----

----

| Commission file number 001-13716                                |
|-----------------------------------------------------------------|
|                                                            |
|  ----------------------                                    |
|                                                            |
|    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)                                                                                                                                                                                                                                      |   |

| 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                   |

----

|   | Yes |   |   | No | x |   |
|--------|-----|--------|--------|----|---|--------|

|   | Yes |   |   | No | x |   |
|--------|-----|--------|--------|----|---|--------|

|   | Yes | x |   | No |   |   |
|--------|-----|---|--------|----|--------|--------|

|   | Yes |   x |   | No |   |   |
|--------|-----|----------|--------|----|--------|--------|

|   | Large accelerated filer  |   |   |   accelerated filer |   |   | non-accelerated filer | x |   |
|--------|-------------------------------|--------|--------|--------------------------|--------|--------|-----------------------|---|--------|

|   | Yes |   |   | No | x |   |
|--------|-----|--------|--------|----|---|--------|

|   | Yes |   |   | No |   |   |
|--------|-----|--------|--------|----|--------|--------|

----

----

| 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.                                                        |
|          |                                                         |
| 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 31, 2010:                                                                                                                                                                                                                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                      SERIES 2: 8 HOLDERS*;                                                                                                                                                                                                                                                |
|   |   |                      SERIES 3: 11 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.                                                                                  |
|           |                                                                                   |
| Item 9A.       | CONTROLS AND PROCEDURES.                                                               |
|           | NOT APPLICABLE                                                                         |

----

| Item 9B. | OTHER INFORMATION. |
|----------|--------------------|
|     | NONE.              |

| 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                                                                                  |

| 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, 2010 AND OCTOBER 1, 2010. |
|   |   | 99.4 | TRUSTEE'S CERTIFICATION                                                                                                                                                                       |

|   | (b)    | Reports on Form 8-K |
|--------|--------|---------------------|
|   |   | NONE.               |
|   |   |                |
|   | (c)    | Not Applicable      |
|   |   |                |
|   | (d)    | Not Applicable      |

----

|   | MERRILL LYNCH MUNICIPAL ABS, INC.                                         |
|--------|---------------------------------------------------------------------------|
|   |                                                                      |
|   | By:                                                                       | /s/ Edward J. Sisk |   |
|   |                                                                      |
|   | Name:       Edward J. Sisk             |
|   | Title:         President     |
|   | (senior officer in charge of securitization function of the Depositor)    |
|   | Date:         March 30, 2011 |

----

| 31.1 | Rule 14a-14 Certification                                                                                                                                                                      |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 99.1 | Independent 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, 2010 and October 1, 2010. |
| 99.4 | Trustee's Certification                                                                                                                                                                        |