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 March 30, 2004.
                          ---------------

                   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 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      (Zip Code)
offices)

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

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


<PAGE>

TITLE OF EACH CLASS                   NAME OF EACH EXCHANGE ON WHICH REGISTERED
-------------------                   -----------------------------------------

PREREFUNDED MUNICIPAL CERTIFICATES,   NEW YORK STOCK EXCHANGE
SERIES 2, DUE OCTOBER 1, 2012
PREREFUNDED MUNICIPAL CERTIFICATES,   NEW YORK STOCK EXCHANGE
SERIES 3, DUE OCTOBER 1, 2012

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


--------------------------------------------------------------------------------
                                (Title of class)


--------------------------------------------------------------------------------
                                (Title of class)



<PAGE>


     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 an  accelerated  filer (as
defined in Rule 12b-2 of the Act). Yes [ ] No [X]

     State the aggregate market value of the voting stock held by non-affiliates
of the registrant.  The aggregate market value shall be computed by reference to
the price at which the stock was sold,  or the average  bid and asked  prices of
such stock,  as of a specified  date within 60 days prior to the date of filing.
(See definition of affiliate in Rule 405).

     NOTE. If a determination as to whether a particular  person or entity is an
     affiliate cannot be made without involving unreasonable effort and expense,
     the aggregate market value of the common stock held by  non-affiliates  may
     be  calculated   on  the  basis  of   assumptions   reasonable   under  the
     circumstances, provided that the assumptions are set forth in this form.

          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 MARCH 30, 2004, 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).



<PAGE>


                                     PART I

Item 1.   BUSINESS.
          EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

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 AND RELATED STOCKHOLDERS
          MATTERS.

          (a)  Number of holders of record of each Series of  Certificates as of
               March 30, 2004:
                      SERIES 1: 24 HOLDERS*;
                      SERIES 2: 33 HOLDERS*;
                      SERIES 3: 35 HOLDERS*.

          (b)  Principal  market in which  registrant's  Certificates  are being
               traded:
                      SERIES 1.    OVER THE COUNTER
                      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.



<PAGE>


                                    PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
         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.
         EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
         EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 14. CONTROLS AND PROCEDURES
         NONE

                                     PART IV

Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

          (a) (1) Financial Statements
                  NONE

              (2) Financial Statement Schedule
                  NONE

              (3) Exhibits

                    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  1,
                         SERIES 2, SERIES 3 RELATING TO THE  DISTRIBUTION  DATES
                         OF APRIL 1, 1996, AS AMENDED AND OCTOBER 1, 1996.

                    99.4 OFFICER'S CERTIFICATION

                    99.5 TRUSTEE'S CERTIFICATION

           (b) Reports on Form 8-K
               NONE.

           (c) Not Applicable

           (d) Not Applicable



<PAGE>


                                   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:    December 22, 2004



<PAGE>


                                  EXHIBIT INDEX

EXHIBIT

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 1,  Series  2,  Series 3  relating  to the
     Distribution Dates of April 1, 2003, as amended, and October 1, 2003.

99.4 Officer's Certification

99.5 Trustee's Certification





<PAGE>


                                  Exhibit 99.1

                                  [LETTERHEAD]

                        Report of Independent Accountants


               Merrill Lynch Municipal ABS, Inc. (as Depositor)
               c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated
               World Financial Center
               North Tower, 9th Floor
               250 Vesey Street
               New York, New York 10080

               Deutsche Bank Trust Company Americas (as Trustee)
               60 Wall Street
               New York, New York  10005

               Re:    Prerefunded Municipal Certificates Series 1,
                      Series 2 and Series 3 (the "Certificates")



               Ladies and Gentlemen:

               We have examined  management's  assertions that the Depositor and
               the Trustee have  complied,  in all material  respects,  with the
               provisions of the Trust  Agreement dated as of March 28, 1995, as
               supplemented by the Prerefunded Municipal  Certificates Series 1,
               Series 2 and  Series 3  Supplement,  dated as of March  21,  1995
               (together, the "Trust Agreement"),  during the periods covered by
               the annual  report on Form 10-K filed by the  Depositor on behalf
               of the  Trust for the year  ended  March  31,  2004 (the  "Annual
               Report"). Management is responsible for compliance with the Trust
               Agreement.  Our  responsibility  is  to  express  an  opinion  on
               management's assertions based on our examination.

               Our examination was made in accordance with standards established
               by the American  Institute of Certified  Public  Accountants and,
               accordingly,  included examining, on a test basis, evidence about
               the  Depositor's  and the  Trustee's  compliance  with the  Trust
               Agreement  and  performing  such other  procedures  as considered
               necessary in the  circumstances.  We believe that our examination
               provides a reasonable basis for our opinion.

               In our opinion,  the Depositor and the Trustee have complied,  in
               all material respects, with the Trust Agreement during the period
               covered by the Annual  Report and  management's  assertions  with
               respect to such  compliance  are fairly  stated,  in all material
               respects, for the year ended March 31, 2004.



               /s/ Aston Bell, CPA
               New York, New York
               December 15, 2004



<PAGE>


                                  EXHIBIT 99.2

On September 28, 2003,  Deutsche Bank Trust Company Bank (Tel:  (212) 454-4226),
the escrow trustee for the prerefunded bonds underlying  Merrill Lynch Municipal
ABS, Inc. Prerefunded Municipal  Certificates,  Series 1, Series 2 and Series 3,
upon inquiry by the  registrant,  reported  that no  substitution  of defeasance
obligations  in the  escrow  for  each of the  related  maturity  of  bonds  has
occurred.


<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, 2003, AS
                          AMENDED AND OCTOBER 1, 2003.



<PAGE>





                                                            [LOGO] Deutsche Bank


Safet Kalabovic
Bankers Trust Company
(201) 593-6850

March 28, 2003

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

All:

Pursuant  to Section  4.03 of the Trust  Agreement  dated as of March 28,  1995,
Deutsche Bank Trust Company Americas,  as Trustee for the above-referenced  bond
issues,  hereby notifies you of the debt service payments for each Series due on
April 1, 2003. Attached is a payment schedule for each Series.

If you have any questions, please feel free to call me at (212) 454-4226.

Very truly yours,



Safer Kalabovic
Vice President



<PAGE>






                              [LOGO] Deutsche Bank

March 28, 2003

Jan Nelson
Merrill Lynch
World Financial Center
250 Vesey Street
New York, New York 10281



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

Jan:

For the above referenced issues, the principal and interest information for
April 1, 2003 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 issue                    Attached


Should you have any questions please call me at (212) 454-4226.

Sincerely,


Safet Kalabovic
Vice President


<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>
    16    04/01/2003   021433 EL7     5.10         100,000.00        2,550.00    100,000.00
--------------------------------------------------------------------------------------------
    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      48,407.00    Residual -->      3,209.00
--------------------------------------------------------------------------------------------
  TOTAL                                         $5,183,407.00     $140,916.25   $103,209.00
--------------------------------------------------------------------------------------------
</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>




                              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>
    16     04/01/2003   70252B BE2      5.10          265,000.00        6,757.50     265,000.00
------------------------------------------------------------------------------------------------
    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       55,745.00    Residual -->          31.00
------------------------------------------------------------------------------------------------
   TOTAL                                          $12,765,745.00     $347,250.00    $265,031.00
------------------------------------------------------------------------------------------------
</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 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>
    16    04/01/2003  684503 TS4    5.10       1,100,000.00        28,050.00   1,100,000.00
--------------------------------------------------------------------------------------------
    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      52,153.00     Residual -->        2,833.00
--------------------------------------------------------------------------------------------
  TOTAL                                      $54,937,153.00    $1,496,901.25  $1,102,833.00
--------------------------------------------------------------------------------------------
</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 Facilities
     13.125%, 10/01/12, $41,650,000



<PAGE>





                                                            [LOGO] Deutsche Bank


Safet Kalabovic
Bankers Trust Company
(201) 593-6850

September 29, 2003

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

All:

Pursuant  to Section  4.03 of the Trust  Agreement  dated as of March 28,  1995,
Deutsche Bank Trust Company Americas,  as Trustee for the above-referenced  bond
issues,  hereby notifies you of the debt service payments for each Series due on
October 1, 2003. Attached is a payment schedule for each Series.

If you have any questions, please feel free to call me at (212) 250-2679.

Very truly yours,



Safer Kalabovic
Vice President



<PAGE>






                                                            [LOGO] Deutsche Bank

September 29, 2003

Jan Nelson
Merrill Lynch
World Financial Center
250 Vesey Street
New York, New York 10281



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

Jan:

For the above referenced issues, the principal and interest information for
October 1, 2003 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 issue                    Attached


Should you have any questions please call me at (212) 250-2679.

Sincerely,


Safet Kalabovic
Vice President


<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>
    17    10/01/2003   021433 EM5     5.10        320,000.00        8,160.00    320,000.00
-------------------------------------------------------------------------------------------
    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     45,198.00    Residual -->        759.00
-------------------------------------------------------------------------------------------
  TOTAL                                        $5,080,198.00     $138,366.25   $320,759.00
-------------------------------------------------------------------------------------------
</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>




                              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>
    17     10/01/2003   70252B BF9      5.10           860,000.00       21,930.00     860,000.00
-------------------------------------------------------------------------------------------------
    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        55,714.00   Residual -->        1,789.00
-------------------------------------------------------------------------------------------------
   TOTAL                                           $12,500,714.00     $340,492.50    $861,789.00
-------------------------------------------------------------------------------------------------
</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 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>
    17    10/01/2003  684503 TT2    5.10        3,425,000.00        87,337.50   3,425,000.00
---------------------------------------------------------------------------------------------
    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       49,320.00   Residual -->           883.00
---------------------------------------------------------------------------------------------
  TOTAL                                       $53,834,320.00    $1,468,851.25  $3,425,883.00
---------------------------------------------------------------------------------------------
</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 Facilities
     13.125%, 10/01/12, $41,650,000



<PAGE>


                                  Exhibit 99.4


I, Edward J. Sisk, certify that:

1. I have  reviewed  this  annual  report on Form 10-K  filed by  Merrill  Lynch
Municipal ABS, Inc., on behalf of Merrill Lynch Municipal ABS, Inc.  Prerefunded
Municipal Certificates, Series 1, Series 2, Series 3;

2. Based on my knowledge,  the  information in these reports,  taken as a whole,
does not  contain  any untrue  statement  of a material  fact or omit to state a
material  fact  necessary  to  make  the  statements   made,  in  light  of  the
circumstances  under which such  statements  were made, not misleading as of the
last day of the period covered by this annual report;

3. Based on my knowledge,  the distribution or servicing information required to
be provided to the depositor by the trustee under the pooling and servicing,  or
similar, agreement, for inclusion in these reports is included in these reports;
and

4. I am responsible for reviewing the activities  performed by the depositor and
the trustee  under the pooling and  servicing,  or similar,  agreement and based
upon  my  knowledge  and  the  annual  compliance  review  required  under  that
agreement,  and except as disclosed in the reports,  the  depositor  and trustee
have each fulfilled its obligations under that agreement.

5. The reports disclose all significant  deficiencies relating to the compliance
by the trustee and the depositor with the minimum servicing or similar standards
based  upon the report  provided  by an  independent  public  accountant,  after
conducting a review in compliance  with the Uniform Single  Attestation  Program
for  Mortgage  Bankers or similar  procedure,  as set forth in the  pooling  and
servicing, or similar, agreement, that is included in these reports.

In giving the  certifications  above,  I have  reasonably  relied on information
provided  to me by the  following  unaffiliated  parties:  Deutsche  Bank  Trust
Company Americas.


                       By /s/ Edward J. Sisk
                        --------------------------------
                       Name: Edward J. Sisk
                       Title: Assistant Vice President
                       Date: December 20, 2004


<PAGE>


                                  Exhibit 99.5


The  undersigned,  being an officer of Deutsche Bank Trust Company Americas , as
trustee (the  "Trustee"),  with respect to Prerefunded  Municipal  Certificates,
Series 1, Series 2, Series 3, on whose behalf  Merrill Lynch  Municipal ABS Inc.
has prepared this annual report on Form 10-K for the fiscal year ended March 30,
2004 (the "Annual Report"), certifies as follows:

1. The Trustee is the trustee under the trust agreement.

2. Based on my  knowledge,  for the periods  included in the year covered by the
Annual  Report,  the  Trustee  has  fulfilled  its  obligations,  including  any
servicing obligations, under the trust agreement.


                        /s/     Scott Thiel
                        --------------------------------
                        Name:   Scott Thiel
                        Title:  Vice President
                        Date:   March 30, 2004