for each of the two years in the period then ended, and the financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">highlights for each of the five years in the period then ended. We have also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">audited the accompanying statement of assets and liabilities, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the schedule of investments, of The Massachusetts Health &amp; Education</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Tax-Exempt Trust as of August 31, 2009, and the related statement of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operations for the year then ended, the statements of changes in net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assets for the year then ended, for the period January 1, 2008 to August</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">31, 2008, and for the year ended December 31, 2007, and the financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">highlights for the year then ended, for the period January 1, 2008 to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2008 and for each of the four years in the period ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">December 31, 2007. These financial statements and financial highlights</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are the responsibility of the Trusts&#146; management. Our responsibility is to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">express an opinion on these financial statements and financial highlights</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">based on our audits.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We conducted our audits in accordance with the standards of the Public</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company Accounting Oversight Board (United States). Those standards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require that we plan and perform the audit to obtain reasonable assurance</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about whether the financial statements and financial highlights are free of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">material misstatement. The Trusts are not required to have, nor were we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">engaged to perform an audit of their internal control over financial report-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing. Our audits included consideration of internal control over financial</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting as a basis for designing audit procedures that are appropriate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the circumstances, but not for the purpose of expressing an opinion</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the effectiveness of the Trusts&#146; internal control over financial reporting.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accordingly, we express no such opinion. An audit also includes examining,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on a test basis, evidence supporting the amounts and disclosures in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statements, assessing the accounting principles used and signifi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cant estimates made by management, as well as evaluating the overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial statement presentation. Our procedures include confirmation of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the securities owned as of August 31, 2009, by correspondence with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">custodians and brokers; where replies were not received from brokers, we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performed other auditing procedures. We believe that our audits provide a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reasonable basis for our opinion.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In our opinion, the financial statements and financial highlights referred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to above present fairly, in all material respects, the financial position of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock California Insured Municipal Income Trust, BlackRock California</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust, BlackRock California Municipal Income Trust II,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Maryland Municipal Bond Trust, BlackRock MuniHoldings</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Insured Fund, Inc., BlackRock New Jersey Municipal Bond Trust,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock New York Insured Municipal Income Trust, BlackRock New York</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Bond Trust, BlackRock New York Municipal Income Trust II and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Virginia Municipal Bond Trust as of August 31, 2009, the results</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of their operations for the year then ended, the changes in their net assets</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for each of the two years in the period then ended, and the financial high-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lights for each of the five years in the period then ended, and for The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Massachusetts Health &amp; Education Tax-Exempt Trust as of August 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009, the result of its operations for the year then ended, the changes</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in its net assets for the year then ended, for the period January 1, 2008</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to August 31, 2008, and for the year ended December 31, 2007, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the financial highlights for the year then ended, for the period January 1,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2008 to August 31, 2008 and for each of the four years in the period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended December 31, 2007, in conformity with accounting principles</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generally accepted in the United States of America.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche LLP</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, New Jersey</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">October 29, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">71</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Important Tax Information</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All of the net investment income distributions paid by BCK, BCL, BLJ, BSE,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BFY during the taxable year ended August 31, 2009 qualify as tax-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">exempt interest dividends for Federal income tax purposes.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The following table summarizes the taxable per share distributions paid</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by BZA, BZM, MHN, BQH, BHV and MHE during the taxable year ended</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">August 31, 2009.</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=32%></TD>
     <TD width=23%></TD>
     <TD width=23%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Payable</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ordinary</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Long-Term</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZA</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Gains</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.002917</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shareholders:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series F-7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/15/08</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4.40</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BZM</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.003211</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shareholders:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series R-7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/19/08</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.69</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHN</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.002082</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shareholders:</FONT>&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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/18/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.32</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/12/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.27</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series C</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/09/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.34</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series D</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/15/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.32</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series E</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/10/08</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.33</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BQH</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.003939</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shareholders:</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series T-7</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/10/08</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;4.24</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=32%></TD>
     <TD width=23%></TD>
     <TD width=23%></TD>
     <TD width=20%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Payable</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Ordinary</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Long-Term</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BHV</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Date</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital Gains</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.036340</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.122726</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shareholders:</FONT>&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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series R-7</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/12/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2.42</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.20</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/19/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2.05</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 6.92</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/26/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2.45</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 8.30</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/2/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;3.14</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;10.61</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/9/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;2.29</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 7.74</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/16/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.42</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.80</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/23/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.06</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.60</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1/30/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.18</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.96</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/6/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.28</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.34</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/13/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.11</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.78</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/20/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.31</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.42</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2/27/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.64</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5.53</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/6/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.62</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5.43</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/13/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.31</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.42</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/20/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.39</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.71</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3/27/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.36</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.62</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/3/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.34</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.52</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/10/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.72</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 5.79</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/17/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.74</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 2.47</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4/24/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.31</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.42</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/1/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.42</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.80</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/8/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.37</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 4.60</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/15/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.15</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.88</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/22/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.06</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.60</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5/29/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.05</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.50</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/5/09</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.92</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 3.14</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6/12/09</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.35</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:3px double #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36; 1.16</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">MHE</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/31/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.008803</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shareholders:</FONT>&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; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series A</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/3/08</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;29.55</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Series B</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">12/2/08</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;29.57</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All other net investment income distributions paid by BZA, BZM, MHN, BQH,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV and MHE during the taxable year ended August 31, 2009 qualify as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tax-exempt interest dividends for Federal income tax purposes.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">72 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of Directors or the Board of Trustees, as the case may be (each,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">a &#147;Board,&#148; and, collectively the &#147;Boards,&#148; and the members of which are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">referred to as &#147;Board Members&#148;), of each of BlackRock California Insured</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Income Trust (&#147;BCK&#148;), BlackRock California Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BZA&#148;), BlackRock California Municipal Income Trust II (&#147;BCL&#148;), BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Maryland Municipal Bond Trust (&#147;BZM&#148;), BlackRock MuniHoldings New York</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insured Fund, Inc. (&#147;MHN&#148;), BlackRock New Jersey Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BLJ&#148;), BlackRock New York Insured Municipal Income Trust (&#147;BSE&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock New York Municipal Bond Trust (&#147;BQH&#148;), BlackRock New York</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Municipal Income Trust II (&#147;BFY&#148;), BlackRock Virginia Municipal Bond Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;BHV&#148;) and The Massachusetts Health &amp; Education Tax-Exempt Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(&#147;MHE&#148; and, together with BCK, BZA, BCL, BZM, MHN, BLJ, BSE, BQH, BFY</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BHV, each a &#147;Trust&#148; and, collectively, the &#147;Trusts&#148;) met on April 14,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009 and May 28-29, 2009 to consider the approval of its respective</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s investment advisory agreement (each an &#147;Advisory Agreement&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with BlackRock Advisors, LLC (the &#147;Manager&#148;), each Trust&#146;s investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">advisor. Each Board also considered the approval of the sub-advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agreement (each a &#147;Sub-Advisory Agreement&#148;) between its respective</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust, the Manager and BlackRock Financial Management, Inc. or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Investment Management, LLC, as applicable (each a &#147;Sub-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisor&#148;). The Manager and the Sub-Advisor are referred to herein as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#147;BlackRock.&#148; The Advisory Agreements and the Sub-Advisory Agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are referred to herein as the &#147;Agreements.&#148; Unless otherwise indicated,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">references to actions taken by the &#147;Board&#148; or the &#147;Boards&#148; shall mean</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Board acting independently with respect to its respective Trust.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Activities and Composition of the Board</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board consists of twelve individuals, ten of whom are not &#147;interested</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">persons&#148; of the Trusts as defined in the Investment Company Act of 1940,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as amended (the &#147;1940 Act&#148;) (the &#147;Independent Board Members&#148;). The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Members of each Trust are responsible for the oversight of the oper-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ations of such Trust and perform the various duties imposed on the direc-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tors of investment companies by the 1940 Act. The Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members have retained independent legal counsel to assist them in con-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nection with their duties. The Chairman of each Board is an Independent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board Member. Each Board has established five standing committees: an</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Audit Committee, a Governance and Nominating Committee, a Compliance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee, a Performance Oversight Committee and an Executive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee, each of which is composed of Independent Board Members</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(except for the Executive Committee, which has one interested Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member) and is chaired by an Independent Board Member. In addition,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Board has established an Ad Hoc Committee on Auction Market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">The Agreements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to the 1940 Act, each Board is required to consider the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">continuation of the Agreements on an annual basis. In connection with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">this process, each Board assessed, among other things, the nature, scope</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and quality of the services provided to its respective Trust by the personnel</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock and its affiliates, including investment management, admin-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">istrative and shareholder services, oversight of fund accounting and</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">custody, marketing services and assistance in meeting applicable legal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and regulatory requirements.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Throughout the year, the Boards, acting directly and through their commit-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tees, consider at each of their meetings factors that are relevant to their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">annual consideration of the renewal of the Agreements, including the serv-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ices and support provided by BlackRock to the Trusts and their sharehold-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ers. Among the matters the Boards considered were: (a) investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance for one-, three- and five-year periods, as applicable, against</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">peer funds, and applicable benchmarks, if any, as well as senior manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment and portfolio managers&#146; analysis of the reasons for any outperfor-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mance or underperformance against its peers; (b) fees, including advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees, administration fees with respect to MHE, and other amounts paid to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and its affiliates by the Trusts for services such as call center</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and fund accounting; (c) Trust operating expenses; (d) the resources</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">devoted to, and compliance reports relating to, the Trusts&#146; investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">objectives, policies and restrictions; (e) the Trusts&#146; compliance with their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Code of Ethics and compliance policies and procedures; (f) the nature,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cost and character of non-investment management services provided by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and its affiliates; (g) BlackRock&#146;s and other service providers&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">internal controls; (h) BlackRock&#146;s implementation of the proxy voting poli-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cies approved by the Boards; (i) execution quality of portfolio transactions;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(j) BlackRock&#146;s implementation of the Trusts&#146; valuation and liquidity proce-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dures; and (k) periodic updates on BlackRock&#146;s business.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Board Considerations in Approving the Agreements</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">The Approval Process: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Prior to the April 14, 2009 meeting, each Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">requested and received materials specifically relating to the Agreements.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board is engaged in an ongoing process with BlackRock to continu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ously review the nature and scope of the information provided to better</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assist their deliberations. The materials provided in connection with the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">April meeting included (a) information independently compiled and pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pared by Lipper, Inc. (&#147;Lipper&#148;) on Trust fees and expenses, and the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment performance of each Trust as compared with a peer group of funds</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as determined by Lipper and a customized peer group selected by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock, as applicable (collectively, &#147;Peers&#148;); (b) information on the prof-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">itability of the Agreements to BlackRock and a discussion of fall-out bene-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fits to BlackRock and its affiliates and significant shareholders; (c) a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">general analysis provided by BlackRock concerning investment advisory</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees charged to other clients, such as institutional clients and open-end</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">funds, under similar investment mandates, as well as the performance of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such other clients; (d) the impact of economies of scale; (e) a summary</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of aggregate amounts paid by each Trust to BlackRock; and (f) an internal</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">comparison of management fees classified by Lipper, if applicable.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting held on April 14, 2009, each Board reviewed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">materials relating to its consideration of the Agreements. As a result of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussions that occurred during the April 14, 2009 meeting, the Boards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">presented BlackRock with questions and requests for additional informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion and BlackRock responded to these requests with additional written</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information in advance of the May 28-29, 2009 Board meeting.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">73</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">At an in-person meeting held on May 28-29, 2009, each Trust&#146;s Board,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including the Independent Board Members, unanimously approved the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">continuation of the Advisory Agreement between the Manager and such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust and the Sub-Advisory Agreement between such Trust, the Manager</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and each Trust&#146;s respective Sub-Advisor, each for a one-year term ending</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">June 30, 2010. The Boards considered all factors they believed relevant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with respect to the Trusts, including, among other factors: (a) the nature,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">extent and quality of the services provided by BlackRock; (b) the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment performance of the Trusts and BlackRock portfolio management;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(c) the advisory fee and the cost of the services and profits to be realized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by BlackRock and certain affiliates from the relationship with the Trusts;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(d) economies of scale; and (e) other factors.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board also considered other matters it deemed important to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approval process, such as services related to the valuation and pricing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of its respective Trust&#146;s portfolio holdings, direct and indirect benefits to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock and its affiliates and significant shareholders from their relation-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ship with such Trust and advice from independent legal counsel with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respect to the review process and materials submitted for the Board&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">review. The Boards noted the willingness of BlackRock personnel to engage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in open, candid discussions with the Boards. The Boards did not identify</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">any particular information as controlling, and each Board Member may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have attributed different weights to the various items considered.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">A. Nature, Extent and Quality of the Services: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Independent Board Members, reviewed the nature, extent and quality of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">services provided by BlackRock, including the investment advisory services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the resulting performance of its respective Trust. Throughout the year,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">each Board compared its respective Trust&#146;s performance to the perform-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance of a comparable group of closed-end funds, and the performance of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at least one relevant benchmark, if any. The Boards met with BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">senior management personnel responsible for investment operations,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including the senior investment officers. Each Board also reviewed the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">materials provided by its respective Trust&#146;s portfolio management team</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">discussing such Trust&#146;s performance and such Trust&#146;s investment objective,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">strategies and outlook.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board considered, among other factors, the number, education and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">experience of BlackRock&#146;s investment personnel generally and its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Trust&#146;s portfolio management team, investments by portfolio managers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the funds they manage, BlackRock&#146;s portfolio trading capabilities,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s use of technology, BlackRock&#146;s commitment to compliance</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and BlackRock&#146;s approach to training and retaining portfolio managers and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other research, advisory and management personnel. Each Board also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reviewed a general description of BlackRock&#146;s compensation structure with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respect to its respective Trust&#146;s portfolio management team and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s ability to attract and retain high-quality talent.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition to advisory services, each Board considered the quality of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">administrative and non-investment advisory services provided to its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Trust. BlackRock and its affiliates and significant shareholders provide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts with certain administrative and other services (in addition to any</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such services provided to the Trusts by third parties) and officers and other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">personnel as are necessary for the operations of the Trusts. In addition to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisory services, BlackRock and its affiliates provide the Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with other services, including (i) preparing disclosure documents, such as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the prospectus and the statement of additional information in connection</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with the initial public offering and periodic shareholder reports; (ii) prepar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing communications with analysts to support secondary market trading of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts; (iii) assisting with daily accounting and pricing; (iv) preparing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">periodic filings with regulators and stock exchanges; (v) overseeing and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">coordinating the activities of other service providers; (vi) organizing Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">meetings and preparing the materials for such Board meetings; (vii) provid-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing legal and compliance support; and (viii) performing other administra-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive functions necessary for the operation of the Trusts, such as tax</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting, fulfilling regulatory filing requirements, and call center services.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards reviewed the structure and duties of BlackRock&#146;s fund adminis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tration, accounting, legal and compliance departments and considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s policies and procedures for assuring compliance with</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">applicable laws and regulations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">B. The Investment Performance of the Trust and BlackRock: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including its Independent Board Members, also reviewed and considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the performance history of its respective Trust. In preparation for the April</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">14, 2009 meeting, the Boards were provided with reports, independently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">prepared by Lipper, which included a comprehensive analysis of each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s performance. The Boards also reviewed a narrative and statistical</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">analysis of the Lipper data that was prepared by BlackRock, which ana-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">lyzed various factors that affect Lipper&#146;s rankings. In connection with its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">review, each Board received and reviewed information regarding the invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment performance of its respective Trust as compared to a representative</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">group of similar funds as determined by Lipper and to all funds in such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s applicable Lipper category and customized peer group selected by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock, as applicable. Each Board was provided with a description of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the methodology used by Lipper to select peer funds. Each Board regularly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reviews the performance of its respective Trust throughout the year.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of BCK, MHN, BSE, BFY and MHE noted that in general,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK, MHN, BSE, BFY and MHE performed better than their respective Peers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in that the performance of each of BCK, MHN, BSE, BFY, and MHE was at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or above the median of their respective customized Lipper peer group</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">composite in two of the one-, three- and five-year periods reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of BLJ noted that in general, BLJ performed better than its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Peers in that BLJ&#146;s performance was at or above the median of its Lipper</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">performance universe composite in two of the one-, three- and five-year</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">periods reported.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of BZA, BCL, BZM, BQH and BHV noted that in general,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA, BCL, BZM, BQH, and BHV performed better than their respective Peers</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in that the performance of each BZA, BCL, BZM, BQH and BHV was at or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">above the median of their respective customized Lipper peer group com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">posite in each of the one-, three- and five-year periods reported.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">74 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">C. Consideration of the Advisory Fees and the Cost of the Services and</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Profits to be Realized by BlackRock and its Affiliates from their</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Relationship with the Trust: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members, reviewed its respective Trust&#146;s contractual advisory fee rates com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pared with the other funds in its respective Lipper category. Each Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">also compared its respective Trust&#146;s total expenses, as well as actual man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">agement fees, to those of other comparable funds. Each Board considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the services provided and the fees charged by BlackRock to other types of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">clients with similar investment mandates, including separately managed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">institutional accounts.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards received and reviewed statements relating to BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial condition and profitability with respect to the services it provided</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts. The Boards were also provided with a profitability analysis that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">detailed the revenues earned and the expenses incurred by BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for services provided to the Trusts. The Boards reviewed BlackRock&#146;s prof-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">itability with respect to the Trusts and other funds the Boards currently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">oversee for the year ended December 31, 2008 compared to available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">aggregate profitability data provided for the year ended December 31,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007. The Boards reviewed BlackRock&#146;s profitability with respect to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other fund complexes managed by the Manager and/or its affiliates. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards reviewed BlackRock&#146;s assumptions and methodology of allocating</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expenses in the profitability analysis, noting the inherent limitations in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">allocating costs among various advisory products. The Boards recognized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that profitability may be affected by numerous factors including, among</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other things, fee waivers by the Manager, the types of funds managed,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">expense allocations and business mix, and therefore comparability of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">profitability is somewhat limited.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards noted that, in general, individual fund or product line profitabil-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ity of other advisors is not publicly available. Nevertheless, to the extent</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such information is available, the Boards considered BlackRock&#146;s overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">operating margin compared to the operating margin for leading investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management firms whose operations include advising closed-end funds,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">among other product types. The comparison indicated that operating mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gins for BlackRock with respect to its registered funds are generally consis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tent with margins earned by similarly situated publicly traded competitors.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition, the Boards considered, among other things, certain third-party</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">data comparing BlackRock&#146;s operating margin with that of other publicly-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">traded asset management firms, which concluded that larger asset bases</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">do not, in themselves, translate to higher profit margins.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In addition, the Boards considered the cost of the services provided to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trusts by BlackRock, and BlackRock&#146;s and its affiliates&#146; profits relating to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the management and distribution of the Trusts and the other funds advised</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by BlackRock and its affiliates. As part of their analysis, the Boards</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reviewed BlackRock&#146;s methodology in allocating its costs to the manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment of the Trusts. The Boards also considered whether BlackRock has the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">financial resources necessary to attract and retain high quality investment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">management personnel to perform its obligations under the Agreements</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and to continue to provide the high quality of services that is expected by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Boards.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of each of BCK, BZA, BCL, BZM, MHN, BLJ, BSE, BQH, BFY and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE noted that each of its respective Trusts paid contractual management</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">fees, which do not take into account any expense reimbursement or fee</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">waivers, lower than or equal to the median contractual management fees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">paid by such Trust&#146;s Peers.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Board of BHV noted that although the Trust paid contractual manage-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment fees higher than the median of its Peers, its actual management fees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were lower than or equal to the median of its Peers.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">D. Economies of Scale: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Members, considered the extent to which economies of scale might be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized as the assets of its respective Trust increase and whether there</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">should be changes in the advisory fee rate or structure in order to enable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such Trust to participate in these economies of scale, for example through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the use of breakpoints in the advisory fee based upon the assets of such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust. The Boards considered that the funds in the BlackRock fund complex</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share some common resources and, as a result, an increase in the overall</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">size of the complex could permit each fund to incur lower expenses than it</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">would otherwise as a stand-alone entity. The Boards also considered</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s overall operations and its efforts to expand the scale of, and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">improve the quality of, its operations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards noted that most closed-end fund complexes do not have fund</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">level breakpoints because closed-end funds generally do not experience</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">substantial growth after the initial public offering and each fund is man-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">aged independently, consistent with its own investment objectives. The</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boards noted that only one closed-end fund in the Fund Complex has</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">breakpoints in its fee structure. Information provided by Lipper also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">revealed that only one closed-end fund complex used a complex-level</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">breakpoint structure.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">E. Other Factors: </FONT><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Boards also took into account other ancillary or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#147;fall-out&#148; benefits that BlackRock or its affiliates and significant sharehold-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ers may derive from their relationship with the Trusts, both tangible and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">intangible, such as BlackRock&#146;s ability to leverage its investment profes-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sionals who manage other portfolios, an increase in BlackRock&#146;s profile in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the investment advisory community, and the engagement of BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">affiliates and significant shareholders as service providers to the Trusts,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including for administrative and distribution services. The Boards also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">noted that BlackRock may use third-party research obtained by soft dollars</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">generated by certain mutual fund transactions to assist itself in managing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">all or a number of its other client accounts.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">In connection with their consideration of the Agreements, the Boards also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">received information regarding BlackRock&#146;s brokerage and soft dollar prac-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tices. The Boards received reports from BlackRock, which included informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion on brokerage commissions and trade execution practices throughout</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the year.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">75</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-Demi,Arial,Helvetica,sans-serif">Conclusion</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Board, including its Independent Board Members, unanimously</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">approved the continuation of the Advisory Agreement between its respec-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tive Trust and the Manager for a one-year term ending June 30, 2010 and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Sub-Advisory Agreement between such Trust, the Manager and each</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust&#146;s respective Sub-Advisor for a one-year term ending June 30, 2010.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Based upon its evaluation of all these factors in their totality, each Board,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">including its Independent Board Members, was satisfied that the terms of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Agreements were fair and reasonable and in the best interest of its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">respective Trust and its shareholders. In arriving at a decision to approve</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Agreements, each Board did not identify any single factor or group of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">factors as all-important or controlling, but considered all factors together,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and different Board Members may have attributed different weights to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">various factors considered. The Independent Board Members were also</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">assisted by the advice of independent legal counsel in making this deter-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mination. The contractual fee arrangements for each Trust reflects the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">results of several years of review by such Trust&#146;s Board Members and pred-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ecessor Board Members, and discussions between such Board Members</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(and predecessor Board Members) and BlackRock. Certain aspects of the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">arrangements may be the subject of more attention in some years than in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">others, and the Board Members&#146; conclusions may be based in part on their</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">consideration of these arrangements in prior years.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">76 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plans</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">For BCK, BZA, BCL, BZM, BLJ, BSE, BQH, BFY and BHV</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Pursuant to each Trust&#146;s Dividend Reinvestment Plan (the &#147;Plan&#148;),</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">common shareholders are automatically enrolled to have all distributions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of dividends and capital gains reinvested by Computershare Trust Company,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">N.A. (the &#147;Plan Agent&#148;) in the respective Trust&#146;s shares pursuant to the Plan.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareholders who do not participate in the Plan will receive all distributions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in cash paid by check and mailed directly to the shareholders of record</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(or if the shares are held in street or other nominee name, then to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nominee) by the Plan Agent, which serves as agent for the shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in administering the Plan.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">After a Trust declares a dividend or determines to make a capital gain dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tribution, the Plan Agent will acquire shares for the participants&#146; accounts,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">depending upon the circumstances described below, either (i) through</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receipt of unissued but authorized shares from the Trust (&#147;newly issued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares&#148;) or (ii) by purchase of outstanding shares on the open market,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">on the Trust&#146;s primary exchange or elsewhere (&#147;open-market purchases&#148;).</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If, on the dividend payment date, the net asset value per share (&#147;NAV&#148;) is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equal to or less than the market price per share plus estimated brokerage</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">commissions (such condition being referred to herein as &#147;market pre-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mium&#148;), the Plan Agent will invest the dividend amount in newly issued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares on behalf of the participants. The number of newly issued shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to be credited to each participant&#146;s account will be determined by dividing</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the dollar amount of the dividend by the NAV on the date the shares are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issued. However, if the NAV is less than 95% of the market price on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">payment date, the dollar amount of the dividend will be divided by 95%</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the market price on the payment date. If, on the dividend payment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">date, the NAV is greater than the market value per share plus estimated</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">brokerage commissions (such condition being referred to herein as</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#147;market discount&#148;), the Plan Agent will invest the dividend amount in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares acquired on behalf of the participants in open-market purchases.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Participation in the Plan is completely voluntary and may be terminated or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resumed at any time without penalty by notice if received and processed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the Plan Administrator prior to the dividend record date; otherwise such</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">termination or resumption will be effective with respect to any subsequently</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">declared dividend or other distribution.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan Agent&#146;s fees for the handling of the reinvestment of dividends and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distributions will be paid by each Trust. However, each participant will pay a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pro rata share of brokerage commissions incurred with respect to the Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agent&#146;s open market purchases in connection with the reinvestment of divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dends and distributions. The automatic reinvestment of dividends and dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tributions will not relieve participants of any federal income tax that may be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">payable on such dividends or distributions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust reserves the right to amend or terminate the Plan. There is</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">no direct service charge to participants in the Plan; however, each Trust</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reserves the right to amend the Plan to include a service charge payable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">by the participants. Participants that request a sale of shares through the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent are subject to a &#36;2.50 sales fee and a &#36;0.15 per share sold</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">brokerage commission. All correspondence concerning the Plan should be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">directed to the Plan Agent at P.O. Box 43078, Providence, RI 02940-3078</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or by calling (800) 699-1BFM. All overnight correspondence should be</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">For MHN</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trust offers a Dividend Reinvestment Plan (the &#147;Plan&#148;) under which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income and capital gains dividends paid by the Trust is automatically</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reinvested in additional Common Shares of the Trust. The Plan is adminis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tered on behalf of the shareholders by BNY Mellon Shareowner Services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(the &#147;Plan Agent&#148;). Under the Plan, whenever the Trust declares a dividend,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participants in the Plan will receive the equivalent in Common Shares of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust. The Plan Agent will acquire the shares for the participant&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">account either (i) through receipt of additional unissued but authorized</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares of the Trust (&#147;newly issued shares&#148;) or (ii) by purchase of outstand-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing Common Shares on the open market on the New York Stock Exchange</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or elsewhere. If, on the dividend payment date, the Trust&#146;s net asset value</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">per share is equal to or less than the market price per share plus esti-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mated brokerage commissions (a condition often referred to as a &#147;market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">premium&#148;), the Plan Agent will invest the dividend amount in newly issued</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares. If the Trust &#145;s net asset value per share is greater than the market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price per share (a condition often referred to as a &#147;market discount&#148;), the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent will invest the dividend amount by purchasing on the open mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ket additional shares. If the Plan Agent is unable to invest the full dividend</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">amount in open market purchases, or if the market discount shifts to a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">market premium during the purchase period, the Plan Agent will invest any</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">uninvested portion in newly issued shares. The shares acquired are credited</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to each shareholder&#146;s account. The amount credited is determined by divid-</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the dollar amount of the dividend by either (i) when the shares are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">newly issued, the net asset value per share on the date the shares are</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">issued or (ii) when shares are purchased in the open market, the average</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">purchase price per share.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Participation in the Plan is automatic, that is, a shareholder is automati-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cally enrolled in the Plan when he or she purchases Common Shares of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trust unless the shareholder specifically elects not to participate in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan. Shareholders who elect not to participate will receive all dividend dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tributions in cash. Shareholders who do not wish to participate in the Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">must advise the Plan Agent in writing (at the address set forth below) that</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">they elect not to participate in the Plan. Participation in the Plan is com-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pletely voluntary and may be terminated or resumed at any time without</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">penalty by writing to the Plan Agent.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan provides an easy, convenient way for shareholders to make</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">additional, regular investments in the Trust. The Plan promotes a long-term</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">strategy of investing at a lower cost. All shares acquired pursuant to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan receive voting rights. In addition, if the market price plus commissions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of a Trust&#146;s shares is above the net asset value, participants in the Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will receive shares of the Trust for less than they could otherwise purchase</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">them and with a cash value greater than the value of any cash distribution</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">77</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Automatic Dividend Reinvestment Plans (concluded)</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">they would have received. However, there may not be enough shares avail-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">able in the market to make distributions in shares at prices below the net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">asset value. Also, since the Trust does not redeem shares, the price on</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">resale may be more or less than the net asset value.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">There are no enrollment fees or brokerage fees for participating in the Plan.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan Agent&#146;s service fees for handling the reinvestment of distributions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are paid for by the Trust. However, brokerage commissions may be incurred</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">when the Trust purchases shares on the open market and shareholders will</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pay a pro rata share of any such commissions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The automatic reinvestment of dividends and distributions will not relieve</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participants of any federal, state or local income ax that may be payable</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(or required to be withheld) on such dividends. Therefore, income and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital gains may still be realized even though shareholders do not receive</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cash. Participation in the Plan generally will not affect the tax-exempt</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">status of exempt interest dividends paid by the Trust. If, when the Trust&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares are trading at a market premium, the Trust issues shares pursuant</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to the Plan that have a greater fair market value than the amount of cash</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reinvested, it is possible that all or a portion of the discount from the mar-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ket value (which may not exceed 5% of the fair market value of the Trust&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shares) could be viewed as a taxable distribution. If the discount is viewed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as a taxable distribution, it is also possible that the taxable character of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">this discount would be allocable to all the shareholders, including share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holders who do not participate in the Plan. Thus, shareholders who do not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participate in the Plan might be required to report as ordinary income a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">portion of their distributions equal to their allocable share of the discount.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">All correspondence concerning the Plan, including any questions about</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Plan, should be directed to the Plan Agent at The BNY Mellon</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareowner Services, P.O. Box 358035, Pittsburgh, PA 15252-8035,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Telephone: (866) 216-0242.</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">For MHE</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trust offers a dividend reinvestment plan (the &#147;Plan&#148;) pursuant to which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shareholders may elect to have dividends and capital gains dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tributions reinvested in Common Shares of the Trust. The Trust declares divi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dends out of net investment income, and will distribute annually net</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">realized capital gains, if any. Common Shareholders may join or withdraw</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from the Plan at any time.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If you decide to participate in the Plan, BNY Mellon Shareowner Services,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">as your Plan Agent, will automatically invest your dividends and capital</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">gains distributions in Common Shares of the Trust in your account.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Under the Plan, participants in the Plan will have their dividends reinvested</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in Common Shares of the Trust on valuation date. If the market price per</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Share on valuation date equals or exceeds net asset value per</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Share on that date, the Trust will issue new Common Shares to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">participants at the higher of net asset value or 95% of the market price. If</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net asset value per Common Share on valuation date exceeds the market</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">price per Common Share on that date, or if the Board should declare a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dividend or capital gains distribution payable to the Common Shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">only in cash, the agent will buy Common Shares in the open market on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">NYSE Amex, or elsewhere. If, before the Plan Agent has completed its pur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chases, the market price exceeds the net asset value per Common Share,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the average per share purchase price paid by the Plan Agent may exceed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the net asset value of the Trust&#146;s Common Shares, resulting in the acquisi-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion of fewer Common Shares than if the dividend or distribution had been</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">paid in Common Shares by the Trust.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan Agent maintains all shareholder accounts in the Plan and fur-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nishes written confirmation of all transactions in the accounts, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information needed by shareholders for tax records. Common Shares in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">account of each Plan participant will be held by the Plan Agent in noncer-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tificated form in the name of the participant, and each shareholder&#146;s proxy</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will include those shares received pursuant to the Plan. Holders of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Common Shares who do not elect to participate in the Plan will receive all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">such amounts in cash paid by check mailed directly to the record share-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">holder by BNY Mellon Shareowner Services, as dividend paying agent.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Experience under the Plan may indicate that changes are desirable.</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accordingly, the Trust reserves the right to amend or terminate the Plan.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Plan Agent&#146;s fees for the handling of the reinvestment of dividends and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">distributions will be paid by the Trust. Each participant will pay a pro rata</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share of brokerage commissions incurred with respect to the Plan Agent&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">open market purchases in connection with the reinvestment of dividends or</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">capital gains distributions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan participants will receive tax information annually for personal records</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and to help prepare federal income tax returns. The automatic reinvestment</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of dividends and capital gains distributions does not relieve plan partici-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pants of any income tax which may be payable on dividends or distribu-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan participants may withdraw from the Plan at any time by writing to the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan Agent at the address noted below. If you withdraw, you will receive a</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">share certificate in your name for all full Common Shares credited to your</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">account under the Plan and a cash payment for any fraction of a share</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">credited to your account. If you desire, the Plan Agent will sell your shares</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">in the Plan and send you the proceeds of the sale, less brokerage commis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sions.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If your shares are held in the name of a brokerage firm, bank, or other</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">nominee, you should contact your nominee to see if it will participate in the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plan on your behalf. If you wish to participate in the Plan, but your broker-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">age firm, bank or nominee is unable to participate on your behalf, you</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">should request that your shares be re-registered in your own name, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">will enable your participation in the Plan.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Any correspondence concerning the Plan should be directed to the Plan</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Agent at BNY Mellon Shareowner Services, P.O. Box 358035, Pittsburgh, PA</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15252-8035,Telephone: (866) 216-0242.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">78 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<TR valign="bottom">
	<TD align=left colspan=2>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Trustees</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Number of BlackRock-</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Advised Registered</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Companies</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Time</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;RICs&#148;) Consisting of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Served as</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Portfolios</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Public</FONT></B>&nbsp;</TD>
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	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trusts</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">a Trustee</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;Portfolios&#148;) Overseen</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Directorships</FONT></B>&nbsp;</TD>
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	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Non-Interested Trustees</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
</TR>
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	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard E. Cavanagh</FONT></B>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Arch Chemical</FONT>&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Board</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insurance Company of America since 1998; Trustee, Educational Testing</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(chemical and allied</FONT>&nbsp;</TD>
</TR>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trustee</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Service from 1997 to 2009 and Chairman from 2005 to 2009; Senior</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">products)</FONT>&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1946</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Advisor, The Fremont Group since 2008 and Director thereof since 1996;</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
</TR>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Adjunct Lecturer, Harvard University since 2007; President and Chief</FONT>&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Executive Officer of The Conference Board, Inc. (global business research</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">organization) from 1995 to 2007.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vice Chair of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Partner of Robards &amp; Company, LLC (financial advisory firm) since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">AtriCure, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Board,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1987; Co-founder and Director of the Cooke Center for Learning and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(medical devices);</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chair of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Development, (a not-for-profit organization) since 1987; Director of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Care Investment</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1950</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Enable Medical Corp. from 1996 to 2005.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trust, Inc. (health</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">care real estate</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trustee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment trust)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">G. Nicholas Beckwith, III</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman and Chief Executive Officer, Arch Street Management, LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(Beckwith Family Foundation) and various Beckwith property companies</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 2005;Chairman of the Board of Directors, University of Pittsburgh</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1945</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Medical Center since 2002; Board of Directors, Shady Side Hospital</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Foundation since 1977; Board of Directors, Beckwith Institute for</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Innovation In Patient Care since 1991; Member, Advisory Council on</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Biology and Medicine, Brown University since 2002; Trustee, Claude</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Worthington Benedum Foundation (charitable foundation) since 1989;</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Board of Trustees, Chatham University since 1981; Board of Trustees,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">University of Pittsburgh since 2002; Emeritus Trustee, Shady Side</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Academy since 1977; Chairman and Manager, Penn West Industrial</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trucks LLC (sales, rental and servicing of material handling equipment)</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">from 2005 to 2007; Chairman, President and Chief Executive Officer,</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Beckwith Machinery Company (sales, rental and servicing of construction</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and equipment) from 1985 to 2005; Member of the Board of Directors,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">National Retail Properties (REIT) from 2006 to 2007.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kent Dixon</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant/Investor since 1988.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD 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 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1937</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant/Editor of The Journal of Portfolio Management since 2006;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Professor in the Practice of Finance and Becton Fellow, Yale University, -</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">School of Management, since 2006; Adjunct Professor of Finance and</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1948</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Becton Fellow, Yale University from 1994 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kathleen F. Feldstein</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President of Economics Studies, Inc. (private economic consulting</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The McClatchy</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to Emeritus thereof since 2008; Member of the Board of Partners</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(publishing)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1941</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Community Healthcare, Inc. since 2005; Member of the Corporation of</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 1992; Member of the Visiting Committee to the Harvard University</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Art Museum since 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Financial Officer of JP Morgan &amp; Co., Inc. from 1990 to 1995.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Member of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Audit</FONT>&nbsp;</TD>
	<TD 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 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1939</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Committee</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Kelso</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">equipment) since 2000.</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Capital Corp.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1942</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">79</FONT></P>

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	<TD align=left colspan=4>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Trustees (continued)</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Number of BlackRock-</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Advised Registered</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Companies</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">of Time</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;RICs&#148;) Consisting of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Served as</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Portfolios</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Public</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trusts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">a Trustee</FONT></B><B><SUP><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(&#147;Portfolios&#148;) Overseen</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Directorships</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Non-Interested Trustees</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1
</FONT></SUP></B><B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">(concluded)</FONT></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Dean, Columbia Business School since 2004; Columbia faculty</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ADP (data and</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">member since 1988; Co-Director, Columbia Business School&#146;s</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information services),</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Entrepreneurship Program from 1997 to 2004; Visiting Professor,</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">KKR Financial</FONT>&nbsp;</TD>
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<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1958</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">John F. Kennedy School of Government at Harvard University and</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Corporation (finance),</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Harvard Business School since 1985 and at the University of</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Metropolitan Life</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chicago since 1994; Chairman, U.S. Council of Economic Advisers</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Insurance Company</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">under the President of the United States from 2001 to 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(insurance)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">W. Carl Kester</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">George Fisher Baker Jr. Professor of Business Administration, Harvard</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">104 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Business School; Deputy Dean for Academic Affairs, since 2006;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">101 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Unit Head, Finance, Harvard Business School, from 2005 to 2006;</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1951</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Senior Associate Dean and Chairman of the MBA Program of Harvard</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Business School, from 1999 to 2005; Member of the faculty of</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Harvard Business School since 1981; Independent Consultant</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">since 1978.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=4>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustees serve until their resignation, removal or death, or until December 31 of the
year in which they turn 72.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Date shown is the earliest date a person has served for any of the Trusts covered by this
annual report. Following the combination of Merrill Lynch</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment Managers, L.P. (&#147;MLIM&#148;) and BlackRock, Inc. (&#147;BlackRock&#148;) in September 2006, the various legacy MLIM and legacy BlackRock Fund
boards</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows directors as joining the Funds&#146; board in</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007, each trustee first became a member of the board of trustees of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III,</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Interested Trustees</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">3</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Research &amp; Management Company from 2000 to 2005;</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chairman of the Board of Trustees, State Street Research Mutual</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1945</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds from 2000 to 2005; Chairman, SSR Realty from 2000 to 2004.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Henry Gabbay</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustee</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">173 RICs consisting of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">283 Portfolios</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1947</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Funds and BlackRock Bond Allocation Target Shares from 2005 to</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=6>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007; Treasurer of certain closed-end funds in the BlackRock fund</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">complex from 1989 to 2006.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Mr. Davis is an &#147;interested person,&#148; as defined in the Investment Company Act
of 1940, of the Trusts based on his position with BlackRock, Inc.</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and its affiliates. Mr. Gabbay is an &#147;interested person&#148; of the Trusts based on his former positions with BlackRock, Inc. and its affiliates as well as</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">his ownership of BlackRock, Inc. and PNC Securities. Trustees serve until their resignation, removal or death, or until December 31 of the year in</FONT><BR>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">which they turn 72.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">80 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Trustees (continued)</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=13%></TD>
     <TD width=10%></TD>
     <TD width=10%></TD>
     <TD width=65%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Position(s)</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Name, Address</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Held with</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Length of</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">and Year of Birth</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trusts</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Time Served</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Principal Occupation(s) During Past 5 Years</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Officers</FONT></B><B><SUP><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD bgcolor="#e9f1fb" align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Anne F. Ackerley</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Chief</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Operating Officer of BlackRock&#146;s Account Management Group (AMG) since 2009; Chief Operating Officer of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Executive</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock&#146;s U.S. Retail Group from 2006 to 2009; Head of BlackRock&#146;s Mutual Fund Group from 2000 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1962</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Brendan Kyne</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Vice</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock&#146;s U.S. Retail</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">President</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2009</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008;</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Associate of BlackRock, Inc. from 2002 to 2004.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1977</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Neal J. Andrews</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Financial</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1966</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jay M. Fife</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Treasurer</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Investment Managers, L.P. (&#147;MLIM&#148;) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MLIM Fund Services Group from 2001 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1970</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Brian P. Kindelan</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Compliance</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officer</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1959</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Howard B. Surloff</FONT></B>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Secretary</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Since</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.)</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">40 East 52nd Street</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2007</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of Goldman Sachs Asset Management, L.P. from 1993 to 2006.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1965</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Officers of the Trusts serve at the pleasure of the Board.</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Trusts retired. The Trusts&#146; Boards of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Trustees wish Mr. Burke well in his retirement.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Trusts, and Brendan Kyne</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">became Vice President of the Trusts.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">81</FONT></P>

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<TABLE border=0 cellspacing=0>
<TR>
     <TD width=14%></TD>
     <TD width=16%></TD>
     <TD width=17%></TD>
     <TD width=18%></TD>
     <TD width=16%></TD>
     <TD width=16%></TD></TR>
<TR valign="bottom">
	<TD align=left colspan=3>
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Officers and Trustees (concluded)</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Custodians</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Transfer Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Auction Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment Advisor</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Agent</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Independent</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Bank</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Common Shares</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Preferred Shares</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Advisors, LLC</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">State Street Bank</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Registered Public</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Computershare Trust</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BNY Mellon</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">WIlmington, DE 19809</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and Trust Company</FONT>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Accounting Firm</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Boston, MA 02101</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Company, N.A.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareowner Services</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, NJ 08540</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Deloitte &amp; Touche </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Providence, RI 02940</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jersey City, NJ 07310</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Princeton, NJ 08540</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Bank of</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BNY Mellon</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Sub-Advisors</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Legal Counsel</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Address of the Trusts</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York Mellon</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Shareowner Services</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Financial</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Skadden, Arps, Slate,</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100 Bellevue Parkway</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Jersey City, NJ 07310</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management, Inc.</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Meagher &amp; Flom </FONT><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">LLP</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Wilmington, DE 19809</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">10286</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10022</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">New York, NY 10036</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock Investment</FONT>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Management, LLC</FONT><SUP><FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT></SUP>&nbsp;</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>
&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Plainsboro, NJ 08536</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For all Trusts except MHN.</FONT>&nbsp;</TD>
	<TD 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;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For MHN.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD 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 colspan=2>
 &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For all Trusts except MHN and MHE.</FONT>&nbsp;</TD>
	<TD 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;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">For MHN and MHE.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">82 ANNUAL REPORT AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Proxy Results</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009 to elect director or trustee nominees</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of each Trust:</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=34%></TD>
     <TD width=16%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD>
     <TD width=9%></TD>
     <TD width=10%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Approved the Class II Trustees as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,359,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,207</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">971</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,359,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">168,207</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,018,919</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,930</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">581</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">37</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,018,919</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">76,930</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,406,148</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">358,067</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,248</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,408,148</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">356,067</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,013,631</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,893</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">455</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,013,631</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,893</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,116,490</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,935</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">498</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,116,490</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,935</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,780,632</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,066</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1389</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,780,632</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,066</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,531,695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,287</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">526</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,531,695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,287</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,353,653</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,002</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">920</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,353,653</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">224,002</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,516,185</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,265</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">240</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,516,185</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">18,265</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=7 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B></TD>
</TR>
<TR>
	<TD colspan=7><HR noshade size=1></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD 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 style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,315,807</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">211,855</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">3,005,014</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">90,835</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">6,403,636</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">360,579</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,012,377</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">8,147</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,116,490</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">52,935</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,780,632</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">204,066</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,531,695</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">69,287</FONT>&nbsp;</TD>
	<TD 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>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">4,200,985</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">376,670</FONT>&nbsp;</TD>
	<TD 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 style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,521,232</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">13,218</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Approved the Trustees as follows:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">G. Nicholas Beckwith, III</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard E. Cavanagh</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Richard S. Davis</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,736,532</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,880,624</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,710,218</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,906,938</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,835,131</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,782,025</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,982</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,903</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,639</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,982</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kent Dixon</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Frank J. Fabozzi</FONT></B>&nbsp;</TD>
	<TD align=right colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Kathleen F. Feldstein</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,442,311</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,174,845</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,057</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,101</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,527,378</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,089,778</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,982</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">345</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,903</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,639</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">James T. Flynn</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Henry Gabbay</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Jerrold B. Harris</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,453,277</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,163,879</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,832,996</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,784,160</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,734,619</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,882,537</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,982</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,030,560</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">98,982</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,903</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,639</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">R. Glenn Hubbard</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">W. Carl Kester</FONT></B>&nbsp;</TD>
	<TD align=center colspan=2 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Karen P. Robards</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Votes For</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Withheld</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN</FONT>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,748,350</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,868,806</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">5,057</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,101</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">26,768,455</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1,848,701</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,903</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,639</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">345</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT><SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1</FONT></SUP>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">2,022,903</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">106,639</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp;<SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Voted on by holders of Preferred Shares only.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">83</FONT></P>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always"></div>



<!--$$/page=-->
<A name="page_86"></A>

<P align="left">
<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (continued)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Trust Certification</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Those Trusts listed for trading on the New York Stock Exchange (&#147;NYSE&#148;)</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">have filed with the NYSE their annual chief executive officer certification</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">regarding compliance with the NYSE&#146;s listing standards. The Trusts filed</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with the Securities and Exchange Commission (&#147;SEC&#148;) the certification of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">its chief executive officer and chief financial officer required by section 302</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of the Sarbanes-Oxley Act.</FONT></P>
<P align="left">
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Dividend Policy</FONT></B><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts&#146; dividend policy is to distribute all or a portion of their net invest-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment income to its shareholders on a monthly basis. In order to provide</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders with a more stable level of dividend distributions, the Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may at times pay out less than the entire amount of net investment income</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">earned in any particular month and may at times in any particular month</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">pay out such accumulated but undistributed income in addition to net</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment income earned in that month. As a result, the dividends paid by</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts for any particular month may be more or less than the amount of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">net investment income earned by the Trusts during such month. The Trusts&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">current accumulated but undistributed net investment income, if any, is dis-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">closed in the Statements of Assets and Liabilities, which comprises part of</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the financial information included in this report.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts do not make available copies of their Statements of Additional</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Information because the Trusts&#146; shares are not continuously offered, which</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">means that the Statement of Additional Information of each Trust has not</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">been updated after completion of the respective Trust&#146;s offerings and the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">information contained in each Trust&#146;s Statement of Additional Information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may have become outdated.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Other than the revisions discussed on the Board approvals on page 86,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">there were no material changes in the Trusts&#146; investment objectives of poli-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cies or to the Trusts&#146; charters or by-laws that were not approved by the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">shareholders or in the principal risk factors associated with investment in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the Trusts. There have been no changes in the persons who are primarily</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">responsible for the day-to-day management of the Trusts&#146; portfolio.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Quarterly performance, semi-annual and annual reports and other informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion regarding the Trusts may be found on BlackRock&#146;s website, which can</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">be accessed at http://www.blackrock.com. This reference to BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">website is intended to allow investors public access to information regard-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ing the Trusts and does not, and is not intended to, incorporate BlackRock&#146;s</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">website into this report.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Electronic Delivery</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Electronic copies of most financial reports are available on the Trusts&#146; web-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sites or shareholders can sign up for e-mail notifications of quarterly state-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ments, annual and semi-annual reports by enrolling in the Trusts&#146; electronic</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">delivery program.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Shareholders Who Hold Accounts with Investment Advisors, Banks</FONT><BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">or Brokerages:</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Please contact your financial advisor to enroll. Please note that not all</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment advisors, banks or brokerages may offer this service.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Householding</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts will mail only one copy of shareholder documents, including</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">annual and semi-annual reports and proxy statements, to shareholders</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with multiple accounts at the same address. This practice is commonly</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">called &#147;householding&#148; and it is intended to reduce expenses and eliminate</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">duplicate mailings of shareholder documents. Mailings of your shareholder</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">documents may be householded indefinitely unless you instruct us other-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">wise. If you do not want the mailing of these documents to be combined</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with those for other members of your household, please contact the Trusts</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at (800) 441-7762.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Quarterly Schedule of Investments</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Each Trust files its complete schedule of portfolio holdings with the SEC</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">for the first and third quarters of each fiscal year on Form N-Q. The Trusts&#146;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Forms N-Q are available on the SEC&#146;s website at http://www.sec.gov and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may also be reviewed and copied at the SEC&#146;s Public Reference Room in</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Washington, DC. Information on the operation of he Public Reference Room</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">may be obtained by calling (202) 551-8090. Each Trust&#146;s Forms N-Q may</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">also be obtained upon request and without charge by calling</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(800) 441-7762</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Proxy Voting Policies and Procedures</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">A description of the policies and procedures that the Trusts use to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">determine how to vote proxies relating to portfolio securities is available</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(1) without charge, upon request, by calling toll-free (800) 441-7762;</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">(2) at www.blackrock.com; and (3) on the Securities and Exchange</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Commission&#146;s website at http://www.sec.gov.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-MedCnd,Arial,Helvetica,sans-serif">Availability of Proxy Voting Record</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Information about how the Trusts voted proxies relating to securities</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">held in the Trusts&#146; portfolio during the most recent 12-month period</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ended June 30 is available upon request and without charge (1) at</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">www.blackrock.com or by calling (800) 441-7762 and (2) on the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Securities and Exchange Commission&#146;s website at http://www.sec.gov.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">84 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (continued)</FONT>&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Board Approvals</FONT></B>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">On September 12, 2008, the Board of BCK, MHN and BSE voted unani-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at the time of investment, and the Trusts will not be required to dispose</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mously to change certain investment guidelines of the Trusts. Under nor-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of municipal bonds they hold in the event of subsequent downgrades.</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mal circumstances, the Trusts are required to invest at least 80% of</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The Trusts&#146; new investment policy is, under normal conditions, to invest</FONT>&nbsp;</TD>
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	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">their managed assets in municipal bonds either (i) insured under an</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at least 80% of their assets in municipal bonds insured by insurers or</FONT>&nbsp;</TD>
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	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">insurance policy purchased by the Trusts or (ii) insured under an insur-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">other entities with claims-paying abilities rated at least investment grade at</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ance policy obtained by the issuer of the municipal bond or any other</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the time of investment. Due to recent downgrades, some of the insurers</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">party. Historically, the Trusts have had an additional nonfundamental</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">insuring a portion of the Trusts&#146; current holdings are already rated below</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">investment policy limiting their purchases of insured municipal bonds to</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the highest rating category.</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">those bonds insured by insurance providers with claims-paying abilities</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rated AAA or Aaa at the time of investment.</FONT>&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=left colspan=6>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Effective September 13, 2008, following approval by the Trusts&#146; Board and</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the applicable ratings agencies, the Board amended the terms of the Trusts&#146;</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Following the onset of the credit and liquidity crises currently troubling</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Governing Instrument in order to allow the Trusts to enter into TOB transac-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the financial markets, the applicable rating agencies lowered the claims-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions, the proceeds of which were used to redeem a portion of the Trusts&#146;</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">paying ability rating of most of the municipal bond insurance providers</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">Preferred Shares. Accordingly, the definition of Inverse Floaters was amended</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">below the highest rating category. As a result, the Advisor recommended,</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to incorporate the Trusts&#146; permissible ratio of floating rate instruments into</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">and the Board approved, an amended policy with respect to the pur-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">inverse floating rate instruments. Additionally, conforming changes and cer-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">chase of insured municipal bonds that such bonds must be insured by</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tain formula modifications concerning inverse floaters were made to the def-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">insurance providers or other entities with claims-paying abilities rated</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">initions of Moody&#146;s Discount Factor and S&amp;P Discount Factor, as applicable,</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">at least investment grade. This investment grade restriction is measured</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to integrate the Trusts&#146; investments in TOBs into applicable calculations.</FONT>&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp;<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Section 19 Notices</FONT></B>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">The amounts and sources of distributions reported are only estimates and</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">the tax regulations. Each Trust will send you a Form 1099-DIV each calen-</FONT>&nbsp;</TD>
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	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are not being provided for tax reporting purposes. The actual amounts and</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">dar year that will tell you how to report these distributions for federal</FONT>&nbsp;</TD>
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	<TD align=left colspan=3>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">sources for tax reporting purposes will depend upon each Trust&#146;s invest-</FONT>&nbsp;</TD>
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<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">income tax purposes.</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
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	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">ment experience during the year and may be subject to changes based on</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Cumulative Distributions</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=4>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">% Breakdown of the Total Cumulative</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">for the Fiscal Year-to-Date</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=right colspan=4 style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Distributions for the Fiscal Year-to-Date</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Per</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Net Realized</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Total Per</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=left>
 &nbsp;<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Return of</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Return of</FONT></B>&nbsp;</TD>
	<TD align=right>
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Common</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Gains</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Share</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Income</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Gains</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Capital</FONT></B>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">Share</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCK</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.702000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.702000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZA</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.789000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.002917</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.791917</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BCL</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.736500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.736500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BZM</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.792300</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.003211</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.795511</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHN.</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.675582</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.675582</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BLJ</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.861000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.861000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BSE</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.718500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.718500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BQH</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.846000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.003939</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.849939</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BFY.</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.795000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.795000</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BHV</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.891852</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.159066</FONT>&nbsp;</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;1.050918</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">85%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">15%</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right>
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">MHE</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.626803</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#151;</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">&#36;0.626803</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">0%</FONT>&nbsp;</TD>
	<TD align=right style="border-bottom:1px solid #000000;">
<FONT size=1 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">100%</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">85</FONT></P>

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<FONT color="#0035c4" size=4 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">Additional Information (concluded)</FONT><BR>
<BR>
<B><FONT color="#0035c4" size=1 face="FranklinGothic-DemiCnd,Arial,Helvetica,sans-serif">BlackRock Privacy Principles</FONT></B></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock is committed to maintaining the privacy of its current and for-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">mer fund investors and individual clients (collectively, &#147;Clients&#148;) and to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">safeguarding their non-public personal information. The following informa-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tion is provided to help you understand what personal information</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock collects, how we protect that information and why in certain</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cases we share such information with select parties.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">If you are located in a jurisdiction where specific laws, rules or regulations</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">require BlackRock to provide you with additional or different privacy-related</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">rights beyond what is set forth below, then BlackRock will comply with those</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">specific laws, rules or regulations.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock obtains or verifies personal non-public information from and</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">about you from different sources, including the following: (i) information we</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">receive from you or, if applicable, your financial intermediary, on applica-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">tions, forms or other documents; (ii) information about your transactions</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">with us, our affiliates, or others; (iii) information we receive from a consumer</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">reporting agency; and (iv) from visits to our websites.</FONT></P>
<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">BlackRock does not sell or disclose to non-affiliated third parties any non-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">public personal information about its Clients, except as permitted by law</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">or as is necessary to respond to regulatory requests or to service Client</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">accounts. These non-affiliated third parties are required to protect the</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">confidentiality and security of this information and to use it only for its</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">intended purpose.</FONT><BR>
<BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">We may share information with our affiliates to service your account or to</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">provide you with information about other BlackRock products or services</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">that may be of interest to you. In addition, BlackRock restricts access</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to non-public personal information about its Clients to those BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">employees with a legitimate business need for the information. BlackRock</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">maintains physical, electronic and procedural safeguards that are designed</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">to protect the non-public personal information of its Clients, including pro-</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">cedures relating to the proper storage and disposal of such information.</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">86 ANNUAL REPORT</FONT></P>
<P align="left">
<FONT size=1 face="FranklinGothic-Book,Arial,Helvetica,sans-serif">AUGUST 31, 2009</FONT></P>

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<P align="left">
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">volatility of net asset value and market price of the Common Shares and the risk that fluctuations in the short-term dividend rates of the Preferred Shares,</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein</FONT><BR>
<FONT size=2 face="FranklinGothic-BookCnd,Arial,Helvetica,sans-serif">are as dated and are subject to change.</FONT></P>
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<BR>

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 2 &#150; Code of Ethics &#150; The registrant (or the &#147;Fund&#148;) has adopted a code of ethics, as of the end</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the period covered by this report, applicable to the registrant&#146;s principal executive officer,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">principal financial officer and principal accounting officer, or persons performing similar</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">functions. During the period covered by this report, there have been no amendments to or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">waivers granted under the code of ethics. A copy of the code of ethics is available without</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">charge at www.blackrock.com.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 3 &#150; Audit Committee Financial Expert &#150; The registrant&#146;s board of directors or trustees, as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">applicable (the &#147;board of directors&#148;) has determined that (i) the registrant has the following</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee financial experts serving on its audit committee and (ii) each audit</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">committee financial expert is independent:</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kent Dixon</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Frank J. Fabozzi</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James T. Flynn</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">W. Carl Kester</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Karen P. Robards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Robert S. Salomon, Jr. (retired effective December 31, 2008)</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The registrant&#146;s board of directors has determined that W. Carl Kester and Karen P. Robards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Prof. Kester has a thorough understanding of generally accepted accounting principles,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements and internal control over financial reporting as well as audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">functions. Prof. Kester has been involved in providing valuation and other financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consulting services to corporate clients since 1978. Prof. Kester&#146;s financial consulting</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">services present a breadth and level of complexity of accounting issues that are generally</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">comparable to the breadth and complexity of issues that can reasonably be expected to be</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">raised by the registrant&#146;s financial statements.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Ms. Robards has a thorough understanding of generally accepted accounting principles,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements and internal control over financial reporting as well as audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">functions. Ms. Robards has been President of Robards &amp; Company, a financial advisory</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">where she was responsible for evaluating and assessing the performance of companies based</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">on their financial results. Ms. Robards has over 30 years of experience analyzing financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">statements. She also is a member of the audit committee of one publicly held company and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a non-profit organization.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under applicable securities laws, a person determined to be an audit committee financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">expert will not be deemed an &#147;expert&#148; for any purpose, including without limitation for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">purposes of Section 11 of the Securities Act of 1933, as a result of being designated or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">identified as an audit committee financial expert. The designation or identification as an</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee financial expert does not impose on such person any duties, obligations, or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">liabilities greater than the duties, obligations, and liabilities imposed on such person as a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">member of the audit committee and board of directors in the absence of such designation or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">identification.</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 4 &#150; Principal Accountant Fees and Services</FONT>&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(a) Audit Fees</FONT></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(b) Audit-Related Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">1</FONT></SUP></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(c) Tax Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">2</FONT></SUP></B>&nbsp;</TD>
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(d) All Other Fees</FONT></B><B><SUP><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">3</FONT></SUP></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Fiscal Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Entity Name</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
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&nbsp;</TD>
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&nbsp;</TD>
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<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Municipal Bond</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;17,700</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;16,800</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;3,500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;3,500</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6,100</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;6,100</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1,028</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1,049</FONT>&nbsp;</TD>
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<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Trust</FONT>&nbsp;</TD>
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&nbsp;</TD>
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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1 The nature of the services include assurance and related services reasonably related to the performance of the audit of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements not included in Audit Fees.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 The nature of the services include tax compliance, tax advice and tax planning.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3 The nature of the services include a review of compliance procedures and attestation thereto.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)(1) Audit Committee Pre-Approval Policies and Procedures:</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The registrant&#146;s audit committee (the &#147;Committee&#148;) has adopted policies and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures with regard to the pre-approval of services. Audit, audit-related and tax</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compliance services provided to the registrant on an annual basis require specific pre-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval by the Committee. The Committee also must approve other non-audit services</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">provided to the registrant and those non-audit services provided to the registrant&#146;s affiliated</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">service providers that relate directly to the operations and the financial reporting of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant. Certain of these non-audit services that the Committee believes are a) consistent</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">with the SEC&#146;s auditor independence rules and b) routine and recurring services that will</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">not impair the independence of the independent accountants may be approved by the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Committee without consideration on a specific case-by-case basis (&#147;general pre-approval&#148;).</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The term of any general pre-approval is 12 months from the date of the pre-approval, unless</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Committee provides for a different period. Tax or other non-audit services provided to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the registrant which have a direct impact on the operation or financial reporting of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant will only be deemed pre-approved provided that any individual project does not</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">exceed &#36;10,000 attributable to the registrant or &#36;50,000 for all of the registrants the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Committee oversees. For this purpose, multiple projects will be aggregated to determine if</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">they exceed the previously mentioned cost levels.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any proposed services exceeding the pre-approved cost levels will require specific</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">pre-approval by the Committee, as will any other services not subject to general pre-</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval (e.g., unanticipated but permissible services). The Committee is informed of each</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">service approved subject to general pre-approval at the next regularly scheduled in-person</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">board meeting. At this meeting, an analysis of such services is presented to the Committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">for ratification. The Committee may delegate to one or more of its members the authority to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">approve the provision of and fees for any specific engagement of permitted non-audit</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">services, including services exceeding pre-approved cost levels.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(e)(2) None of the services described in each of Items 4(b) through (d) were approved by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(f) Not Applicable</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(g) </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Affiliates&#146; Aggregate Non-Audit Fees:</FONT></U></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=39%></TD>
     <TD width=31%></TD>
     <TD width=28%></TD></TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Current Fiscal Year</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Previous Fiscal Year</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Entity Name</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
	<TD align=center style="border-bottom:3px double #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">End</FONT></B>&nbsp;</TD>
</TR>
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	<TD align=left>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;418,128</FONT>&nbsp;</TD>
	<TD align=center>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;415,649</FONT>&nbsp;</TD>
</TR>
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	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Bond Trust</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
</TABLE><BR>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(h) The registrant&#146;s audit committee has considered and determined that the provision of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">non-audit services that were rendered to the registrant&#146;s investment adviser (not including</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">any non-affiliated sub-adviser whose role is primarily portfolio management and is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">subcontracted with or overseen by the registrant&#146;s investment adviser), and any entity</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">controlling, controlled by, or under common control with the investment adviser that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">provides ongoing services to the registrant that were not pre-approved pursuant to paragraph</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accountant&#146;s independence.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Regulation S-X Rule 2-01(c)(7)(ii) &#150; &#36;407,500, 0%</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 5 &#150; Audit Committee of Listed Registrants &#150; The following individuals are members of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant&#146;s separately-designated standing audit committee established in accordance with</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Kent Dixon</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Frank J. Fabozzi</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">James T. Flynn</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">W. Carl Kester</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Karen P. Robards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Robert S. Salomon, Jr. (retired effective December 31, 2008)</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 6 &#150; Investments</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a) The registrant&#146;s Schedule of Investments is included as part of the Report to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Stockholders filed under Item 1 of this form.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(b) Not Applicable due to no such divestments during the semi-annual period covered since</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the previous Form N-CSR filing.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 7 &#150; Disclosure of Proxy Voting Policies and Procedures for Closed-End Management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Companies &#150; The board of directors has delegated the voting of proxies for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund securities to the Fund&#146;s investment adviser (&#147;Investment Adviser&#148;) pursuant to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s proxy voting guidelines. Under these guidelines, the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Adviser will vote proxies related to Fund securities in the best interests of the Fund and its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">stockholders. From time to time, a vote may present a conflict between the interests of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund&#146;s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">person of the Fund or the Investment Adviser, on the other. In such event, provided that the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s Equity Investment Policy Oversight Committee, or a sub-committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">thereof (the &#147;Oversight Committee&#148;) is aware of the real or potential conflict or material</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">non-routine matter and if the Oversight Committee does not reasonably believe it is able to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">follow its general voting guidelines (or if the particular proxy matter is not addressed in the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">guidelines) and vote impartially, the Oversight Committee may retain an independent</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s clients. If the Investment Adviser determines not to retain an</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">independent fiduciary, or does not desire to follow the advice of such independent fiduciary,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Oversight Committee shall determine how to vote the proxy after consulting with the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Adviser&#146;s Portfolio Management Group and/or the Investment Adviser&#146;s Legal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Compliance Department and concluding that the vote cast is in its client&#146;s best interest</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">notwithstanding the conflict. A copy of the Fund&#146;s Proxy Voting Policy and Procedures are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio securities during the most recent 12-month period ended June 30 is available</FONT></P>

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<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">without charge, (i) at www.blackrock.com and (ii) on the SEC&#146;s website at</FONT><BR>
<U><FONT color="#0000ff" size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">http://www.sec.gov</FONT></U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 8 &#150; Portfolio Managers of Closed-End Management Investment Companies &#150; as of August 31,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2009.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(1) The registrant (or &#147;Fund&#148;) is managed by a team of investment professionals</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">comprised of Phillip Soccio, CFA, Director at BlackRock, Theodore R. Jaeckel, Jr.,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">CFA, Managing Director at BlackRock and Walter O&#146;Connor, Managing Director at</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock. Each is a member of BlackRock&#146;s municipal tax-exempt management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">group. Each is jointly responsible for the day-to-day management of the registrant&#146;s</FONT></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=19%></TD>
     <TD width=11%></TD>
     <TD width=19%></TD>
     <TD width=10%></TD>
     <TD width=12%></TD>
     <TD width=17%></TD>
     <TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=center colspan=7>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio, which includes setting the registrant&#146;s overall investment strategy,</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=7>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">overseeing the management of the registrant and/or selection of its investments.</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=7>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Messrs. Soccio, Jaeckel and O&#146;Connor have been members of the registrant&#146;s</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=6 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio management team since 2007, 2006 and 2006,
respectively.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Biography</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Phillip Soccio</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Director of BlackRock, Inc. since 2009; Vice President of BlackRock, Inc.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=5 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">from 2005 to 2008; Associate of BlackRock, Inc. from 2002 to 2004.</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Theodore R. Jaeckel, Jr.</FONT>&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director at BlackRock, Inc. since 2006; Managing Director of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=2>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Walter O&#146;Connor</FONT>&nbsp;</TD>
	<TD align=left colspan=5>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Managing Director of BlackRock, Inc. since 2006; Managing Director of</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left colspan=4 style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3 style="border-bottom:1px solid #000000;">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(2) As of August 31, 2009:</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=right colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(ii) Number of Other Accounts Managed</FONT></B>&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(iii) Number of Other Accounts and</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=2>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">and Assets by Account Type</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center colspan=3>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Assets for Which Advisory Fee is</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Performance-Based</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other Pooled</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other Pooled</FONT></B>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(i) Name of</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Registered</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Registered</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vehicles</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Accounts</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Investment</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Vehicles</FONT></B>&nbsp;</TD>
	<TD align=center>
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Accounts</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Companies</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<B><FONT size=1 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Companies</FONT></B>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Walter O&#146;Connor</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">76</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:3px double #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;18.5 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:3px double #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Theodore R. Jaeckel,</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">76</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;18.5 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD bgcolor="#ccffff" align=left style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Phillip Soccio</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">8</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
	<TD bgcolor="#ccffff" align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;1.54 Billion</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
	<TD align=center style="border-bottom:1px solid #000000;">
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;0</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left colspan=3>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(iv) Potential Material Conflicts of Interest</FONT>&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
	<TD align=left>
&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock and its affiliates (collectively, herein &#147;BlackRock&#148;) has built a professional</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">working environment, firm-wide compliance culture and compliance procedures and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">systems designed to protect against potential incentives that may favor one account over</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">another. BlackRock has adopted policies and procedures that address the allocation of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment opportunities, execution of portfolio transactions, personal trading by employees</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and other potential conflicts of interest that are designed to ensure that all client accounts are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">treated equitably over time. Nevertheless, BlackRock furnishes investment management and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">advisory services to numerous clients in addition to the Fund, and BlackRock may,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consistent with applicable law, make investment recommendations to other clients or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts (including accounts which are hedge funds or have performance or higher fees</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">such fees), which may be the same as or different from those made to the Fund. In addition,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, its affiliates and significant shareholders and any officer, director, stockholder</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or employee may or may not have an interest in the securities whose purchase and sale</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders, or any officer, director, stockholder, employee or any member of their</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">families may take different actions than those recommended to the Fund by BlackRock with</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respect to the same securities. Moreover, BlackRock may refrain from rendering any advice</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or services concerning securities of companies of which any of BlackRock&#146;s (or its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">affiliates&#146; or significant shareholders&#146;) officers, directors or employees are directors or</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">officers, or companies as to which BlackRock or any of its affiliates or significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders or the officers, directors and employees of any of them has any substantial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">economic interest or possesses material non-public information. Each portfolio manager</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">also may manage accounts whose investment strategies may at times be opposed to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">strategy utilized for a fund. In this connection, it should be noted that a portfolio manager</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">may currently manage certain accounts that are subject to performance fees. In addition, a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio manager may assist in managing certain hedge funds and may be entitled to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">receive a portion of any incentive fees earned on such funds and a portion of such incentive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">future manage other such accounts or funds and may be entitled to receive incentive fees.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">fairly. When BlackRock purchases or sells securities for more than one account, the trades</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">allocate investments in a fair and equitable manner among client accounts, with no account</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">receiving preferential treatment. To this end, BlackRock has adopted a policy that is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">intended to ensure that investment opportunities are allocated fairly and equitably among</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">client accounts over time. This policy also seeks to achieve reasonable efficiency in client</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">transactions and provide BlackRock with sufficient flexibility to allocate investments in a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">manner that is consistent with the particular investment discipline and client base.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(3) As of August 31, 2009:</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager Compensation Overview</FONT></B><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s financial arrangements with its portfolio managers, its competitive</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation and its career path emphasis at all levels reflect the value senior management</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">places on key resources. Compensation may include a variety of components and may vary</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">from year to year based on a number of factors. The principal components of compensation</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">include a base salary, a performance-based discretionary bonus, participation in various</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">benefits programs and one or more of the incentive compensation programs established by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock such as its Long-Term Retention and Incentive Plan.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Base compensation. </FONT></B><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Generally, portfolio managers receive base compensation based on</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">their seniority and/or their position with the firm. Senior portfolio managers who perform</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">additional management functions within the portfolio management group or within</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock may receive additional compensation for serving in these other capacities.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Discretionary Incentive Compensation</FONT></B><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is a function of several components: the performance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of BlackRock, Inc., the performance of the portfolio manager&#146;s group within BlackRock,</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the investment performance, including risk-adjusted returns, of the firm&#146;s assets under</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">management or supervision by that portfolio manager relative to predetermined</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">benchmarks, and the individual&#146;s seniority, role within the portfolio management team,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">teamwork and contribution to the overall performance of these portfolios and BlackRock.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In most cases, including for the portfolio managers of the Fund, these benchmarks are the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">same as the benchmark or benchmarks against which the performance of the Fund or other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by the portfolio managers are measured. BlackRock&#146;s Chief Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officers determine the benchmarks against which the performance of funds and other</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accounts managed by each portfolio manager is compared and the period of time over which</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance is evaluated. With respect to the portfolio managers, such benchmarks for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Fund include a combination of market-based indices (e.g. Barclays Capital Municipal Bond</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Index), certain customized indices and certain fund industry peer groups.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s Chief Investment Officers make a subjective determination with respect to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">portfolio managers&#146; compensation based on the performance of the funds and other accounts</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">managed by each portfolio manager relative to the various benchmarks noted above.</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Performance is measured on both a pre-tax and after-tax basis over various time periods</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">including 1, 3, 5 and 10-year periods, as applicable.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Distribution of Discretionary Incentive Compensation</FONT></B><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Discretionary incentive compensation is distributed to portfolio managers in a combination</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">salary, represents more than 60% of total compensation for the portfolio managers. Paying</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">given year &#147;at risk&#148; based on BlackRock&#146;s ability to sustain and improve its performance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over future periods.</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Long-Term Retention and Incentive Plan (&#147;LTIP&#148;) &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">The LTIP is a
long-term</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">vested and subject to the attainment of certain performance goals, will be settled in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. common stock. Messrs. O&#146;Connor and Jaeckel have each received awards</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">under the LTIP.</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Deferred Compensation Program &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">A portion of the compensation paid to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">eligible BlackRock employees may be voluntarily deferred into an account that tracks the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">performance of certain of the firm&#146;s investment products. Each participant in the deferred</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation program is permitted to allocate his deferred amounts among the various</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">investment options. Messrs. O&#146;Connor and Jaeckel have each participated in the deferred</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation program.</FONT><BR>
<BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other compensation benefits. </FONT></B><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">In addition to base compensation and discretionary</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">incentive compensation, portfolio managers may be eligible to receive or participate in one</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">or more of the following:</FONT><BR>
<BR>
<I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Incentive Savings Plans &#151; </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock, Inc. has created a variety of incentive savings
plans</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">in which BlackRock employees are eligible to participate, including a 401(k) plan, the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Plan (ESPP). The employer contribution components of the RSP include a company match</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">equal to 50% of the first 6% of eligible pay contributed to the plan capped at &#36;4,000 per</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">year, and a company retirement contribution equal to 3-5% of eligible compensation. The</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">RSP offers a range of investment options, including registered investment companies</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">managed by the firm. BlackRock contributions follow the investment direction set by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">participants for their own contributions or, absent employee investment direction, are</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">invested into a balanced portfolio. The ESPP allows for investment in BlackRock common</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">stock at a 5% discount on the fair market value of the stock on the purchase date. Annual</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#36;25,000. Each portfolio manager is eligible to participate in these plans.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(a)(4) </FONT><I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">Beneficial Ownership of Securities </FONT></I><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#150; August 31, 2009</FONT><I><FONT size=2 face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif">.</FONT></I></P>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=41%></TD>
     <TD width=58%></TD></TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Portfolio Manager</FONT></B>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Dollar Range of Equity Securities</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Beneficially Owned</FONT></B>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Walter O&#146;Connor</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Theodore R. Jaeckel, Jr.</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Phillip Soccio</FONT>&nbsp;</TD>
	<TD align=left style="border-bottom:1px solid #000000;">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">None</FONT>&nbsp;</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 9 &#150; Purchases of Equity Securities by Closed-End Management Investment Company and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Affiliated Purchasers &#150; Not Applicable due to no such purchases during the period covered</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">by this report.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 10 &#150; Submission of Matters to a Vote of Security Holders &#150; The registrant&#146;s Nominating and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Governance Committee will consider nominees to the board of directors recommended by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders when a vacancy becomes available. Shareholders who wish to recommend a</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">nominee should send nominations that include biographical information and set forth the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">qualifications of the proposed nominee to the registrant&#146;s Secretary. There have been no</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material changes to these procedures.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 11 &#150; Controls and Procedures</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11(a) &#150; The registrant&#146;s principal executive and principal financial officers or persons performing</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">similar functions have concluded that the registrant&#146;s disclosure controls and procedures (as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;1940 Act&#148;)) are effective as of a date within 90 days of the filing of this report based on the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">11(b) &#150; There were no changes in the registrant&#146;s internal control over financial reporting (as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the period covered by this report that have materially affected, or are reasonably likely to</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">materially affect, the registrant&#146;s internal control over financial reporting.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Item 12 &#150; Exhibits attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(1) &#150; Code of Ethics &#150; See Item 2</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(2) &#150; Certifications &#150; Attached hereto</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(a)(3) &#150; Not Applicable</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">12(b) &#150; Certifications &#150; Attached hereto</FONT></P>

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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the undersigned, thereunto duly authorized.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940, this report has been signed below by the following persons on behalf</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the registrant and in the capacities and on the dates indicated.</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">By: </FONT><U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
<P align="left">
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT></P>

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<TYPE>EX-99.CERT
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   <TITLE>bhvex99cert.htm - Produced by Pellegrini and Associates, Inc.  |  134 Spring Street New York NY 10012  |  (212) 925-5151</TITLE>
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<P align="left"> <B><FONT size=2 face="Arial-BoldMT,Arial,Helvetica,sans-serif">EX-99.CERT</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Anne F. Ackerley, Chief Executive Officer (principal executive officer) of BlackRock Virginia Municipal Bond Trust,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">certify that:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1. I have reviewed this report on Form N-CSR of BlackRock Virginia Municipal Bond Trust;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">material fact necessary to make the statements made, in light of the circumstances under which such statements were made,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3. Based on my knowledge, the financial statements, and other financial information included in this report fairly</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">in this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">designed under our supervision, to ensure that material information relating to the registrant, including its</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">which this report is being prepared;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) designed such internal control over financial reporting, or caused such internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial reporting and the preparation of financial statements for external purposes in accordance with generally</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">accepted accounting principles;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">days prior to the filing date of this report, based on such evaluation; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">d) disclosed in this report any change in the registrant's internal control over financial reporting that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) all significant deficiencies and material weaknesses in the design or operation of internal control over</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process,</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">summarize, and report financial information; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) any fraud, whether or not material, that involves management or other employees who have a significant</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">role in the registrant's internal control over financial reporting.</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
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<P align="left"> <B><FONT size=2 face="Arial-BoldMT,Arial,Helvetica,sans-serif">EX-99.CERT</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Virginia Municipal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Bond Trust, certify that:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1. I have reviewed this report on Form N-CSR of BlackRock Virginia Municipal Bond Trust;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2. Based on my knowledge, this report does not contain any untrue statement of a material fact or</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">omit to state a material fact necessary to make the statements made, in light of the circumstances under</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">which such statements were made, not misleading with respect to the period covered by this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">3. Based on my knowledge, the financial statements, and other financial information included in this</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">report fairly present in all material respects the financial condition, results of operations, changes in net</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant as of, and for, the periods presented in this report;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940) for the registrant and have:</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) designed such disclosure controls and procedures, or caused such disclosure controls and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures to be designed under our supervision, to ensure that material information relating to the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">registrant, including its consolidated subsidiaries, is made known to us by others within those</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">entities, particularly during the period in which this report is being prepared;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) designed such internal control over financial reporting, or caused such internal control</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over financial reporting to be designed under our supervision, to provide reasonable assurance</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">regarding the reliability of financial reporting and the preparation of financial statements for</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">external purposes in accordance with generally accepted accounting principles;</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">c) evaluated the effectiveness of the registrant's disclosure controls and procedures and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">presented in this report our conclusions about the effectiveness of the disclosure controls and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures, as of a date within 90 days prior to the filing date of this report, based on such</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">evaluation; and</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">d) disclosed in this report any change in the registrant's internal control over financial</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">reporting that occurred during the second fiscal quarter of the period covered by this report that</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">has materially affected, or is reasonably likely to materially affect, the registrant's internal control</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">over financial reporting; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">audit committee of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">a) all significant deficiencies and material weaknesses in the design or operation of internal</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">control over financial reporting which are reasonably likely to adversely affect the registrant's</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">ability to record, process, summarize, and report financial information; and</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">b) any fraud, whether or not material, that involves management or other employees who</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">have a significant role in the registrant's internal control over financial reporting.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT></P>
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<P align="left"> <U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
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<DESCRIPTION>CERT
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<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit 99.1350CERT</FONT></P>
<P align="center"> <B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Certification Pursuant to Rule 30a-2(b) under the 1940 Act and</FONT></B><BR>
<B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Section 906 of the Sarbanes Oxley Act</FONT></B></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officer of BlackRock Virginia Municipal Bond Trust (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Registrant&#148;), hereby certifies, to the best of her knowledge, that the Registrant&#146;s Report on Form N-CSR for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">period ended August 31, 2009, (the &#147;Report&#148;) fully complies with the requirements of Section 13(a) of the Securities</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respects, the financial condition and results of operations of the Registrant.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Anne F. Ackerley</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Anne F. Ackerley</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Executive Officer (principal executive officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to 18 U.S.C. &#167; 1350, the undersigned officer of BlackRock Virginia Municipal Bond Trust (the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Registrant&#148;), hereby certifies, to the best of his knowledge, that the Registrant&#146;s Report on Form N-CSR for the</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">period ended August 31, 2009, (the &#147;Report&#148;) fully complies with the requirements of Section 13(a) of the Securities</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">respects, the financial condition and results of operations of the Registrant.</FONT><BR>
<BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: October 22, 2009</FONT><BR>
<BR>
<U><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">/s/ Neal J. Andrews</FONT></U></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Neal J. Andrews</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer (principal financial officer) of</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock Virginia Municipal Bond Trust</FONT></P>
<P align="left"> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exchange Commission</FONT><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">.</FONT></B></P>
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<TYPE>EX-99.PROXYPOL
<SEQUENCE>7
<FILENAME>blackrockproxyvotingpolicies.htm
<DESCRIPTION>PROXY POLICY
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<U><FONT size=7 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT></U><FONT size=7 face="TimesNewRomanPSMT,Times New Roman,Times,serif"> </FONT><BR>
<BR>
<FONT size=5 face="TimesNewRomanPSMT,Times New Roman,Times,serif">For The BlackRock-Advised Funds</FONT><BR>
<BR>
<FONT size=5 face="TimesNewRomanPSMT,Times New Roman,Times,serif">May 30, 2008</FONT></TD></TR></TABLE>
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 &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; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=4 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Table of Contents</FONT>&nbsp;
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&nbsp;
	</TD>
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&nbsp;
	</TD>
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&nbsp;	</TD>
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<U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page</FONT></U>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Introduction</FONT>&nbsp;
	</TD>
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT>&nbsp;
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT>&nbsp;
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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	<TD align=left width=74% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Boards of Directors</FONT>&nbsp;
	</TD>
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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	<TD align=left width=74% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Auditors</FONT>&nbsp;
	</TD>
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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	<TD align=left width=74% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Compensation and Benefits</FONT>&nbsp;
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Capital Structure</FONT>&nbsp;
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Corporate Charter and By-Laws</FONT>&nbsp;
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Corporate Meetings</FONT>&nbsp;
	</TD>
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&nbsp;	</TD>
	<TD align=right width=23% nowrap>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Companies</FONT>&nbsp;
	</TD>
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&nbsp;	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
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	<TD align=left width=74% nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Environmental and Social Issues</FONT>&nbsp;
	</TD>
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&nbsp;	</TD>
	<TD align=right width=23% nowrap>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3</FONT>&nbsp;
	</TD>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Reports to the Board</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD align=right width=23% nowrap>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4</FONT>&nbsp;
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<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Introduction</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Trustees/Directors (&#147;Directors&#148;) of the BlackRock-Advised Funds (the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;Funds&#148;) have the responsibility for voting proxies relating to portfolio securities of the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Funds, and have determined that it is in the best interests of the Funds and their </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders to delegate that responsibility to BlackRock Advisors, LLC and its affiliated </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">U.S. registered investment advisers (&#147;BlackRock&#148;), the investment adviser to the Funds,</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">as part of BlackRock&#146;s authority to manage, acquire and dispose of account assets. The </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Directors hereby direct BlackRock to vote such proxies in accordance with this Policy,</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">and any proxy voting guidelines that the Adviser determines are appropriate and in the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">best interests of the Funds&#146; shareholders and which are consistent with the principles </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">outlined in this Policy.  The Directors have authorized BlackRock to utilize an </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">unaffiliated third-party as its agent to vote portfolio proxies in accordance with this</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Policy and to maintain records of such portfolio proxy voting.</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">When BlackRock votes proxies for an advisory client that has delegated to </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock proxy voting authority, BlackRock acts as the client&#146;s agent. Under the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Advisers Act of 1940 (the &#147;Advisers Act&#148;), an investment adviser is a </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">fiduciary that owes each of its clients a duty of care and loyalty with respect to all </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">services the adviser undertakes on the client&#146;s behalf, including proxy voting. BlackRock</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">is therefore subject to a fiduciary duty to vote proxies in a manner BlackRock believes is </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">consistent with the client&#146;s best interests.</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"> When voting proxies for the Funds, </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s primary objective is to make voting decisions solely in the best interests of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Funds&#146; shareholders. In fulfilling its obligations to shareholders, BlackRock will seek </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">to act in a manner that it believes is most likely to enhance the economic value of the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">underlying securities held in client accounts.</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">It is imperative that BlackRock considers </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the interests of Fund shareholders, and not the interests of BlackRock, when voting </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies and that real (or perceived) material conflicts that may arise between </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock&#146;s interest and those of BlackRock&#146;s clients are properly addressed and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">resolved. </FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires, among </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">other things, that an investment adviser that exercises voting authority over clients&#146; proxy </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">voting adopt policies and procedures reasonably designed to ensure that the adviser votes </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies in the best interests of clients, discloses to its clients information about those </FONT><BR>
<BR>
<SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">1</FONT></SUP><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">     Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President, Ram Trust
Services </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">(February 12, 2002) (Section 206 of the Investment Advisers Act imposes a fiduciary responsibility to vote </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies fairly and in the best interests of clients); SEC Release No. IA-2106 (February 3, 2003).</FONT><BR>
<BR>
<FONT size=1 face="TimesNewRomanPSMT,Times New Roman,Times,serif">2 </FONT><FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Other considerations, such as social, labor, environmental or other policies, may be of interest to
</FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">particular clients. While BlackRock is cognizant of the importance of such considerations, when voting </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">proxies it will generally take such matters into account only to the extent that they have a direct bearing on </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the economic value of the underlying securities. To the extent that a BlackRock client, such as the Funds, </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">desires to pursue a particular social, labor, environmental or other agenda through the proxy votes made for </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">its securities held through BlackRock as investment adviser, BlackRock encourages the client to consider </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">retaining direct proxy voting authority or to appoint independently a special proxy voting fiduciary other </FONT><BR>
<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">than BlackRock.</FONT><BR>
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<FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">- 1 -</FONT></TD></TR></TABLE>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">policies and procedures and also discloses to clients how they may obtain information on </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">how the adviser has voted their proxies.</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock has adopted separate but substantially similar guidelines and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">procedures that are consistent with the principles of this Policy.  BlackRock&#146;s Equity </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Investment Policy Oversight Committee, or a sub-committee thereof (the &#147;Committee&#148;),</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">addresses proxy voting issues on behalf of BlackRock and its clients, including the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Funds. The Committee is comprised of senior members of BlackRock&#146;s Portfolio </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Management and Administration Groups and is advised by BlackRock&#146;s Legal and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Compliance Department.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Proxy Voting Policies</FONT></B><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">A. Boards of Directors</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals concern those issues submitted to shareholders relating to the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">composition of the board of directors of companies other than investment companies. As </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a general matter, the Funds believe that a company&#146;s board of directors (rather than </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shareholders) is most likely to have access to important, nonpublic information regarding </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a company&#146;s business and prospects, and is therefore best-positioned to set corporate </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">policy and oversee management. The Funds therefore believe that the foundation of good </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporate governance is the election of qualified, independent corporate directors who are </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">likely to diligently represent the interests of shareholders and oversee management of the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporation in a manner that will seek to maximize shareholder value over time. In </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">individual cases, consideration may be given to a director nominee&#146;s history of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">representing shareholder interests as a director of other companies, or other factors to the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">extent deemed relevant by the Committee.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">B. Auditors</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals concern those issues submitted to shareholders related to the </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">selection of auditors. As a general matter, the Funds believe that corporate auditors have </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a responsibility to represent the interests of shareholders and provide an independent </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">view on the propriety of financial reporting decisions of corporate management. While </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">the Funds anticipate that the Committee will generally defer to a corporation&#146;s choice of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">auditor, in individual cases, consideration may be given to an auditors&#146; history of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">representing shareholder interests as auditor of other companies, to the extent deemed </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">relevant.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">C. Compensation and Benefits</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals concern those issues submitted to shareholders related to </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">management compensation and employee benefits. As a general matter, the Funds favor </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">disclosure of a company&#146;s compensation and benefit policies and oppose excessive </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">compensation, but believe that compensation matters are normally best determined by a </FONT><BR>
<BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporation&#146;s board of directors, rather than shareholders. Proposals to &#147;micro-manage&#148; a </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">company&#146;s compensation practices or to set arbitrary restrictions on compensation or </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">benefits should therefore generally not be supported by the Committee.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">D. Capital Structure</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals relate to various requests, principally from management, for </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">approval of amendments that would alter the capital structure of a company, such as an </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">increase in authorized shares. As a general matter, the Funds expect that the Committee</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">will support requests that it believes enhance the rights of common shareholders and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">oppose requests that appear to be unreasonably dilutive. </FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">E. Corporate Charter and By-Laws</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals relate to various requests for approval of amendments to a </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">corporation&#146;s charter or by-laws, principally for the purpose of adopting or redeeming </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&#147;poison pills&#148;. As a general matter, the Funds expect that the Committee will oppose </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">poison pill provisions unless, after consultation with the portfolio managers, it is </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">determined that supporting the poison pill is in the best interest of shareholders.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">F. Corporate Meetings</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These are routine proposals relating to various requests regarding the formalities </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of corporate meetings. As a general matter, the Funds expect that the Committee will</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">support company management except where the proposals are substantially duplicative or </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">serve no legitimate business purpose.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">G. Investment Companies</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These proposals relate to proxy issues that are associated solely with holdings of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">shares of investment companies, including, but not limited to, investment companies for </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">which BlackRock provides investment advisory, administrative and/or other services. As </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">with other types of companies, the Funds believe that an investment company&#146;s board of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">directors (rather than its shareholders) is best-positioned to set fund policy and oversee </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">management. However, the Funds oppose granting boards of directors authority over </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">certain matters, such as changes to a fund&#146;s investment objective, that the Investment </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Company Act of 1940 envisions will be approved directly by shareholders.</FONT><BR>
<BR>
<B><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">H. Environmental and Social Issues</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">These are shareholder proposals to limit corporate conduct in some manner that </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">relates to the shareholder&#146;s environmental or social concerns. The Funds generally </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">believe that annual shareholder meetings are inappropriate forums for the discussion of </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">larger social issues, and oppose shareholder resolutions &#147;micro-managing&#148; corporate </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">conduct or requesting release of information that would not help a shareholder evaluate </FONT><BR>
<BR>
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<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">an investment in the corporation as an economic matter. While the Funds are generally </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">supportive of proposals to require corporate disclosure of matters that seem relevant and </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">material to the economic interests of shareholders, the Funds generally are not supportive </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of proposals to require disclosure of corporate matters for other purposes.</FONT><BR>
<BR>
<B><U><FONT size=4 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Reports to the Board</FONT></U></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BlackRock will report to the Directors on proxy votes it has made on behalf of the Funds </FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">at least annually.</FONT><BR>
<BR>
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