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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 COMMISSION FILE NO.: 1-7182-08
 MERRILL LYNCH PREFERRED CAPITAL TRUST IV
  Delaware
    
    13-7139562(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)4 World Financial CenterNew York, New York
    
    10080(Address of principal executive offices)
    
    (Zip Code)
  COMMISSION FILE NO.: 1-7182-07
 MERRILL LYNCH PREFERRED FUNDING IV, L.P.
  Delaware
    
    13-3982446(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)4 World Financial CenterNew York, New York
    
    10080(Address of principal executive offices)
    
    (Zip Code)
  þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
    
    Smaller reporting company o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONItem 1A. Risk FactorsITEM 6. EXHIBITSSIGNATURESINDEX TO EXHIBITSExhibit 12Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 FINANCIAL STATEMENTS
 
 September 30, 2010
    
    
    December 31, 2009ASSETSInvestment in affiliate partnership preferred securities
    
    $
    412,372
    
    
    $
    412,372Total Assets
    
    $
    412,372
    
    
    $
    412,372STOCKHOLDERS EQUITYPreferred securities (7.12% Trust Originated Preferred
Securities; 16,000,000 authorized, issued, and
outstanding; $25 liquidation amount per security)
    
    $
    400,000
    
    
    $
    400,000Common securities (7.12% Trust Common Securities;
494,880 authorized, issued, and outstanding;
$25 liquidation amount per security)
    
    
    12,372
    
    
    
    12,372Total Stockholders Equity
    
    $
    412,372
    
    
    $
    412,372
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FOR THE THREE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest on affiliate partnership preferred securities
    
    $
    7,341
    
    
    $
    7,341
 FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest on affiliate partnership preferred securities
    
    $
    22,021
    
    
    $
    22,021
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009PREFERRED SECURITIESBalance, beginning and end of period
    
    $
    400,000
    
    
    $
    400,000COMMON SECURITIESBalance, beginning and end of period
    
    
    12,372
    
    
    
    12,372UNDISTRIBUTED EARNINGSBalance, beginning of period
    
    
    
    
    
    
    Earnings
    
    
    22,021
    
    
    
    22,021Distributions
    
    
    (22,021
    )
    
    
    (22,021
    )Balance, end of period
    
    
    
    
    
    
    Total Stockholders Equity
    
    $
    412,372
    
    
    $
    412,372
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009CASH FLOWS FROM OPERATING ACTIVITIES:Earnings
    
    $
    22,021
    
    
    $
    22,021Cash provided by operating activities
    
    
    22,021
    
    
    
    22,021CASH FLOWS FROM FINANCING ACTIVITIES:Distributions
    
    
    (22,021
    )
    
    
    (22,021
    )Cash used for financing activities
    
    
    (22,021
    )
    
    
    (22,021
    )NET CHANGE IN CASH
    
    
    
    
    
    
    CASH, BEGINNING OF PERIOD
    
    
    
    
    
    
    CASH, END OF PERIOD
    
    $
    
    
    
    $
    
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September 30, 2010
    
    
    December 31, 2009ASSETSInvestments:Affiliate debentures
    
    $
    480,292
    
    
    $
    480,292U.S. Government and agencies
    
    
    4,852
    
    
    
    4,856Total investments
    
    
    485,144
    
    
    
    485,148Total Assets
    
    $
    485,144
    
    
    $
    485,148PARTNERS CAPITALLimited partnership interest
    
    $
    412,372
    
    
    $
    412,372General partnership interest
    
    
    72,772
    
    
    
    72,776Total Partners Capital
    
    $
    485,144
    
    
    $
    485,148
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FOR THE THREE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest income:Affiliate debentures
    
    $
    8,550
    
    
    $
    8,550U.S. Government and
agencies
    
    
    1
    
    
    
    2Earnings
    
    $
    8,551
    
    
    $
    8,552
 FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009EARNINGSInterest income:Affiliate debentures
    
    $
    25,648
    
    
    $
    25,648U.S. Government and
agencies
    
    
    6
    
    
    
    13Earnings
    
    $
    25,654
    
    
    $
    25,661
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009LIMITED PARTNERS CAPITALBalance, beginning of period
    
    $
    412,372
    
    
    $
    412,372Earnings allocated to
limited partner
    
    
    22,021
    
    
    
    22,021Distributions
    
    
    (22,021
    )
    
    
    (22,021
    )Balance, end of period
    
    
    412,372
    
    
    
    412,372GENERAL PARTNERS CAPITALBalance, beginning of
period
    
    
    72,776
    
    
    
    72,774Earnings allocated to
general partner
    
    
    3,633
    
    
    
    3,640Distributions
    
    
    (3,637
    )
    
    
    (3,641
    )Balance, end of period
    
    
    72,772
    
    
    
    72,773TOTAL PARTNERS CAPITAL
    
    $
    485,144
    
    
    $
    485,145
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FOR THE NINE MONTHS ENDEDSeptember 30, 2010
    
    
    September 30, 2009CASH FLOWS FROM OPERATING ACTIVITIES:Earnings
    
    $
    25,654
    
    
    $
    25,661Accretion of interest on securities issued by
U.S. Government and agencies
    
    
    (6
    )
    
    
    (13
    )Cash provided by operating activities
    
    
    25,648
    
    
    
    25,648CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of investment securities
    
    
    (9,704
    )
    
    
    (9,704
    )Maturities of investment securities
    
    
    9,714
    
    
    
    9,718Cash provided by investing activities
    
    
    10
    
    
    
    14CASH FLOWS FROM FINANCING ACTIVITIES:Distributions to limited partner
    
    
    (22,021
    )
    
    
    (22,021
    )Distributions to general partner
    
    
    (3,637
    )
    
    
    (3,641
    )Cash used for financing activities
    
    
    (25,658
    )
    
    
    (25,662
    )NET CHANGE IN CASH
    
    
    
    
    
    
    CASH, BEGINNING OF PERIOD
    
    
    
    
    
    
    CASH, END OF PERIOD
    
    $
    
    
    
    $
    
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12




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12
    
    
    Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Securities Distributions.31.1
    
    
    Rule 13a  14(a) Certification.31.2
    
    
    Rule 13a  14(a) Certification.32.1
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  13




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MERRILL LYNCH PREFERRED CAPITAL TRUST IV*By:
    /s/ MARLENE DEBELName:
    Marlene DebelTitle:
    Regular TrusteeMERRILL LYNCH PREFERRED FUNDING IV, L.P.*By:
    MERRILL LYNCH & CO., INC., as General PartnerBy:
    /s/ PETER D. TAUBEName:
    Peter D. TaubeTitle:
    Chief Accounting Officer and Controller
Merrill Lynch & Co., Inc.  *
    
    There is no principal executive officer(s), principal financial officer,
controller, principal accounting officer or board of directors of the
Registrants. The Trustees of the Trust (which include the Regular Trustees, the
Property Trustee and the Delaware Trustee) together exercise all powers and
perform all functions with respect to the Trust.  14




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12*
    
    
    Computation of Ratios of Earnings to Combined Fixed Charges and
Preferred Securities Distributions.31.1*
    
    
    Rule 13a  14(a) Certification.31.2*
    
    
    Rule 13a  14(a) Certification.32.1*
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    Included herewith  15