<PAGE>

                                                                    EXHIBIT 99.3

           STATEMENTS TO HOLDERS OF MERRILL LYNCH MUNICIPAL ABS, INC.
       PREREFUNDED MUNICIPAL CERTIFICATES, SERIES 1, SERIES 2 AND SERIES 3
              RELATING TO THE DISTRIBUTION DATES OF APRIL 1, 1999,
                        AS AMENDED AND OCTOBER 1, 1999.



<PAGE>


                                                                   [LETTERHEAD]



March 27, 2000


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

The Depository Trust Company
55 Water Street
New York, NY 10004
Attn: Fran Vespa

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 on April 3,
2000. Attached is a payment schedule for each Series.

If you have any questions, please feel free to call me at the above
referenced number.

Very truly yours,


/s/ Safet Kalabovic
--------------------------
Safet Kalabovic
Assistant Treasurer


<PAGE>

                                       MAIN
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                              SERIES 1 CERTIFICATES
-----------------------------------------------------------------------------------------------
           Certificate                                                 Interest        Principal
Class       Maturity       CUSIP       Certificate    Certificate       Amount           Amount
Number        Date         Number         Rate          Amount           Due              Due
------     -----------     ------      -----------    -----------      --------       ---------
<S>        <C>           <C>           <C>          <C>              <C>             <C>
10         04/01/2000    021433 EE3      5.00           95,000.00       2,375.00      95,000.00
11         10/01/2000    021433 EF0      5.00           95,000.00       2,375.00           0.00
12         04/01/2001    021433 EG8      5.00          100,000.00       2,500.00           0.00
13         10/01/2001    021433 EH6      5.00          100,000.00       2,500.00           0.00
14         04/01/2002    021433 EI2      5.10          105,000.00       2,677.50           0.00
15         10/01/2002    021433 EK9      5.10          295,000.00       7,522.50           0.00
16         04/01/2003    021433 EL7      5.10          100,000.00       2,550.00           0.00
17         10/01/2003    021433 EM5      5.10          320,000.00       8,160.00           0.00
18         04/01/2004    021433 EN3      5.20           95,000.00       2,470.00           0.00
19         10/01/2004    021433 EP8      5.20          340,000.00       8,840.00           0.00
20         04/01/2005    021433 EQ6      5.25           95,000.00       2,493.75           0.00
21         10/01/2005    021433 ER4      5.25          360,000.00       9,450.00           0.00
22         10/01/2008    021433 EX1      5.50        1,495,000.00      41,112.50           0.00
23         10/01/2010    021433 FB8      5.60        1,130,000.00      31,640.00           0.00
24         10/01/2012    021433 FF9      5.70        1,200,000.00      34,200.00           0.00
RI         10/01/2012    021433 FG7    Variable         59,322.00      Residual-->       727.00
-----------------------------------------------------------------------------------------------

TOTAL                                               $5,984,322.00    $160,866.25     $95,727.00
-----------------------------------------------------------------------------------------------
</TABLE>
---------------
**** PLEASE NOTE THAT PREMIUM ON BONDS, TRUSTEE FEES PAYABLE, INTEREST
SHORTFALLS, AGGREGATE SHORTFALLS, ACCRUED INTEREST UNDISTRIBUTED, AND ACCRUED
PRINCIPAL UNDISTRIBUTED ARE AT ZERO.

**** UNDERLYING BOND-ALTAMONTE SPRINGS FLA AUTHORITY
     13.125% 10/01/12, $3,910,000
-------------------------------------------------------------------------------


                                    Page 1

<PAGE>



                                                   MAIN


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                          SERIES 2 CERTIFICATES
-------------------------------------------------------------------------------------------------------------
          Certificate                                                          Interest          Principal
Class      Maturity        CUSIP       Certificate         Certificate          Amount             Amount
Number      Date           Number          Rate               Amount             Due                Due
------    -----------      ------      -----------         -----------         --------          ---------
<S>      <C>             <C>             <C>           <C>                   <C>                <C>

10       04/01/2000      70252B AY9        5.00            245,000.00           6,125.00         245,000.00
11       10/01/2000      70252B AZ6        5.00            250,000.00           6,250.00               0.00
12       04/01/2001      70252B BA0        5.00            255,000.00           6,375.00               0.00
13       10/01/2001      70252B BB8        5.00            265,000.00           6,625.00               0.00
14       04/01/2002      70252B BC6        5.10            270,000.00           6,885.00               0.00
15       10/01/2002      70252B BD4        5.10            795,000.00          20,272.50               0.00
16       04/01/2003      70252B BE2        5.10            265,000.00           6,757.50               0.00
17       10/01/2003      70252B BF9        5.10            860,000.00          21,930.00               0.00
18       04/01/2004      70252B BG7        5.20            250,000.00           6,500.00               0.00
19       10/01/2004      70252B BH5        5.20            925,000.00          24,050.00               0.00
20       04/01/2005      70252B BJ1        5.25            240,000.00           6,300.00               0.00
21       10/01/2005      70252B BK8        5.25          1,000,000.00          26,250.00               0.00
22       10/01/2007      70252B BP7        5.40          2,255,000.00 *        60,885.00               0.00
23       10/01/2010      70252B BV4        5.60          5,000,000.00 *       140,000.00               0.00
24       10/01/2012      70252B BZ5        5.70          1,915,000.00 *        54,577.50               0.00
RI       10/01/2012      70252B CA9      Variable           70,374.00          Residual-->         1,624.00
-------------------------------------------------------------------------------------------------------------

TOTAL                                                  $14,860,374.00        $399,782.50        $246,624.00
-------------------------------------------------------------------------------------------------------------

</TABLE>
---------------
**** PLEASE NOTE THAT PREMIUM ON BONDS, TRUSTEE FEES PAYABLE, INTEREST,
SHORTFALLS, AGGREGATE SHORTFALLS, ACCRUED INTEREST UNDISTRIBUTED, AND
ACCRUED PRINCIPAL UNDISTRIBUTED ARE AT ZERO.

**** PASCO COUNTY FLA HEALTH FACILITES
     13.125%, 10/01/12, $9,850,000
-------------------------------------------------------------------------------


                                     Page 1

<PAGE>



                                                   MAIN


<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                           SERIES 3 CERTIFICATES
------------------------------------------------------------------------------------------------------------
          Certificate                                                          Interest         Principal
Class      Maturity        CUSIP       Certificate         Certificate          Amount           Amount
Number      Date           Number          Rate               Amount             Due              Due
------    -----------      ------      -----------         -----------         --------         ---------
<S>      <C>             <C>             <C>             <C>               <C>                <C>
10       04/01/2000      684503 TL9        5.00            1,020,000.00        25,500.00       1,020,000.00
11       10/01/2000      684503 TM7        5.00            1,045,000.00        26,125.00               0.00
12       04/01/2001      684503 TN5        5.00            1,070,000.00        26,750.00               0.00
13       10/01/2001      684503 TP0        5.00            1,095,000.00        27,375.00               0.00
14       04/01/2002      684503 TQ8        5.10            1,125,000.00        28,687.50               0.00
15       10/01/2002      684503 TR6        5.10            3,190,000.00        81,345.00               0.00
16       04/01/2003      684503 TS4        5.10            1,100,000.00        28,050.00               0.00
17       10/01/2003      684503 TT2        5.10            3,425,000.00        87,337.50               0.00
18       04/01/2004      684503 TU9        5.20            1,065,000.00        27,690.00               0.00
19       10/01/2004      684503 TV7        5.20            3,675,000.00        95,550.00               0.00
20       10/01/2005      684503 TX3        5.25            4,975,000.00 *     130,593.75               0.00
21       10/01/2006      684503 TZ8        5.30            5,225,000.00 *     138,462.50               0.00
22       10/01/2007      684503 UB9        5.40            5,480,000.00 *     147,960.00               0.00
23       10/01/2008      684503 UD5        5.50            5,785,000.00 *     159,087.50               0.00
24       10/01/2009      684503 UF0        5.60            6,085,000.00 *     170,380.00               0.00
25       10/01/2010      684503 UH6        5.60            6,410,000.00 *     179,480.00               0.00
26       10/01/2011      684503 UK9        5.70            6,750,000.00 *     192,375.00               0.00
27       10/01/2012      684503 UM5        5.70            4,910,000.00 *     139,935.00               0.00
RI       10/01/2012      684503 UN3      Variable             61,428.00        Residual-->           598.00
------------------------------------------------------------------------------------------------------------

TOTAL                                                    $63,491,428.00    $1,712,683.75      $1,020,598.00
------------------------------------------------------------------------------------------------------------
</TABLE>
---------------
**** PLEASE NOTE THAT PREMIUM ON BONDS, TRUSTEE FEES PAYABLE, INTEREST,
SHORTFALLS, AGGREGATE SHORTFALLS, ACCRUED INTEREST UNDISTRIBUTED, AND
ACCRUED PRINCIPAL UNDISTRIBUTED ARE AT ZERO.

**** UNDERLYING BOND-ORANGE COUNTY FLA HEALTH FACILITES
       13.125%, 10/01/12, $41,650,000


                                    Page 1
<PAGE>


                             [LETTERHEAD]


September 29, 1999


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

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

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 on October 1,
1999. Attached is a payment schedule for each Series.

If you have any questions, please feel free to call me at the above
referenced number.

Very truly yours,


/s/ Safet Kalabovic
--------------------------
Safet Kalabovic

Attachment

<PAGE>


                                  [LETTERHEAD]


September 29, 1999


Carl Daniels
Merrill Lynch


RE: MERRILL LYNCH MUNICIPAL ABS, INC.
    PREREFUNDED MUNICIPAL CERTIFICATES SERIES 1, 2, AND 3


Carl:

For the above referenced issues, the principal and interest information for
October 1, 1999 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) 250-6125.

Thank You,

/s/ Safet Kalabovic
--------------------------

enc.

<PAGE>

                                    OCT 98

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                 SERIES 1 CERTIFICATES
-------------------------------------------------------------------------------------------------------
         Certificate                                                   Interest        Principal
Class     Maturity       CUSIP        Certificate    Certificate       Amount           Amount
Number      Date         Number          Rate          Amount            Due              Due
------   -----------    ----------     -----------    ------------    -----------      ---------
<S>     <C>            <C>            <C>            <C>              <C>              <C>
 9       10/01/1999     021433 ED5       4.90            90,000.00       2,205.00       90,000.00
10       04/01/2000     021433 EE3       5.00            95,000.00       2,375.00            0.00
11       10/01/2000     021433 EF0       5.00            95,000.00       2,375.00            0.00
12       04/01/2001     021433 EG8       5.00           100,000.00       2,500.00            0.00
13       10/01/2001     021433 EH6       5.00           100,000.00       2,500.00            0.00
14       04/01/2002     021433 EJ2       5.10           105,000.00       2,677.50            0.00
15       10/01/2002     021433 EK9       5.10           295,000.00       7,522.50            0.00
16       04/01/2003     021433 EL7       5.10           100,000.00       2,550.00            0.00
17       10/01/2003     021433 EM5       5.10           320,000.00       8,160.00            0.00
18       04/01/2004     021433 EN3       5.20            95,000.00       2,470.00            0.00
19       10/01/2004     021433 EP8       5.20           340,000.00       8,840.00            0.00
20       04/01/2005     021433 EQ6       5.25            95,000.00       2,493.75            0.00
21       10/01/2005     021433 ER4       5.25           360,000.00       9,450.00            0.00
22       10/01/2008     021433 EX1       5.50         1,495,000.00      41,112.50            0.00
23       10/01/2010     021433 FB8       5.60         1,130,000.00      31,640.00            0.00
24       10/01/2012     021433 FF9       5.70         1,200,000.00      34,200.00            0.00
R1       10/01/2012     021433 FG7     Variable          62,844.00      Residual-->      3,522.00
-------------------------------------------------------------------------------------------------------

TOTAL                                                $6,077,844.00    $163,071.25      $93,522.00
-------------------------------------------------------------------------------------------------------
</TABLE>
---------------
**** PLEASE NOTE THAT PREMIUM ON BONDS, TRUSTEE FEES PAYABLE, INTEREST
SHORTFALLS, AGGREGATE SHORTFALLS, ACCRUED INTEREST UNDISTRIBUTED, AND ACCRUED
PRINCIPAL UNDISTRIBUTED ARE AT ZERO.

**** UNDERLYING BOND-ALTAMONTE SPRINGS FLA AUTHORITY
     13.125% 10/01/12, $3,910,000



                                    Page 1
<PAGE>



                                                  APR982


<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                        SERIES 2 CERTIFICATES
---------------------------------------------------------------------------------------------------------------
          Certificate                                                          Interest          Principal
Class      Maturity        CUSIP       Certificate         Certificate          Amount             Amount
Number       Date          Number          Rate               Amount             Due                Due
------    -----------      ------      -----------         -----------         --------          ---------
<S>      <C>             <C>             <C>           <C>                   <C>                <C>

9        10/01/1999      70252B AX1        4.90            240,000.00           5,880.00         240,000.00
10       04/01/2000      70252B AY9        5.00            245,000.00           6,150.00               0.00
11       10/01/2000      70252B AZ6        5.00            250,000.00           6,250.00               0.00
12       04/01/2001      70252B BA0        5.00            255,000.00           6,375.00               0.00
13       10/01/2001      70252B BB8        5.00            265,000.00           6,625.00               0.00
14       04/01/2002      70252B BC6        5.10            270,000.00           6,885.00               0.00
15       10/01/2002      70252B BD4        5.10            795,000.00          20,272.50               0.00
16       04/01/2003      70252B BE2        5.10            265,000.00           6,757.50               0.00
17       10/01/2003      70252B BF9        5.10            860,000.00          21,930.00               0.00
18       04/01/2004      70252B BG7        5.20            250,000.00           6,500.00               0.00
19       10/01/2004      70252B BH5        5.20            925,000.00          24,050.00               0.00
20       04/01/2005      70252B BI1        5.25            240,000.00           6,300.00               0.00
21       10/01/2005      70252B BK8        5.25          1,000,000.00          26,250.00               0.00
22       10/01/2007      70252B BP7        5.40          2,255,000.00          60,885.00               0.00
23       10/01/2010      70252B BV4        5.60          5,000,000.00         140,000.00               0.00
24       10/01/2012      70252B BZ5        5.70          1,915,000.00          54,577.50               0.00
RI       10/01/2012      70252B CA9      Variable           71,118.00          Residual-->           744.00
---------------------------------------------------------------------------------------------------------------

TOTAL                                                  $15,101,118.00        $405,662.50        $240,744.00
---------------------------------------------------------------------------------------------------------------
</TABLE>
------------
**** PLEASE NOTE THAT PREMIUM ON BONDS, TRUSTEE FEES PAYABLE, INTEREST
SHORTFALLS, AGGREGATE SHORTFALLS, ACCRUED INTEREST UNDISTRIBUTED, AND
ACCRUED PRINCIPAL UNDISTRIBUTED ARE AT ZERO.

**** PASCO COUNTY FLA HEALTH FACILITES
     13.125%, 10/01/12, $9,850,000


                                      Page 1
<PAGE>


                                                  OCT973


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                           SERIES 3 CERTIFICATES
-------------------------------------------------------------------------------------------------------------------
          Certificate                                                          Interest            Principal
Class      Maturity        CUSIP       Certificate         Certificate          Amount              Amount
Number       Date          Number          Rate               Amount             Due                 Due
------    -----------      ------      -----------         -----------         --------           ---------
<S>      <C>             <C>             <C>             <C>               <C>                  <C>
9        10/01/1999      684503 TK1        4.90              995,000.00        24,377.50         995,000.00
10       04/01/2000      684503 TL9        5.00            1,020,000.00        25,500.00               0.00
11       10/01/2000      684503 TM7        5.00            1,045,000.00        26,125.00               0.00
12       04/01/2001      684503 TN5        5.00            1,070,000.00        26,750.00               0.00
13       10/01/2001      684503 TP0        5.00            1,095,000.00        27,375.00               0.00
14       04/01/2002      684503 TQ8        5.10            1,125,000.00        28,687.00               0.00
15       10/01/2002      684503 TR6        5.10            3,190,000.00        81,345.00               0.00
16       04/01/2003      684503 TS4        5.10            1,100,000.00        28,050.00               0.00
17       10/01/2003      684503 TT2        5.10            3,425,000.00        87,337.50               0.00
18       04/01/2004      684503 TU9        5.20            1,065,000.00        27,690.00               0.00
19       10/01/2004      684503 TV7        5.20            3,675,000.00        95,550.00               0.00
20       10/01/2005      684503 TX3        5.25            4,975,000.00 *     130,593.75               0.00
21       10/01/2006      684503 TZ8        5.30            5,225,000.00 *     138,462.50               0.00
22       10/01/2007      684503 UB9        5.40            5,480,000.00 *     147,960.00               0.00
23       10/01/2008      684503 UD5        5.50            5,785,000.00 *     159,087.50               0.00
24       10/01/2009      684503 UF0        5.60            6,085,000.00 *     170,380.00               0.00
25       10/01/2010      684503 UH6        5.60            6,410,000.00 *     179,480.00               0.00
26       10/01/2011      684503 UK9        5.70            6,750,000.00 *     192,375.00               0.00
27       10/01/2012      684503 UM5        5.70            4,910,000.00 *     139,935.00               0.00
RI       10/01/2012      684503 UN3      Variable             62,648.00        Residual-->         1,220.00
-------------------------------------------------------------------------------------------------------------------

TOTAL                                                    $64,487,648.00    $1,737,061.25        $996,220.00
-------------------------------------------------------------------------------------------------------------------
</TABLE>
---------------
**** PLEASE NOTE THAT PREMIUM ON BONDS, TRUSTEE FEES PAYABLE, INTEREST
SHORTFALLS, AGGREGATE SHORTFALLS, ACCRUED INTEREST UNDISTRIBUTED, AND
ACCRUED PRINCIPAL UNDISTRIBUTED ARE AT ZERO.

**** UNDERLYING BOND-ORANGE COUNTY FLA HEALTH FACILITES
       13.125%, 10/01/12, $41,650,000


                                    Page 1