Independent
Accountants Report The Board of Directors
       The Bank of
New York: We have  examined  the  compliance
 of The Bank of New  York  (the  Company)  with the  PPLUS  Minimum  Servicing
Standards  (see  attached)  for the  PreferredPLUS  Trust  Series VER-1  transaction  as
of and for the year ended December 31, 2007.  With respect to servicing  standard 4, 5
and 7, there were no activities  performed  during the year ended  December 31, 2007 with
respect to the  PreferredPLUS  Trust Series VER-1  transaction,  because  there were no
 occurrences  of events  that  would  require  the  Company  to  perform  such
 activities.  Management  is responsible  for the Companys  compliance  with those
 servicing  criteria.  Our  responsibility  is to express an opinion on the Companys
compliance based on our examination. Our  examination was made in
accordance with standards  established by the American  Institute of Certified  Public
Accountants and,  accordingly,  included examining,  on a test basis,  evidence about the
Companys compliance with the Minimum  Servicing  Standards  specified above and
performing such other procedures as we considered  necessary in the  circumstances.  We
 believe  that our  examination  provides  a  reasonable  basis for our  opinion.  Our
examination  does not provide a legal  determination on the Companys  compliance with
the PPLUS minimum  servicing standards. Our examination  disclosed the
following  material  noncompliance with the PPLUS minimum servicing standard 3 as of and
for the year ended December 31, 2007. With respect to the December trust  distribution
 date, the  disbursement was not made on the trust distribution date of December 3, 2007
but instead was made on December 5, 2007. In our opinion,  except for the
material  noncompliance  disclosed above, the Company has complied, in all material
respects, with the aforementioned Minimum Servicing Standards as of and for the year
ended December 31, 2007. /s/ KPMG LLP Chicago, Illinois
       March 5, 2008    MANAGEMENT ASSERTION March 5, 2008 We, as members of  management  of
The Bank of New York (the  Company)  are  responsible  for  complying  with the
requirements  of the PPLUS  Minimum  Servicing  Standards as they relate to the
  PreferredPLUS  Trust Series VER-1 transaction.  With respect to servicing  standard 4,
5 and 7, there were no  activities  performed  during the year ended  December 31, 2007
with respect to the  PreferredPLUS  Trust Series VER-1  transaction,  because there were
no occurrences  of events that would  require the Company to perform  such  activities.
 We also are  responsible  for establishing  and  maintaining  effective  internal
 control  over  compliance  with the  PPLUS  Minimum  Servicing Standards.  We have
 performed  an  evaluation  of the  Companys  compliance  with the  requirements  of the
PPLUS Minimum  Servicing  Standards  as it relates to   PreferredPLUS   Trust  Series
 VER-1 as of and for the year ended December 31, 2007. As of and for the year ended
 December 31, 2007,  the Company,  other than as identified  below, has complied in all
material respects with the PPLUS Minimum Servicing Standards (attached). Instances of Material
Noncompliance PPLUS  standard 3  With respect to
the December trust  distribution  date,  the  disbursement  was not made on the trust
distribution date of December 3, 2007 but instead was made on December 5, 2007. Controls have been put in place and
procedures are currently being  reinforced so that  distributions  are remitted to the
holders within the applicable  time frames in accordance with the transaction  documents.
 In addition,  the debt service system has been enhanced to help prevent a future
occurrence. /s/ Joseph PanepintoThe Bank of New YorkJoseph PanepintoVice President/s/ Robert L. GriffinThe Bank of New YorkRobert L. GriffinManaging Director




1.
    
    CUSTODIAL BANK ACCOUNT RECONCILIATIONS
 
    
    The Bank must reconcile all related custodial bank accounts.
    
    The Bank will include the Distribution report as Exhibit 99.1 in the Form
8-Ks filed with the SEC.
 2.
    
    VERIFICATION OF INCOMING TRUST COLLATERAL INTEREST PAYMENTS
 
    
    The Bank must have a tickler system in place so that they will be
expecting and monitoring the custodial bank account for receipt of the
collateral coupon interest. Each of the tickler systems shall be updated
on an on-going basis as each new trust series is created.
    
    The Bank will ensure all interest payments are deposited into the
custodial bank accounts and related bank clearing accounts on the day the
Bank is in receipt of the funds.
    
    The Bank must prove the arithmetic accuracy of the amount of interest
received by the Trust from the underlying securities and ensure that the
face amount, description, coupon rate, and maturity date of the securities
held in the Trust agree to the PPM Supplement dated Date XX, 20XX.
 3.
    
    TRUST DISBURSEMENTS
 
    
    The Bank must prove the arithmetic accuracy of the amount of interest to
be paid by the Trust to the Debt Unit holders by referring to the PPM
Supplement dated Date XX, 20XX.
    
    The Bank will make all disbursements via wire transfer to The Depository
Trust Company (DTC) on the scheduled trust distribution date as soon as
the amount of interest received from the underlying collateral into the
custodial bank account has been received and verified for accuracy.




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4.
    
    PARTIAL REDEMPTIONS
 
    
    If there is a partial redemption of the trust certificates the Bank and
the Depositor must ensure that the redemption proceeds received by the
trust and distributed by the Bank are in accordance with the series
supplement.
 5.
    
    DEFAULTS
 
    
    If the Bank has actual knowledge of an event of default on the underlying
securities that did not cause the trust to liquidate, the Bank must
distribute a formal notice of default to the Depositor, the
certificateholders, the rating agencies and HGCM/ISS.
    
    If the Bank has actual knowledge of an event of default on the underlying
securities that did not cause the Trust to liquidate, the procedures for a
vote or consent of the certificateholders as set forth in the Standard
Terms and series Supplement must be complied with.
 6.
    
    CALL WARRANT EXERCISES AND OPTIONAL EXCHANGES
 
    
    If there is an exercise of call warrants or an optional exchange of trust
certificates for underlying securities that did not cause the trust to
liquidate, the Bank must give the Depositor and the affected
certificateholders notice of any exercise of call warrants or optional
exchange. Such notice must contain the amount of certificates to be
purchased, the call price, and any other relevant information.
    
    If there is an exercise of call warrants or an optional exchange of trust
certificates for underlying securities that did not cause the trust to
liquidate, the Bank must notify the rating agencies of the call exercise
or optional exchange.
    
    If there is an exercise of call warrants or an optional exchange of trust
certificates for underlying securities that did not cause the trust to
liquidate, the Bank must give notice of exercise or optional exchange to
the Depositor and certificate registrar of any certificates that were
called.
 7.
    
    COMMUNICATIONS WITH CERTIFICATEHOLDERS
 
    
    If there was any occasion for the exercise of voting rights or giving
consents by the certificateholders, the Bank must provide notice to the
certificateholders within 5 business days of the Trusts receipt of notice
of the occasion and the Bank must vote or give consents as directed by
certificateholders.


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