SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

______

 

FORM 10-K

 

FOR ANNUAL AND TRANSITION REPORTS

PURSUANT TO SECTIONS 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

(MARK ONE)

 

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|---------------------------------------------------------------------------------------|

 

For the fiscal year ended December 26, 2008.

 

 

OR

 

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|-------------------------------------------------------------------------------------------|

 

For the transition period from ___________ to ___________

 

Commission file number 33-56254

 

MERRILL LYNCH MUNICIPAL ABS, INC.

(Exact Name of registrant as specified in charter)

 

| NEW YORK                                                      | 13-369-8229                       |
|---------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (IRS Employer Identification No.) |

 

| World Financial Center                            North Tower                            250 Vesey Street – 9th Flr.                            North Tower                            New York, New York | 10080-1323 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| (Address of principal executive offices)                                                                                                                                                                        | (Zip Code) |

 

Registrant's telephone number, including area code: (212) 449-9938

Securities registered pursuant to Section 12 (b) of the Act:

| TITLE OF EACH CLASS                                               | NAME OF EACH EXCHANGE ON WHICH REGISTERED |
|-------------------------------------------------------------------|-------------------------------------------|
| PREREFUNDED MUNICIPAL CERTIFICATES, SERIES 2, DUE OCTOBER 1, 2012 | NEW YORK STOCK EXCHANGE                   |
| PREREFUNDED MUNICIPAL CERTIFICATES, SERIES 3, DUE OCTOBER 1, 2012 | NEW YORK STOCK EXCHANGE                   |

 

Securities registered pursuant to Section 12 (g) of the Act: None

 

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes __ No   X   

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes __ No   X   

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of the Form 10-K or any amendment to this Form 10-K.

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (check one)

 

Large accelerated filer  ___    accelerated filer ____    non-accelerated filer   X     

Indicate by check mark whether the registrant is shell company (as defined in Rule 12b-2 of the Act).

 

Yes __ No   X   

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the pridce at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

 

ALL THE VOTING STOCK IS HELD BY AFFILIATES OF THE REGISTRANT.

 

(APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS)

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.   Yes [ ]  No  [ ]

 

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

 

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

 

AS OF DECEMBER 26, 2008, THERE ARE 100 SHARES OF COMMON STOCK.

 

DOCUMENTS INCORPORATED BY REFERENCE

 

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) any annual report to security-holders; (2) any proxy or information statement; and (3) any prospectus filed pursuant to Rule 424 (b) or (c) under the Securities Act of 1933. The listed documents should be clearly            described for identification purposes (e.g., annual report to security-holders for fiscal year ended December 24, 1980).

 

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PART I

 
| Item 1.           BUSINESS.                                            |
|--------------------------------------------------------------------------------------------------------------------------|
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                             |
|                                                                                                                     |
| Item 1A.       RISK FACTORS                                                           |
| NOT APPLICABLE                                                                                                           |
|                                                                                                                     |
| Item 1B.        UNRESOLVED STAFF COMMENTS                                        |
| NOT APPLICABLE                                                                                                           |
|                                                                                                                     |
| Item 2.           PROPERTIES.                                          |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                             |
|                                                                                                                     |
| Item 3.           LEGAL PROCEEDINGS.                                   |
| NONE.                                                                                                                    |
|                                                                                                                     |
| Item 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS. |
| NONE.                                                                                                                    |

PART II
| Item 5.           MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDERS                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.                                                                                                                                                                                            |
|                                                                                                                                                                                                                                          |
|                      (a)     Number of holders of record of each Series of Certificates as of December 26, 2008: |
| SERIES 2: 4 HOLDERS*;                                                                                                                                                                                                                         |
| SERIES 3: 6 HOLDERS*.                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                          |
|                      (b)     Principal market in which registrant's Certificates are being traded:               |
|                                                                                                                                                                                                                                          |
| SERIES 2.  NEW YORK STOCK EXCHANGE                                                                                                                                                                                                  |
| SERIES 3.  NEW YORK STOCK EXCHANGE                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                          |
|                       (c)     Report of Dividends:                                                          |
|                                                                                                                                                                                                                                          |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                                                                                                                                                  |
|                                                                                                                                                                                                                                          |
| Item 6.           SELECTED FINANCIAL DATA.                                                                                                                                                  |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                                                                                                                                                  |
|                                                                                                                                                                                                                                          |
| Item 7.          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION                                                                                                                     |
| AND RESULTS OF OPERATIONS.                                                                                                                                                                                                                    |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                                                                                                                                                  |
|                                                                                                                                                                                                                                          |
| Item 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.                                                                                                                                      |
| NONE                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                          |
| Item 8.           FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.                                                                                                                              |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                                                                                                                                                  |
|                                                                                                                                                                                                                                          |
| Item 9.           CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING                                                                                                               |
| AND FINANCIAL DISCLOSURE.                                                                                                                                                                                                                     |
| NONE.                                                                                                                                                                                                                                         |

* Number of Holders per Series equals the number of Direct Participants holding Certificates through The Depository Trust Company plus the number of accounts held at Merrill Lynch for the benefit of Certificateholders.

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| Item 9A        CONTROLS AND PROCEDURE.  |
|----------------------------------------------------------------------------|
| NOT APPLICABLE                                                             |
|                                                                       |
| Item 9B         OTHER INFORMATION. |
| NOT APPLICABLE                                                             |

 

PART III

 
| Item 10.         DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.           |
|-----------------------------------------------------------------------------------------------------------------------|
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                          |
|                                                                                                                  |
| Item 11.         EXECUTIVE COMPENSATION.                                           |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                          |
|                                                                                                                  |
| Item 12.         SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT    |
| AND RELATED STOCKHOLDER MATTERS.                                                                                      |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                          |
|                                                                                                                  |
| Item 13.         CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR |
| INDEPENDENCE.                                                                                                         |
| EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.                                                          |
|                                                                                                                  |
| Item 14.         PRINCIPAL ACCOUNTING FEES AND SERVICES.                           |
| NOT APPLICABLE                                                                                                        |

 

PART VI

 
| Item 15.      EXHIBITS, FINANCIAL STATEMENT SCHEDULES.                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (a) (1)   Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| NONE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (2)  Financial Statement Schedule                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| NONE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (3)  Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 31.1     RULE 13A-14 CERTIFICATION                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          99.1     INDEPENDANT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON                                    PROCEDURES                                                                                                                                                                                                                                                      |
| 99.2     NOTICE OF SUBSTITUTION OF DEFEASANCE OBLIGATIONS                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   99.3      STATEMENTS TO HOLDERS OF MERRILL LYNCH MUNICIPAL ABS, INC.

               PREREFUNDED MUNICIPAL CERTIFICATES, SERIES 2 AND SERIES 3

               RELATING TO THE DISTRIBUTION DATES OF APRIL 1, 2008 AND OCTOBER 1,

               2008. |
| 99.4     TRUSTEE’S CERTIFICATION                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (b) Reports on Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   NONE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (c) Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (d) Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

 

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SIGNATURES

 

Pursuant to the requirements of the Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MERRILL LYNCH MUNICIPAL ABS, INC.

 

|   | By: | /s/ Edward J. Sisk   |
|--------|-----|--------------------------------|

|   | Name: | Edward J. Sisk |
|--------|-------|----------------|

|   | Title: | Authorized Signatory |
|--------|--------|----------------------|

 

 

Date:  March 19, 2009

 

 

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EXHIBIT INDEX

 

| EXHIBIT                                                                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1 Rule 14a-14 Certification                                                                                                                                                                      |
| 99.1 Independant Accountants' Report on Applying Agreed-Upon Procedures                                                                                                                             |
| 99.2 Notice of Substitution of Defeasance Obligations                                                                                                                                               |
| 99.3 Statements to holders of Merrill Lynch Municipal ABS, Inc. Prerefunded Municipal Certificates, Series 2 and Series 3, relating to the Distribution Dates of April 1, 2008 and October 1, 2008. |
| 99.4 Trustee’s Certification                                                                                                                                                                  |

 

 

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