Exhibit 3

        Amended Statements to Holders of Merrill Lynch Municipal ABS, Inc.
       Prerefunded Municipal Certificates, Series 1, Series 2 and Series 3
              relating to the Distribution Date of October 1, 1995
<PAGE>

                     [Letterhead of Bankers Trust Company]

Kerstin Stanley
Merrill Lynch

Re:  Merrill Lynch Municipal ABS, Inc.
     Prerefunded Municipal Certificates Series 1, 2, and 3


Kerstin:

For the above referenced issues, the principal and interest information for the
October 1995 payment date is attached.  All other relevant information is as 
follows:

     Premium on Bonds                             None
     Trustee Fees Payable                         None
     Interest Shortfall on Bonds                  None
     Aggregate shortfall on Bonds                 None
     Accrued Interest undistributed to holders    None
     Accrued Principal undistributed to holders   None
     Underlying Bonds on issues                   Attached

Should you have any questions please call me at (212) 250-6378.


Thank You,

/s/ James A. Odorczuk

enc.

<PAGE>

                     [Letterhead of Bankers Trust Company]

October 2, 1995


Merrill Lynch 
World Financial Center
North Towers - 9th Floor
250 Vesey Street
New York, NY  10281-1309
Attn: Robert Sheybani

The Depository Trust Company
7 Hanover Square - 2nd Floor
New York, NY  10004
Attn: Shandon Chakaraburty

Re:  Merrill Lynch Municipal ABS, Inc.
     Prerefunded Municipal Certificates Series 1, 2, and 3

Gentlemen:

Pursuant to Section 4.03 of the Trust Agreement dated as of March 28, 1995,
Bankers Trust Company as Trustee for the above-referenced bond issues, hereby
notifies you of the debt service payments for each Series due October 1, 1995
(payable on October 2nd). Attached is a payment schedule for each Series.

If you have any questions, please feel free to call Barbara Kaczmar at (212)
250-6378 or myself directly.


Very truly yours,

/s/ Joanne Adamis


Joanne Adamis
Assistant Vice President

Attachment

<PAGE>

                              SERIES 1 CERTIFICATES
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
               Certificate                                                        Interest          Principal
   Class        Maturity           CUSIP       Certificate      Certificate        Amount            Amount
   Number         Date             Number          Rate           Amount             Due              Due
-------------------------------------------------------------------------------------------------------------
     <S>         <C>             <C>               <C>        <C>               <C>                <C>
     1           10/1/95         021433DV6         4.35           75,000.00        1,631.25         75,000.00
-------------------------------------------------------------------------------------------------------------
     2           4/1/96          021433DW4         4.65           75,000.00        1,743.75              0.00
-------------------------------------------------------------------------------------------------------------
     3           10/1/96         021433 DX2        4.65           80,000.00        1,860.00              0.00
-------------------------------------------------------------------------------------------------------------
     4           4/1/97          021433 DY0        4.70           80,000.00        1,880.00              0.00
-------------------------------------------------------------------------------------------------------------
     5           10/1/97         021433 DZ7        4.70           85,000.00        1,997.50              0.00
-------------------------------------------------------------------------------------------------------------
     6           4/1/98          O21433 EA1        4.80           85,000.00        2,040.00              0.00
-------------------------------------------------------------------------------------------------------------
     7           10/1/98         021433 EB9        4.80           85,000.00        2,040.00              0.00
-------------------------------------------------------------------------------------------------------------
     8           4/1/99          021433 EC7        4.90           90,000.00        2,205.00              0.00
-------------------------------------------------------------------------------------------------------------
     9           10/1/99         021433 ED5        4.90           90,000.00        2,205.00              0.00
-------------------------------------------------------------------------------------------------------------
     10          4/1/00          021433 EE3        5.00           95,000.00        2,375.00              0.00
-------------------------------------------------------------------------------------------------------------
     11          10/1/00         021433 EF0        5.00           95,000.00        2,375.00              0.00
-------------------------------------------------------------------------------------------------------------
     12          4/1/01          021433 EG8        5.00          100,000.00        2,500.00              0.00
-------------------------------------------------------------------------------------------------------------
     13          10/1/01         021433 EH6        5.00          100,000.00        2,500.00              0.00
-------------------------------------------------------------------------------------------------------------
     14          4/1/02          021433 EJ2        5.10          105,000.00        2,677.50              0.00
-------------------------------------------------------------------------------------------------------------
     15          10/1/02         021433 EK9        5.10          295,000.00        7,522.50              0.00
-------------------------------------------------------------------------------------------------------------
     16          4/1/03          021433 EL7        5.10          100,000.00        2,550.00              0.00
-------------------------------------------------------------------------------------------------------------
     17          10/1/03         021433 EM5        5.10          320,000.00        8,160.00              0.00
-------------------------------------------------------------------------------------------------------------
     18          4/1/04          021433 EN3        5.20           95,000.00        2,470.00              0.00
-------------------------------------------------------------------------------------------------------------
     19          10/1/04         021433 EP8        5.20          340,000.00        8,840.00              0.00
-------------------------------------------------------------------------------------------------------------
     20          4/1/05          021433 EQ6        5.25           95,000.00        2,493.75              0.00
-------------------------------------------------------------------------------------------------------------
     21          10/1/05         021433 ER4        5.25          360,000.00        9,450.00              0.00
-------------------------------------------------------------------------------------------------------------
     22          10/1/08         021433 EX1        5.50        1,495,000.00*      41,112.50              0.00
-------------------------------------------------------------------------------------------------------------
     23          10/1/10         021433 FB8        5.60        1,130,000.00*      31,640.00              0.00
-------------------------------------------------------------------------------------------------------------
     24          10/1/12         021433 FF9        5.70        1,200,000.00*      34,200.00              0.00
-------------------------------------------------------------------------------------------------------------
     RI          10/1/12         021433 FG7        Variable       80,682.00    Residual -->            151.00
-------------------------------------------------------------------------------------------------------------

   TOTAL                                                      $6,750,682.00     $178,468.75        $75,151.00
-------------------------------------------------------------------------------------------------------------
</TABLE>

**** Information as of 9/30/95
**** Underlying Bond-Altamonte Springs FLA Authority
     13.125% 10/01/12, $3,910,000

<PAGE>

                              SERIES 2 CERTIFICATES

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
               Certificate                                                        Interest          Principal
   Class        Maturity           CUSIP       Certificate      Certificate        Amount            Amount
   Number         Date             Number          Rate           Amount             Due              Due
--------------------------------------------------------------------------------------------------------------
     <S>         <C>             <C>               <C>        <C>               <C>                <C>
     1           10/1/95         70252BAP8         4.35           190,000.00       4,132.50            190,000
--------------------------------------------------------------------------------------------------------------
     2           4/1/96          70252BAQ6         4.65           200,000.00       4,650.00               0.00
--------------------------------------------------------------------------------------------------------------
     3           10/1/96         70252B AR4        4.65           205,000.00       4,766.25               0.00
--------------------------------------------------------------------------------------------------------------
     4           4/1/97          70252B AS2        4.70           210,000.00       4,935.00               0.00
--------------------------------------------------------------------------------------------------------------
     5           10/1/97         70252B AT0        4.70           215,000.00       5,052.50               0.00
--------------------------------------------------------------------------------------------------------------
     6           4/1/98          70252B AU7        4.80           220,000.00       5,280.00               0.00
--------------------------------------------------------------------------------------------------------------
     7           10/1/98         70252B AV5        4.80           225,000.00       5,400.00               0.00
--------------------------------------------------------------------------------------------------------------
     8           4/1/99          70252B AW3        4.90           230,000.00       5,635.00               0.00
--------------------------------------------------------------------------------------------------------------
     9           10/1/99         70252B AX1        4.90           240,000.00       5,880.00               0.00
--------------------------------------------------------------------------------------------------------------
     10          4/1/00          70252B AY9        5.00           245,000.00       6,125.00               0.00
--------------------------------------------------------------------------------------------------------------
     11          10/1/00         70252B AZ6        5.00           250,000.00       6,250.00               0.00
--------------------------------------------------------------------------------------------------------------
     12          4/1/01          70252B BA0        5.00           255,000.00       6,375.00               0.00
--------------------------------------------------------------------------------------------------------------
     13          10/1/01         70252B BB8        5.00           265,000.00       6,625.00               0.00
--------------------------------------------------------------------------------------------------------------
     14          4/1/02          70252B BC6        5.10           270,000.00       6,885.00               0.00
--------------------------------------------------------------------------------------------------------------
     15          10/1/02         70252B BD4        5.10           795,000.00      20,272.50               0.00
--------------------------------------------------------------------------------------------------------------
     16          4/1/03          70252B BE2        5.10           265,000.00       6,757.50               0.00
--------------------------------------------------------------------------------------------------------------
     17          10/1/03         70252B BF9        5.10           860,000.00      21,930.00               0.00
--------------------------------------------------------------------------------------------------------------
     18          4/1/04          70252B BG7        5.20           250,000.00       6,500.00               0.00
--------------------------------------------------------------------------------------------------------------
     19          10/1/04         70252B BH5        5.20           925,000.00      24,050.00               0.00
--------------------------------------------------------------------------------------------------------------
     20          4/1/05          70252B BJ1        5.25           240,000.00       6,300.00               0.00
--------------------------------------------------------------------------------------------------------------
     21          10/1/05         70252B BK8        5.25         1,000,000.00      26,250.00               0.00
--------------------------------------------------------------------------------------------------------------
     22          10/1/08         70252B BP7        5.40         2,255,000.00      60,885.00               0.00
--------------------------------------------------------------------------------------------------------------
     23          10/1/10         70252B BV4        5.60         5,000,000.00     140,000.00               0.00
--------------------------------------------------------------------------------------------------------------
     24          10/1/12         70252B BZ5        5.70         1,915,000.00      54,577.50               0.00
--------------------------------------------------------------------------------------------------------------
     RI          10/1/12         70252B CA9        Variable       107,349.00  Residual -->            3,467.00
--------------------------------------------------------------------------------------------------------------
                
    TOTAL                                                     $16,832,349.00    $445,513.75        $193,467.00
--------------------------------------------------------------------------------------------------------------
</TABLE>
**** INFORMATION AS OF 9/30/95
**** Pasco County FLA Health Facilities
     13.125% 10/01/12, $9,850,000

<PAGE>

                              SERIES 3 CERTIFICATES

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
               Certificate                                                        Interest          Principal
   Class        Maturity           CUSIP       Certificate      Certificate        Amount            Amount
   Number         Date             Number          Rate           Amount             Due              Due
--------------------------------------------------------------------------------------------------------------
     <S>         <C>             <C>               <C>        <C>               <C>                <C>
     1           10/1/95         684503TB1         4.35           795,000.00        17,291.25          795,000
--------------------------------------------------------------------------------------------------------------
     2           4/1/96          684503TC9         4.65           845,000.00        19,646.25             0.00
--------------------------------------------------------------------------------------------------------------
     3           10/1/96         684503 TD7        4.65           865,000.00        20,111.25             0.00
--------------------------------------------------------------------------------------------------------------
     4           4/1/97          684503 TE5        4.70           885,000.00        20,797.50             0.00
--------------------------------------------------------------------------------------------------------------
     5           10/1/97         684503 TF2        4.70           905,000.00        21,267.50             0.00
--------------------------------------------------------------------------------------------------------------
     6           4/1/98          684503 TGO        4.80           925,000.00        22,200.00             0.00
--------------------------------------------------------------------------------------------------------------
     7           10/1/98         684503 TH8        4.80           945,000.00        22,680.00             0.00
--------------------------------------------------------------------------------------------------------------
     8           4/1/99          684503TJ4         4.90           970,000.00        23,765.00             0.00
--------------------------------------------------------------------------------------------------------------
     9           10/1/99         684503 TK1        4.90           995,000.00        24,377.50             0.00
--------------------------------------------------------------------------------------------------------------
     10          4/1/00          684503 TL9        5.00         1,020,000.00        25,500.00             0.00
--------------------------------------------------------------------------------------------------------------
     11          10/1/00         684503 TM7        5.00         1,045,000.00        26,125.00             0.00
--------------------------------------------------------------------------------------------------------------
     12          4/1/01          684503 TN5        5.00         1,070,000.00        26,750.00             0.00
--------------------------------------------------------------------------------------------------------------
     13          10/1/01         684503 TP0        5.00         1,095,000.00        27,375.00             0.00
--------------------------------------------------------------------------------------------------------------
     14          4/1/02          684503 TQ8        5.10         1,125,000.00        28,687.50             0.00
--------------------------------------------------------------------------------------------------------------
     15          10/1/02         684503 TR6        5.10         3,190,000.00        81,345.00             0.00
--------------------------------------------------------------------------------------------------------------
     16          4/1/03          684503 TS4        5.10         1,100,000.00        28,050.00             0.00
--------------------------------------------------------------------------------------------------------------
     17          10/1/03         684503 TT2        5.10         3,425,000.00        87,337.50             0.00
--------------------------------------------------------------------------------------------------------------
     18          4/1/04          684503 TU9        5.20         1,065,000.00        27,690.00             0.00
--------------------------------------------------------------------------------------------------------------
     19          10/1/04         684503 TV7        5.20         3,675,000.00        95,550.00             0.00
--------------------------------------------------------------------------------------------------------------
     20          4/1/05          684503 TX3        5.25         4,975,000.00       130,593.75             0.00
--------------------------------------------------------------------------------------------------------------
     21          10/1/06         684503 TZ8        5.30         5,225,000.00       138,462.50             0.00
--------------------------------------------------------------------------------------------------------------
     22          10/1/07         684503 UB9        5.40         5,480,000.00       147,960.00             0.00
--------------------------------------------------------------------------------------------------------------
     23          10/1/08         684503 UD5        5.50         5,785,000.00       159,087.50             0.00
--------------------------------------------------------------------------------------------------------------
     24          10/1/09         684503 UF0        5.60         6,085,000.00       170,380.00             0.00
--------------------------------------------------------------------------------------------------------------
     25          10/1/10         684503 UH6        5.60         6,410,000.00       179,480.00             0.00
--------------------------------------------------------------------------------------------------------------
     26          10/1/11         684503 UK9        5.70         6,750,000.00       192,375.00             0.00
--------------------------------------------------------------------------------------------------------------
     27          10/1/12         684503 UM5        5.70         4,910,000.00       139,935.00             0.00
--------------------------------------------------------------------------------------------------------------
     RI          10/1/12         684503 UN3        Variable        77,137.00  Residual -->            1,714.00
--------------------------------------------------------------------------------------------------------------
               
    TOTAL                                                     $71,637,137.00    $1,904,820.00      $796,714.00
--------------------------------------------------------------------------------------------------------------
</TABLE>

**** Information as of 9/30/95
**** Underlying Bond-Orange County FLA Health Facilities
     13.125%, 10/01/12, $41,650,000