----

| 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 of                            | (IRS Employer Identification No.) |
| incorporation or organization)                             |   |
|                                                       |   |
| 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 |
|                                                       | ----------------------- |

| 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                   |

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

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

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

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

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

----

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| 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.  | MINE SAFETY DISCLOSURES.                                     |
|     | 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 30, 2011: |
|--------|-----|-------------------------------------------------------------------------------------|

|   | SERIES 2:  3 HOLDERS*; |
|--------|----------------------------------|
|   | SERIES 3:  3 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, 2011 AND OCTOBER 1, 2011. |
|   | 99.4 | TRUSTEE’S CERTIFICATION                                                                                                                                                                 |

|   | (b) |   | The following reports on Form 8-K were filed during the period covered by this report and are hereby incorporated by reference: |
|--------|-----|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Trustee’s Distribution Statement for the April 1, 2011 Distribution Date filed on Form 8-K on April 13, 2011.     |
|--------|----|-------------------------------------------------------------------------------------------------------------------------|
|   | 2. | Trustee’s Distribution Statement for the October 1, 2011 Distribution Date filed on Form 8-K on October 12, 2011. |
|   | 3. | Trustee's Distribution Statement for the April 1, 2011 Distribution Date filed on Form 8-K/A on March 30, 2012.         |

|   | (c) |   | Not Applicable |
|--------|-----|--------|----------------|

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|   | MERRILL LYNCH MUNICIPAL ABS, INC. |
|--------|-----------------------------------|

|   | By: |     /s/ James Nacos          |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | Name:                                                                  |   James Nacos         |
|--------|------------------------------------------------------------------------|----------------------------|
|   | Title:                                                                 |   President      |
|   | (senior officer in charge of securitization function of the Depositor) |
|   | Date:                                                                  |   March 30, 2012 |

----

| EXHIBIT                                                                                                                                                                                                                    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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, 2011 and October 1, 2011. |
| 99.4    Trustee’s Certification                                                                                                                                                                  |