Edgar Filing: BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II

WORLD CLASS
INSTITUTIONAL
ASSET MANAGEMENT
AT A PERSONAL LEVEL

BLACKROCK
CLOSED-END FUNDS

-----------------------------------
ANNUAL REPORT
-----------------------------------

August 31, 2002

BLACKROCK MUNICIPAL BOND TRUST
BLACKROCK MUNICIPAL INCOME TRUST II
BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST
BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II
BLACKROCK FLORIDA MUNICIPAL BOND TRUST
BLACKROCK MARYLAND MUNICIPAL BOND TRUST
BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST
BLACKROCK NEW YORK MUNICIPAL BOND TRUST
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II
BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

NOT FDIC
INSURED

MAY LOSE VALUE
NO BANK GUARANTEE

[BLACKROCK LOGO]

TABLE OF CONTENTS

Letter to Shareholders ...................................................... 1
Portfolio Managers' Report .................................................. 2
Trust Summaries ............................................................. 6
Portfolios of Investments ................................................... 16
Financial Statements
Statements of Assets and Liabilities ..................................... 29
Statements of Operations ................................................. 31
Statements of Changes in Net Assets ...................................... 33
Financial Highlights ........................................................ 35
Notes to Financial Statements ............................................... 37
Independent Auditors' Report ................................................ 41
Dividend Reinvestment Plan .................................................. 42
Trustees Information ........................................................ 43
Investment Summaries ........................................................ 45
Additional Information ...................................................... 51
Glossary .................................................................... 51

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PRIVACY PRINCIPLES OF THE TRUSTS

The Trusts are committed to maintaining the privacy of shareholders and to
safeguarding their non-public personal information. The following information is
provided to help you understand what personal information the Trusts collect,
how we protect that information and why, in certain cases, we may share
information with select other parties.

Generally, the Trusts do not receive any non-public personal information
relating to their shareholders, although certain non-public personal information
of shareholders may become available to the Trusts. The Trusts do not disclose
any non-public personal information about their shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).

The Trusts restrict access to non-public personal information about their
shareholders to BlackRock employees with a legitimate business need for the
information. The Trusts maintain physical, electronic and procedural safeguards
designed to protect the non-public personal information of their shareholders.
--------------------------------------------------------------------------------

PORTFOLIO MANAGERS' REPORT

September 30, 2002

Dear Shareholder:

We are pleased to present the first audited annual report for the following
BlackRock closed-end municipal funds:

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PRIMARY
TRUST EXCHANGE
--------------------------------------------------------------

BLACKROCK MUNICIPAL BOND TRUST (BK) NYSE
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BLACKROCK MUNICIPAL INCOME TRUST II (BLE) AMEX
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BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST (BZA) NYSE
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BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II (BCL) AMEX
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BLACKROCK FLORIDA MUNICIPAL BOND TRUST (BIE) NYSE
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BLACKROCK MARYLAND MUNICIPAL BOND TRUST (BZM) AMEX
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BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST (BLJ) AMEX
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BLACKROCK NEW YORK MUNICIPAL BOND TRUST (BQH) NYSE
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BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II (BFY) AMEX
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BLACKROCK VIRGINIA MUNICIPAL BOND TRUST (BHV) AMEX
--------------------------------------------------------------

The annual report reviews the Trusts' stock prices and net asset value
(NAV) performance, summarizes developments in the fixed income markets and
discusses recent portfolio management activity for the period ended August 31,
2002.

THE FIXED INCOME MARKETS

The fixed income markets have generally performed well over the past year,
as the LEHMAN BROTHERS U.S. AGGREGATE INDEX (a broad measure of the bond market)
returned 8.11% for the 12-month period ended August 31, 2002 with 6.82% of the
total return coming during 2002. Uncertainty and volatility remain the primary
themes in the U.S. markets, as the underlying economic data does not point
convincingly towards either a sustainable recovery or a "double-dip"
contraction. Concerns over corporate governance and accounting scandals as well
as a declining U.S. dollar continue to weigh on consumer confidence and the
equity markets. Consumer confidence, which remained strong from February through
May of 2002, has fallen off and finished the period ended August 31, 2002 on a
noticeable downtrend. GDP growth experienced positive results over the first
quarter, growing at 5.0%, but rose less-than-expected during the second quarter
at 1.1%. Upbeat economic data was seen in industrial production, which has
advanced for the seventh consecutive month (+0.2%), new home sales, which
continue to surprise on the upside (+6.7%) and durable goods orders have
rebounded nicely from June's decline (+8.7% in July after a decline of -4.5% in
June). While the Federal Reserve (the "Fed") maintains that current monetary
policy, "should be sufficient to foster an improving business climate over
time," it recognized that risks are, in fact, weighed towards weakness and moved
to an easing bias at the August 13, 2002 meeting. However, a benign inflationary
environment combined with signs of optimism from recent economic reports could
keep the Fed from lowering rates in the near-term.

Treasuries continued to rally in August, but lagged most alternative fixed
income investments. The rally was led by the 10-year bond, which temporarily
traded below a 4% yield for the first time in nearly 40 years. Throughout 2002
the short-end of the yield curve also significantly rallied as investors sought
a safe haven for their investments. Presently, expectations for a near term rate
movement have diminished, and with 2-year yields only slightly above the Fed
Funds August 31, 2002 target rate at 2.13% investors have begun to look further
out on the yield curve for enhanced return and more attractive yields. As a
result of this increased demand for Treasuries with longer maturities, the yield
curve has flattened approximately 25 basis points (0.25%) from 2 to 30-years
since the end of July.

The municipal market was one of the strongest performing domestic fixed
income sectors during the first half of 2002. Fueling the demand for municipals
were both retail and institutional customers' desire for high income with lower
credit volatility assets. Yields in the municipal market dropped across the
curve with the largest moves coming in the short to intermediate maturities.
Two-year yields dropped 41 basis points while 5, 10 and 30-year yields dropped
by 49, 43, and 9 basis points, respectively, during the period. By the beginning
of April the market place had priced in as much as 175 basis points of
tightening by the Fed as evidence that a stronger economy was beginning to
emerge. As additional corporate credit scandals became known, namely WorldCom
and Adelphia, the equity markets and the economy began to stumble. Similar to
the Treasury market, by June the municipal yield curve aggressively priced out a
significant amount of Fed easing that had been built in during the first
quarter. A remarkable aspect of the strong performance in the second quarter by
the municipal market was that it occurred during a period of record bond
issuance. Through the end of the second quarter, $162 billion of municipal bonds
were issued setting a record for issuance during any six-month period. Most
expectations are for 2002 to be the largest issuance year ever with between $300
and $320 billion priced (the previous record is $292 billion in 1993).

Starting mid-July through August, as the equity markets suffered under
increasing concerns about corporate accounting, retail demand for municipal
securities accelerated during what is typically a quiet period. This strong
demand allowed municipals to perform well versus most domestic fixed income
alternatives, but they were unable to match the impressive performance of U.S.
Treasuries, which are considered a safe haven by both domestic and international
investors in times of uncertainty. Supply in the municipal market continues to
be robust as the combination of low interest rates, which allows municipalities
to refinance their outstanding higher cost debt much as a homeowner refinances a
mortgage, and increased budgetary needs have combined to keep the issuance on
pace for a record setting year. From June 30, 2002 through August 30, 2002,
yields on 2, 5, 10 and 30-year maturities declined an additional 38, 41, 35, and
25 basis points, respectively.

CALIFORNIA

California is the nation's most populous state with nearly 34 million
residents spread over its 163,707 square miles. This massive population supports
the world's 6th largest economy producing a $1.3 trillion annual economic
output. The state's vast economy turned sluggish in January 2001, but
California's job growth resumed in December 2001. Through July 2002 California
has added over 40,000 jobs. However, the unemployment rate is still rising. July
2002's jobless rate was 6.3%, lower than June's peak (6.5%) but significantly
higher than July 2001's 5.3%, indicating that even more people are seeking
employment.

California's General Fund revenues increased 48% between 1997-2001 while
spending grew at a slower 41% during the same time frame; this spread enabled
the state to accumulate a $7 billion surplus in FY2001. More recently, lower
revenue receipts reflect a slower economy and the state ended FY2002 with
revenues approximately 1% less than projected in the May budget revision. The
state's structural imbalance will grow as revenues decline, and the 2003 budget
had to close a gap in excess of $23 billion. This was done with revenue
enhancements and expenditure cuts. Finally in September, two months into the new
fiscal year, the budget was passed and signed by the Governor. The state's
General Fund is under additional stress due to the $6.2 billion loan to the
Department of Water Resources in 2001 to pay for power purchases. The state had
expected to be reimbursed in FY 2002 through a bond sale that remains stalled.
In June 2002 the state sold $7.5 billion of revenue anticipation warrants (RAWs)
to meet cash needs. California will have to act more promptly to balance
revenues and expenditures in the future.

California's large and diverse economy provides sufficient bondholder
security, which is confirmed by Moody's and S&P's A1/A+ credit ratings.

FLORIDA

The state of Florida's historically strong financial position reflects
prudent fiscal management combined with a solid and diversifying economy. In
fact, Florida's $472.1 billion total economic output (in 2000) makes it the
nation's 4th largest state economy; it is estimated that the gross state
product, which grew 3.4% in 2001, is significantly above the U.S. economic
growth rate. The state's strong fiscal management is reflected in its
maintenance of its annual General Fund balances vis a vis revenues
(approximately 2.2% in 2002); this financial cushion provides additional
security to both the state and its bondholders. During the recent economic
expansion, Florida built up its budget stabilization fund to nearly $1 billion.
To date, the state government has met the challenges of declining revenues due
to the recession and the manifestations of the September 11th terrorist attacks.
Specifically, the state's Revenue Estimating Conference lowered its income
expectations, and reduced expenditures, in response to the sharp decline in
tourism that significantly impacted Florida's revenues. Sales tax receipts are
the General Fund's major revenue source (73% in 2001) with tourists generating
much of this income. The revenue revisions were accurate and the state expects
to end FY2002 with a small surplus. Florida residents' growing needs for
Medicaid (2000 and 2001 combined increase was +22%) and education continue to
add pressure to the $50.4 billion budget for FY2003. Florida's policy is to
maintain a manageable debt burden while continuing to use bonds to meet capital
expenses.

Florida's population increased at a 1.8% average annual rate between
1990-2000, compared to the 1% rate for the U.S., to over 16.33 million
residents. Net migration into the state accounted for 85% of this population
growth with approximately one third of the new residents coming from foreign
countries. Although economists anticipate slower future growth, Florida's
population expansion is expected to exceed that of the nation. The state's
economy is anchored by tourism, manufacturing and agriculture. Job creation grew
slightly (less than 1%) since September 2001. The 5.3% unemployment rate, (July
2002) is an increase from the same month last year (4.8%) but lower than
December's 6.0% peak and significantly below the national average (July 2002
5.9%). Trade and services, the major employment sectors, have remained flat. The
September 11th terrorist attacks significantly impacted Florida's heavily
tourist dependent economy causing declines in air traffic, the hotel industry,
amusement and recreation activities. Manufacturing jobs continue to decline
(4.5% year over year) and represent only 6.3% of Florida's employment, which is
approximately one half the national level. The construction industry is becoming
less important as the state's economy diversifies.

MARYLAND

Maryland is primarily an urban state with 70% of its 5.3 million residents
living in the 11 counties that constitute the "Baltimore--Washington Corridor".
The state's highly skilled workforce is heavily concentrated in the service and
government employment sectors; information, high technology and defense spending
are strong components of the state's economy. A history of relatively low
unemployment rates (July 2002 was 4.2% versus 5.9% for the U.S.) has supported
personal income growth over the past decade; the state's per capita income has
ranked 5th among the states since 1992. This high wealth level supports retail
sales tax receipts, which have increased at a 6.34% average annual rate for the
past decade. In FY2001 all taxes accounted for 66% of General Fund revenues,
which have grown at a 7% average annual rate since 1997.

Despite some impact from the recent recession, Maryland's General Fund
revenues have increased more rapidly than expenditures (7% versus 6%) over the
last four years. Prudent financial management combined with growing revenues
resulted in a FY2001 General Fund balance equal to 5.26% of revenues and a rate
stabilization fund in excess of $800 million. Reserve funds were used in FY2002
to supplement revenues, which dropped below budgeted levels. The state's Aaa/AAA
ratings reflect Maryland's strong, diverse economy, above average income levels,
and responsible fiscal management, which provide the highest level of bondholder
security.

NEW JERSEY

New Jersey has a strong and diversified economy, however, employment in New
Jersey peaked in June 2001. The past decade's economic expansion fueled the
state's dramatic increase in per capita disposable personal income to become the
highest in the nation. However, this past September, New Jersey's economy was
directly shaken by the terrorist attacks. The ramifications of that event
combined with the recession have pressured the labor market and resulted in a
21,000-job retrenchment. Reflecting this, the July 2002 unemployment rate
increased to 5.4%, significantly higher than the 4.2% rate a year earlier.
Manufacturing employment continued to decline in July, shedding 5.3% of the
state's industrial jobs, year over year.

Until this year, New Jersey was able to rely on its strong and growing
economy to support annual spending increases. This increasing prosperity,
between 1993-2000, enabled New Jersey to afford income, business, and corporate
tax reductions and still maintain a year-end operating surplus with reserve
funds in excess of $1 billion (2001). In contrast, FY2002 saw significant
declines in tax receipts and New Jersey chose to use all of its reserve funds to
plug a deficit in excess of 12% of General Fund revenues. The state's debt
burden remains manageable despite the 71% increase in appropriation bonds over
the past five years. New Jersey's debt ratings (Aa2/AA) were downgraded in 2002
reflecting the sluggish economy.

NEW YORK

Prudent, proactive and responsive fiscal management combined with
sufficient reserve funds helped to cushion the impact of the recession and the
September 11th terrorist attacks on New York State's fiscal well-being. After
September 11th, economic growth in New York ceased and the unemployment rate
grew to 6.0% in July, significantly higher than the 4.8% rate a year earlier.
Since July 2001, private sector employment has declined 2.3% or 83,700 jobs;
many of the losses were concentrated in New York City. While the state benefits
from a broad and diverse economic base and substantial wealth and resources, the
impact on the state's budget has been significant. New York used its $1.6
billion surplus from FY2001 to meet the budgetary needs in FY2002 thus
diminishing the state's fiscal flexibility. Next year management will be
challenged to maintain an operating surplus unless the economy rebounds and tax
receipts increase. The FY2003 budget was produced in a timely manner, which
helped to maintain New York State's AA rating from S&P.

The state's fiscal health is directly linked to that of New York City. The
recession, the destruction of the World Trade Center and the devastation to
lower Manhattan has impacted the city's business structure. New York City lost
83,100 jobs and the unemployment rate grew to 7.9% in July 2002, up from 6.0%
the previous year. Private sector jobs began to show the first indications of
growth this past spring and the city's employment has increased slowly each
month since March. The city's administration ended FY2002 in balance, with a
small surplus, and closed a $4 billion budget gap for FY2003. The coming years
present New York City with additional challenges; this long-term uncertainty has
prompted Moody's to change the outlook on New York City's A2 bond rating to
"negative".

VIRGINIA

Virginia maintains a strong economy with responsible fiscal management and
its fiscal position improved significantly over the last decade. The
commonwealth's skilled labor pool attracted expanding job opportunities
especially in the high tech and government employment sectors. This economic
growth produced low unemployment rates and fueled the commonwealth's per capita
income, which exceeded that of the U.S. during the 1990's. In fact, Virginia's
2.2% jobless rate, in 2000, was the lowest in the nation and significantly below
the national average. The last decade's growing affluence supported Virginia's
annual General Fund surpluses and bolstered its financial reserves.

By 2001, the national recession and particularly the slowdown in technology
began to affect the commonwealth's economy. The unemployment rate rose to 3.5%
and thus Virginia's revenue increases were more modest while expenditures
continued to grow (9.4%), which resulted in a General Fund deficit (5.7%).
Despite increasing fiscal pressures, the commonwealth's General Fund balance
(principally the rainy day fund) remained significant, at 7.8% of FY2001 General
Fund revenues.

The trend continued into FY2002 when weak revenue growth combined with a
decrease in individual income tax receipts was primarily responsible for the
3.8% General Fund revenue decline. The commonwealth's prudent fiscal managers
cut costs in an effort to balance revenues and expenditures.

This year (2002) the actual number of workers in Virginia declined for the
first time since 1992 and the commonwealth anticipates that 35,000 jobs will
disappear by year-end. The expected employment decline means that personal
income growth in 2002 is anticipated to be at the lowest rate in 30 years.

The commonwealth is rated Aaa/AAA. Continued strong, conservative financial
management will be needed to maintain this rating and to provide the highest
level of bondholder security.

THE TRUSTS' PORTFOLIOS AND INVESTMENT STRATEGY

The Trusts' portfolios are actively managed to spread exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trusts to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons.

Additionally, each of the Trusts in this report may employ leverage seeking
to enhance their income by borrowing at short-term rates and investing the
proceeds in longer maturity issues that have higher yields. The degree to which
the Trusts can benefit from their use of leverage may affect their ability to
pay high monthly income. The use of leverage increases risk, including the risk
of greater volatility. There are no assurances that the Trusts leverage strategy
will succeed. The table below states the approximate amount of leverage for each
Trust at the period ended August 31, 2002.

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FUND LEVERAGE
--------------------------------------------------------
BLACKROCK MUNICIPAL BOND TRUST 38%
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BLACKROCK MUNICIPAL INCOME TRUST II --*
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BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST 38%
--------------------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II --*
--------------------------------------------------------
BLACKROCK FLORIDA MUNICIPAL BOND TRUST 38%
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BLACKROCK MARYLAND MUNICIPAL BOND TRUST 38%
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BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST 38%
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BLACKROCK NEW YORK MUNICIPAL BOND TRUST 38%
--------------------------------------------------------
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II --*
--------------------------------------------------------
BLACKROCK VIRGINIA MUNICIPAL BOND TRUST 37%
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* On September 19, 2002, the Trust utilized
leverage by the issuance of preferred shares in
the amount of approximately 38% of its total
capital.

We look forward to continuing to manage BlackRock's closed-end funds to
benefit from the opportunities available to investors in the fixed income
markets. We thank you for your investment and continued confidence in the
BlackRock closed-end funds. Please feel free to call our marketing center at
(800) 227-7BFM (7236) if you have any specific questions that were not addressed
in this report.

Sincerely,

/s/ Robert S. Kapito /s/ Kevin M. Klingert
------------------------------ ------------------------------
Robert S. Kapito Kevin M. Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, Inc.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK MUNICIPAL BOND TRUST

TRUST INFORMATION
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Symbol on New York Stock Exchange: BBK
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Initial Offering Date: April 30, 2002
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Closing Share Price as of 8/31/02: $14.90
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Net Asset Value as of 8/31/02: $14.76
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($14.90)(1): 6.80%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.084375
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 1.012500
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $14.90 $15.20 $13.95
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.76 $14.76 $14.28
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit
quality allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Industrial & Pollution Control 27%
---------------------------------------------------
Hospitals 18%
---------------------------------------------------
Housing 13%
---------------------------------------------------
Tobacco 12%
---------------------------------------------------
City, County & State 8%
---------------------------------------------------
Transportation 7%
---------------------------------------------------
Tax 6%
---------------------------------------------------
Power 3%
---------------------------------------------------
Education 2%
---------------------------------------------------
Other 4%
---------------------------------------------------

CREDIT BREAKDOWN*
---------------------------------------------------
CREDIT RATING AUGUST 31, 2002
---------------------------------------------------
AAA/Aaa 24%
---------------------------------------------------
AA/Aa 4%
---------------------------------------------------
A/A 39%
---------------------------------------------------
BBB/Baa 22%
---------------------------------------------------
BB/Ba 3%
---------------------------------------------------
B/B 1%
---------------------------------------------------
Not Rated 7%
---------------------------------------------------

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* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK MUNICIPAL INCOME TRUST II

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BLE
--------------------------------------------------------------------------------
Initial Offering Date: July 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $15.00
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.40
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($15.00)(1): N/A
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.08375
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 1.00500
--------------------------------------------------------------------------------

(1) First monthly distribution was declared on September 20, 2002, payable on
October 1, 2002 for common shareholders of record as of September 27, 2002.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $15.00 $15.05 $14.80
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.40 $14.40 $14.31
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Tobacco 17%
---------------------------------------------------
City, County & State 15%
---------------------------------------------------
Hospitals 15%
---------------------------------------------------
Industrial & Pollution Control 12%
---------------------------------------------------
Education 10%
---------------------------------------------------
Transportation 9%
---------------------------------------------------
Tax 8%
---------------------------------------------------
Water & Sewer 8%
---------------------------------------------------
Housing 4%
---------------------------------------------------
Power 2%
---------------------------------------------------

CREDIT BREAKDOWN*
---------------------------------------------------
CREDIT RATING AUGUST 31, 2002
---------------------------------------------------
AAA/Aaa 31%
---------------------------------------------------
AA/Aa 11%
---------------------------------------------------
A/A 38%
---------------------------------------------------
BBB/Baa 11%
---------------------------------------------------
BB/Ba 4%
---------------------------------------------------
B/B 5%
---------------------------------------------------

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* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BZA
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $14.58
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.87
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($14.58)(1): 6.43%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.078125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.937500
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $14.58 $15.10 $14.24
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.87 $14.87 $14.19
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Education 21%
---------------------------------------------------
Hospitals 17%
---------------------------------------------------
Housing 14%
---------------------------------------------------
Transportation 9%
---------------------------------------------------
Tobacco 9%
---------------------------------------------------
Water & Sewer 9%
---------------------------------------------------
City, County & State 8%
---------------------------------------------------
District 3%
---------------------------------------------------
Industrial & Pollution Control 2%
---------------------------------------------------
Power 2%
---------------------------------------------------
Lease Revenue 1%
---------------------------------------------------
Other 5%
---------------------------------------------------

CREDIT BREAKDOWN*
---------------------------------------------------
CREDIT RATING AUGUST 31, 2002
---------------------------------------------------
AAA/Aaa 34%
---------------------------------------------------
A/A 41%
---------------------------------------------------
BBB/Baa 9%
---------------------------------------------------
BB/Ba 2%
---------------------------------------------------
Not Rated 14%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BCL
--------------------------------------------------------------------------------
Initial Offering Date: July 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $15.01
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.42
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($15.01)(1): N/A
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.08125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.97500
--------------------------------------------------------------------------------

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $15.01 $15.09 $15.00
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.42 $14.42 $14.27
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Education 26%
---------------------------------------------------
City, County & State 12%
---------------------------------------------------
Hospitals 12%
---------------------------------------------------
Transportation 10%
---------------------------------------------------
District 9%
---------------------------------------------------
Tobacco 9%
---------------------------------------------------
Lease Revenue 7%
---------------------------------------------------
Tax 5%
---------------------------------------------------
Industrial & Pollution Control 5%
---------------------------------------------------
Power 5%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK FLORIDA MUNICIPAL BOND TRUST

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BIE
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $14.92
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.90
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($14.92)(1) 6.13%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.07625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.91500
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $14.92 $15.30 $14.65
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.90 $14.90 $14.26
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Hospitals 24%
---------------------------------------------------
Power 14%
---------------------------------------------------
Tax 14%
---------------------------------------------------
City, County & State 10%
---------------------------------------------------
Lease Revenue 9%
---------------------------------------------------
Water & Sewer 7%
---------------------------------------------------
Education 5%
---------------------------------------------------
Industrial & Pollution Control 5%
---------------------------------------------------
Transportation 4%
---------------------------------------------------
Other 8%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK MARYLAND MUNICIPAL BOND TRUST

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BZM
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $14.95
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.76
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($14.95)(1): 5.62%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.07000
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.84000
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $14.95 $15.75 $14.79
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.76 $14.76 14.19
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Education 23%
---------------------------------------------------
Hospitals 17%
---------------------------------------------------
Lease Revenue 16%
---------------------------------------------------
Water & Sewer 12%
---------------------------------------------------
Transportation 9%
---------------------------------------------------
City, County & State 9%
---------------------------------------------------
Housing 6%
---------------------------------------------------
Power 4%
---------------------------------------------------
Other 4%
---------------------------------------------------

CREDIT BREAKDOWN*
---------------------------------------------------
CREDIT RATING AUGUST 31, 2002
---------------------------------------------------
AAA/Aaa 34%
---------------------------------------------------
AA/Aa 23%
---------------------------------------------------
A/A 35%
---------------------------------------------------
BBB/Baa 4%
---------------------------------------------------
Not Rated 4%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BLJ
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $14.65
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.58
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($14.65)(1): 6.35%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.07750
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.93000
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $14.65 $15.25 $14.58
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.58 $14.58 $14.24
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Hospitals 24%
---------------------------------------------------
Transportation 17%
---------------------------------------------------
Housing 15%
---------------------------------------------------
Lease Revenue 9%
---------------------------------------------------
Tobacco 9%
---------------------------------------------------
City, County & State 5%
---------------------------------------------------
Education 5%
---------------------------------------------------
Power 4%
---------------------------------------------------
Industrial & Pollution Control 4%
---------------------------------------------------
Recreational 4%
---------------------------------------------------
Other 4%
---------------------------------------------------

CREDIT BREAKDOWN*
---------------------------------------------------
CREDIT RATING AUGUST 31, 2002
---------------------------------------------------
AAA/Aaa 26%
---------------------------------------------------
AA/Aa 4%
---------------------------------------------------
A/A 44%
---------------------------------------------------
BBB/Baa 18%
---------------------------------------------------
B/B 4%
---------------------------------------------------
Not Rated 4%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK NEW YORK MUNICIPAL BOND TRUST

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BQH
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $14.50
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.83
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($14.50)(1): 6.31%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.07625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.91500
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $14.50 $15.21 $13.60
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.83 $14.83 $14.22
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Transportation 18%
---------------------------------------------------
Housing 13%
---------------------------------------------------
Tobacco 13%
---------------------------------------------------
Education 12%
---------------------------------------------------
Water & Sewer 8%
---------------------------------------------------
Tax 8%
---------------------------------------------------
Hospitals 7%
---------------------------------------------------
City, County & State 5%
---------------------------------------------------
District 5%
---------------------------------------------------
Lease Revenue 4%
---------------------------------------------------
Power 3%
---------------------------------------------------
Other 4%
---------------------------------------------------

CREDIT BREAKDOWN*
---------------------------------------------------
CREDIT RATING AUGUST 31, 2002
---------------------------------------------------
AAA/Aaa 21%
---------------------------------------------------
AA/Aa 30%
---------------------------------------------------
A/A 41%
---------------------------------------------------
B/B 4%
---------------------------------------------------
Not Rated 4%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BFY
--------------------------------------------------------------------------------
Initial Offering Date: July 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $15.10
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.47
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($15.10)(1): N/A
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.07875
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.94500
--------------------------------------------------------------------------------

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $15.10 $15.45 $15.00
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.47 $14.47 $14.30
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Transportation 38%
---------------------------------------------------
Education 16%
---------------------------------------------------
Water & Sewer 12%
---------------------------------------------------
Tobacco 12%
---------------------------------------------------
Tax 7%
---------------------------------------------------
District 6%
---------------------------------------------------
Hospitals 3%
---------------------------------------------------
Housing 3%
---------------------------------------------------
Power 3%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

TRUST SUMMARIES AS OF AUGUST 31, 2002

BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BHV
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Share Price as of 8/31/02: $15.20
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/02: $14.90
--------------------------------------------------------------------------------
Yield on Closing Share Price as of 8/31/02 ($15.20)(1): 5.58%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $ 0.070625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $ 0.847500
--------------------------------------------------------------------------------

(1) Yield on closing share price is calculated by dividing the current
annualized distribution per share by the closing share price.
(2) The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust's share price and NAV from
inception date to 8/31/02:

---------------------------------------------
8/31/02 HIGH LOW
--------------------------------------------------------------------------------
SHARE PRICE $15.20 $15.70 $14.81
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.90 $14.90 $14.11
--------------------------------------------------------------------------------

The following charts show the Trust's asset composition and credit quality
allocations:

SECTOR BREAKDOWN
---------------------------------------------------
SECTOR AUGUST 31, 2002
---------------------------------------------------
Transportation 20%
---------------------------------------------------
Water & Sewer 19%
---------------------------------------------------
City, County & State 19%
---------------------------------------------------
Hospitals 13%
---------------------------------------------------
Housing 11%
---------------------------------------------------
Lease Revenue 10%
---------------------------------------------------
Education 4%
---------------------------------------------------
Other 4%
---------------------------------------------------

------------
* Using the higher of Standard & Poor's, Moody's
or Fitch's rating. Percentages based on long-term
investments.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK MUNICIPAL BOND TRUST

PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
--------------------------------------------------------------------------------------------------------------------------------

LONG-TERM INVESTMENTS--159.8%
ALABAMA--11.5%
Baa2 $ 9,250 Courtland Ind. Dev. Brd. Solid Wst. Disp. Rev., Champion Intl. Corp. Proj.,
Ser. A, 6.50%, 9/01/25 ...................................................... 09/05 @ 102 $ 9,511,868
A2 7,500 Huntsville Hlth. Care Auth. Rev., Ser. A, 5.75%, 6/01/31 ...................... 06/11 @ 101 7,637,475
-----------
17,149,343
-----------
ALASKA--6.8%
Aa1 10,000 Valdez Marine Term. Rev., BP Pipelines Inc. Proj., Ser. A, 5.85%, 8/01/25 ..... 08/03 @ 102 10,243,000
-----------
CALIFORNIA--4.5%
BB- 8,000 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. B, 7.50%, 12/01/24 ..................................................... 12/12 @ 102 6,667,360
-----------
CONNECTICUT--10.4%
Connecticut St. Dev. Auth. PCR, Connecticut Lt. & Pwr.,
A3 6,500 Ser. A, 5.85%, 9/01/28 ...................................................... 10/08 @ 102 6,754,540
A3 8,500 Ser. B, 5.95%, 9/01/28 ...................................................... 10/08 @ 102 8,731,370
-----------
15,485,910
-----------
DISTRICT OF COLUMBIA--6.9%
AAA 33,450 Dist. Columbia Rev., Cap. Appr. Univ. Georgetown, Ser. A, Zero Coupon,
4/01/38, MBIA ............................................................ 04/11 @ 20.243 4,140,441
AAA 6,000 Dist. Columbia Tax Incr. Rev., Gallary Place Proj., 5.40%, 7/01/31, FSA ....... 07/12 @ 100 6,157,740
-----------
10,298,181
-----------
FLORIDA--15.9%
Baa3 6,200 Martin Cnty. Indl. Dev. Auth., Indl. Dev. Rev., Indiantown Cogeneration
Proj., Ser. A, 7.875%, 12/15/25 ............................................. 12/04 @ 102 6,406,460
A3 10,000 Orange Cnty. Hlth. Facs. Auth. Rev., Hosp. Adventist Hlth. Sys., 5.625%,
11/15/32 .................................................................... 11/12 @ 101 9,966,900
AAA 7,255 Palm Beach Cnty. Hsg. Fin. Auth., Mult. Fam. Rev., Indian Trace Apts., Ser. A,
5.625%, 1/01/44, FSA ........................................................ 01/12 @ 100 7,351,491
-----------
23,724,851
-----------
ILLINOIS--29.2%
AAA 23,065 Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC ......................... 01/12 @ 23.018 3,183,892
NR 10,500++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 .................... 10/14 @ 100 10,746,362
AAA 9,880 Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA ..................................... 01/11 @ 101 10,201,693
Baa2 6,000 Illinois Edl. Facs. Auth. Student Hsg. Rev., Edl. Advancement Fund Univ.
Ctr. Proj., 6.25%, 5/01/34 .................................................. 05/07 @ 100 6,006,540
A- 6,000 Illinois Hlth. Facs. Auth. Rev., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29 .... 07/12 @ 100 6,101,700
Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place
Expansion Proj., Ser. A, MBIA,
AAA 10,000 Zero Coupon, 6/15/35 ....................................................... No Opt. Call 1,587,400
AAA 10,000 Zero Coupon, 12/15/36 ...................................................... No Opt. Call 1,439,200
AAA 10,000 Zero Coupon, 12/15/37 ...................................................... No Opt. Call 1,359,700
AAA 3,000 5.25%, 6/15/42 .............................................................. 06/12 @ 101 3,025,530
-----------
43,652,017
-----------
INDIANA--1.4%
NR 2,020 Mult. Fam. Hsg. Rev. Bond Pass-Thru Cert. Beneficial Ownership, Canterbury
House Apts., Ser. 1, 5.90%, 12/01/34 ........................................ 12/11 @ 100 2,052,845
-----------
KANSAS--3.5%
A3 5,000 Wichita Arpt. Auth. Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A,
6.25%, 6/15/32 .............................................................. 06/12 @ 101 5,214,350
-----------
LOUISIANA--3.9%
A3 6,000 Louisiana Pub. Facs. Auth. Rev., Ochsner Clinic Fndtn. Proj., Ser. B, 5.50%,
5/15/32 ..................................................................... 05/12 @ 101 5,813,580
-----------
MASSACHUSETTS--5.0%
AAA 7,500 Massachusetts St. Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/37,
MBIA ........................................................................ 01/07 @ 102 7,429,275
-----------
MICHIGAN--3.0%
Baa2 4,500 Delta Cnty. Econ. Dev. Corp., Environ. Impvt. Rev., Mead Westvaco Escanaba,
Ser. A, 6.25%, 4/15/27 ...................................................... 04/12 @ 100 4,432,725
-----------

See Notes to Financial Statements.

NEW JERSEY--7.2%
New Jersey Econ. Dev. Auth.,
Baa3 $ 7,500 Econ. Dev. Rev., Kapkowski Road Landfill Proj., 6.50%, 4/01/28 ............. No Opt. Call $ 8,229,525
B+ 3,000 Spl. Fac. Rev., Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........... 11/10 @ 101 2,508,030
-----------
10,737,555
-----------
OREGON--0.7%
NR 1,000 Mult. Fam. Hsg. Rev. Bond Pass-Thru Cert. Beneficial Ownership, Pacific
Tower Apts., Ser. 6, 6.05%, 11/01/34 ....................................... 06/12 @ 100 1,013,840
-----------
RHODE ISLAND--6.5%
A1 10,000 Tobacco Settlement Fin. Corp., Tobacco Settlement Rev., Ser. A, 6.25%,
6/01/42 .................................................................... 06/12 @ 100 9,729,000
-----------
SOUTH CAROLINA--6.7%
A1 10,000 Tobacco Settlement Rev. Mgmt. Auth., Tobacco Settlement Rev., Ser. B,
6.375%, 5/15/28 ............................................................ 05/11 @ 101 10,052,400
-----------
TEXAS--20.0%
AAA 11,690 Harris Cnty. Houston Sports Auth. Rev., Ser. G, Zero Coupon, 11/15/41,
MBIA ..................................................................... 11/31 @ 53.779 1,253,285
NR 2,840 Mult. Fam. Hsg. Rev. Bond Pass-Thru Cert. Beneficial Ownership, Copperwood
Ranch Apts., Ser. 9, 5.95%, 11/01/35 ........................................ 06/12 @ 100 2,879,504
Baa2 10,000 Red River Auth., PCR, Celanese Proj., Ser. B, 6.70%, 11/01/30 ................. 05/12 @ 101 10,391,300
AAA 60,000 Texas St. Tpke. Auth. Central Texas, Central Texas Tpke. Sys. Rev.,
Zero Coupon, 8/15/35, AMBAC .............................................. 08/12 @ 25.665 8,464,200
Baa1 6,840 Tyler Hlth. Facs. Dev., Corp. Hosp. Rev., Mother Frances Hosp. Regl. Hlth,
6.00%, 7/1/31 ............................................................... 07/12 @ 100 6,892,942
-----------
29,881,231
-----------
VIRGINIA--3.4%
A2 5,000 Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr.
Arlington Hlth. Sys., 5.25%, 7/01/31 ........................................ 07/11 @ 101 5,036,500
-----------
WEST VIRGINIA--1.9%
AAA 20,255 West Virginia St. Hsg. Dev. Fund, Hsg. Fin. Rev., Zero Coupon, 11/01/37 ...... No Opt. Call 2,896,060
-----------
WISCONSIN--11.4%
A1 10,000 Badger Tobacco Asset Sec. Corp. Rev., 6.375%, 6/01/32 ......................... 06/12 @ 100 9,913,700
A2 7,000 Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Wheaton Franciscan Svcs.,
5.75%, 8/15/30 .............................................................. 02/12 @ 101 7,142,240
-----------
17,055,940
-----------
TOTAL LONG-TERM INVESTMENTS (COST $233,262,988) ............................... 238,565,963
-----------
SHORT-TERM INVESTMENTS**--0.1%
VMIG1 75 Harrisburg Auth. Rev., 1.41%, 9/05/02, FRWD (cost $75,000) .................... N/A 75,000
-----------
TOTAL INVESTMENTS--159.9% (COST $233,337,988) ................................. 238,640,963
Other assets in excess of liabilities--0.7% ................................... 1,122,007
Preferred shares at redemption value, including dividends payable--(60.6)% .... (90,510,410)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................ $149,252,560
===========

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 7.2% of its net assets in securities restricted as to resale.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation GO -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
FRWD -- Floating Rate Weekly Demand PCR -- Pollution Control Revenue
FSA -- Financial Security Assurance
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK MUNICIPAL INCOME TRUST II

LONG-TERM INVESTMENTS--94.3%
ALABAMA--3.6%
AAA $12,000 Birmingham Wtr. Wks. & Swr. Brd., Wtr. & Swr. Rev., Ser. B, 5.00%,
1/01/43, MBIA .............................................................. 01/13 @ 100 $ 11,799,960
------------
CALIFORNIA--3.5%
BB- 13,500 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 .................................................... 12/12 @ 102 11,251,170
------------
COLORADO--1.2%
AAA 4,000 Northwest Pkwy. Pub. Hwy. Auth. Rev., Ser. A, 5.25%, 6/15/41, FSA ............ 06/11 @ 102 4,047,280
------------
DISTRICT OF COLUMBIA--4.8%
A1 15,000 Dist. Columbia Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 ................. 05/11 @ 101 15,387,000
------------
FLORIDA--4.0%
AA 10,000 Jacksonville Econ. Dev. Comm. Hlth. Facs. Rev., Mayo Clinic, Ser. C, 5.50%,
11/15/36 ................................................................... 11/11 @ 101 10,273,100
A2 2,650 Leesburg Hosp. Rev., Leesburg Regl. Med Ctr. Proj., 5.50%, 7/01/32 ........... 07/12 @ 100 2,645,150
------------
12,918,250
------------
ILLINOIS--13.1%
AAA 4,000 Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC ............................... 01/12 @ 100 4,078,480
A3 5,000 Illinois Dev. Fin. Auth. Hosp. Rev., Adventist Hlth. Sys./Sunbelt Obl.,
5.65%, 11/15/24 ............................................................ 11/09 @ 101 4,997,700
AAA 15,000 Illinois Sports Facs. Auth., St. Tax Supported Rev., Zero Coupon, 6/15/30,
AMBAC ...................................................................... 06/15 @ 101 9,960,900
Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place
Expansion Proj., Ser. A, MBIA,
AAA 45,190 Zero Coupon, 6/15/33 ...................................................... No Opt. Call 8,126,066
AAA 5,000 Zero Coupon, 6/15/40 ...................................................... No Opt. Call 581,100
AAA 14,500 5.25%, 6/15/42 ............................................................. 06/12 @ 101 14,623,395
------------
42,367,641
------------
INDIANA--7.8%
Aa2 5,000 Indiana Hlth. Fac. Fin. Auth. Rev., Ascension Hlth., Ser. F, 5.375%,
11/15/25 ................................................................... 11/12 @ 101 4,983,800
AAA 19,735 Indianapolis Local Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A, 5.25%,
7/01/33, MBIA .............................................................. 07/12 @ 100 20,118,846
------------
25,102,646
------------
LOUISIANA--7.2%
A3 24,000 Louisiana Pub. Facs. Auth. Rev., Ochsner Clinic Fndtn. Proj., Ser. B, 5.50%,
5/15/32 .................................................................... 05/12 @ 101 23,254,320
------------
MICHIGAN--3.1%
Aa2 10,000 Michigan St. Hosp. Fin. Auth. Rev., Ascension Hlth., Ser. B, 5.25%, 11/15/26 11/12 @ 101 9,919,900
------------
NEW JERSEY--6.8%
New Jersey Econ. Dev. Auth.,
Baa3 7,475 Econ. Dev. Rev., Kapkowski Road Landfill Proj., 6.50%, 4/01/28 ............ No Opt. Call 8,202,093
Baa3 5,000 Econ. Dev. Rev., Kapkowski Road Landfill Proj., 6.50%, 4/01/31 ............ No Opt. Call 5,448,300
B+ 10,100 Spl. Fac. Rev., Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........... 11/10 @ 101 8,443,701
------------
22,094,094
------------
NEW YORK--2.7%
B3 8,800 Port Auth. New York & New Jersey Spec. Oblig. Rev., Cont'l./Eastern Proj.
LaGuardia, 9.00%, 12/01/10 ................................................. 10/02 @ 101 8,818,568
------------
NORTH CAROLINA--1.3%
Aa1 4,250 No. Carolina Cap. Facs. Fin. Agcy. Rev., Duke Univ. Proj., Ser. A, 5.125%,
7/01/42 .................................................................... 10/12 @ 100 4,249,490
------------
RHODE ISLAND--4.4%
A1 14,620 Tobacco Settlement Fin. Corp., Tobacco Settlement Rev., Ser. A, 6.25%,
6/01/42 .................................................................... 06/12 @ 100 14,223,798
------------
SOUTH CAROLINA--7.4%
Greenwood Cnty. Hosp. Rev., Self Mem. Hosp. Facs.,
A2 3,280 5.50%, 10/01/26 ............................................................ 10/11 @ 100 3,306,666
A2 3,250 5.50%, 10/01/31 ............................................................ 10/11 @ 100 3,262,480
AA 3,750 So. Carolina Jobs Econ. Dev. Auth. Hosp. Facs. Rev., Georgetown Mem. Hosp.,
5.375%, 2/01/30, RAA ....................................................... 08/11 @ 100 3,767,513
A1 13,445 So. Carolina Tobacco Settlement Auth. Rev., Ser. B, 6.375%, 5/15/30 ......... No Opt. Call 13,557,938
------------
23,894,597
------------
SOUTH DAKOTA--3.1%
A1 10,000 Edl. Enhancement Funding Corp., Tobacco Settlement Rev., Ser. B, 6.50%,
6/01/32 ..................................................................... 6/12 @ 101 9,882,300
------------

See Notes to Financial Statements.

TEXAS--12.7%
Baa2 $20,000 Gulf Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24 .... 08/12 @ 100 $ 20,170,800
Texas St. Tpke. Auth., Central Texas Tpke. Sys. Rev., AMBAC,
AAA 73,370 Zero Coupon, 8/15/36 .................................................... 08/12 @ 24.171 9,742,069
AAA 65,000 Zero Coupon, 8/15/37 .................................................... 08/12 @ 22.708 8,095,750
AAA 27,600 Zero Coupon, 8/15/38 .................................................... 08/12 @ 21.384 3,227,544
------------
41,236,163
------------

VIRGINIA--1.6%
A2 5,000 Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr.
Arlington Hlth. Sys., 5.25%, 7/01/25 ....................................... 07/11 @ 101 5,069,700
------------
WISCONSIN--6.0%
A1 14,500 Badger Tobacco Asset Sec. Corp. Rev., 6.375%, 6/01/32 ........................ 06/12 @ 100 14,374,865
A2 5,000 Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Wheaton Franciscan Svcs.,
5.75%, 8/15/25 ............................................................. 02/12 @ 101 5,129,650
------------
19,504,515
------------
TOTAL LONG-TERM INVESTMENTS (COST $303,375,734) .............................. 305,021,392
------------
SHORT-TERM INVESTMENTS**--26.6%
ALABAMA--6.2%
VMIG1 10,000 Homewood Edl. Bldg. Auth. Rev., Edl. Facs. Samford Univ., 1.80%, 9/03/02,
FRDD ....................................................................... N/A 10,000,000
A1+ 10,000 Jefferson Cnty., GO, Ser. B, 1.80%, 9/03/02, FRDD ............................ N/A 10,000,000
------------
20,000,000
------------
CALIFORNIA--2.8%
VMIG1 75 California Hlth. Facs. Fin. Auth. Rev., Insured Scripps Hlth., Ser. B, 1.18%,
9/04/02, FRWD .............................................................. N/A 75,000
A1+ 9,000 Orange Cnty. Sanitation Dists., COP, Ser. B, 1.85%, 9/03/02, FRDD ............ N/A 9,000,000
------------
9,075,000
------------
MARYLAND--3.1%
A1+ 10,000 Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev., Pooled Ln. Prog., Ser. D,
1.35%, 9/05/02, FRWD ....................................................... N/A 10,000,000
------------
MASSACHUSETTS--1.2%
VMIG1 4,000 Massachusetts St. Hlth. & Edl. Facs. Auth. Rev., Boston Univ., Ser. Q-1, 1.35%,
9/05/02, FRWD .............................................................. N/A 4,000,000
------------
MISSOURI--0.6%
A1+ 2,000 Missouri St. Hlth. and Edl. Facs. Auth. Edl., Facs. Rev., Washington Univ.,
Ser. C, 1.80%, 9/03/02, FRDD ............................................... N/A 2,000,000
------------
NEW JERSEY--5.4%
VMIG1 6,650 New Jersey Econ. Dev. Auth., Econ. Dev. Rev., Airis Newark LLC Proj., 1.30%,
9/05/02, FRWD .............................................................. N/A 6,650,000
A1+ 10,700 New Jersey St. Edl. Facs. Auth. Rev., Princeton Univ., Ser. B, 1.60%, 9/03/02,
FRDD ....................................................................... N/A 10,700,000
------------
17,350,000
------------
NEW YORK--3.1%
VMIG1 10,000 New York City, GO, Ser. H, 1.80%, 9/03/02, FRDD .............................. N/A 10,000,000
------------
NORTH CAROLINA--1.7%
F1+ 5,540 No. Carolina Edl. Facs. Fin. Agcy. Rev., Edl. Facs. Gaston Day Sch., 1.40%,
9/05/02, FRWD .............................................................. N/A 5,540,000
------------
OREGON--2.5%
A1+ 8,000 Oregon St., GO, Ser. 73E, 1.25%, 9/04/02, FRWD ............................... N/A 8,000,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $85,965,000) .............................. 85,965,000
------------
TOTAL INVESTMENTS--120.9% (COST $389,340,734) ................................ 390,986,392

Liabilities in excess of other assets--(20.9)% ............................... (67,503,558)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $323,482,834
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance
COP -- Certificate of Participation GO -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
FRDD -- Floating Rate Daily Demand RAA -- Radian Asset Assurance
FRWD -- Floating Rate Weekly Demand
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST

LONG-TERM INVESTMENTS--158.2%
CALIFORNIA--154.9%
AAA $ 5,000 Anaheim Pub. Fin. Auth. Lease Rev., Pub. Impvts Proj., Ser. C, Zero Coupon,
9/01/32, FSA .............................................................. No Opt. Call $ 991,100
California Cnty. Tobacco Sec. Agcy., Asset Bkd., Ser. A,
A 4,000 Kern Cnty. Fdg., 6.125%, 6/01/43 .......................................... 06/12 @ 100 4,001,800
A1 3,250 Stanislaus Fdg., 5.875%, 6/01/43 .......................................... 06/12 @ 100 3,228,128
A2 4,000 California Edl. Facs. Auth. Rev., Univ. of San Diego, Ser. A, 5.25%,
10/01/30 .................................................................. 10/12 @ 100 4,066,880
A+ 3,270 California Hlth. Facs. Fin. Auth. Rev., Insured Hlth. Fac. Valleycare,
Ser. A, 5.375%, 5/01/27 ................................................... 05/12 @ 100 3,323,595
AAA 20,000 California Hsg. Fin. Agcy. Rev., Home Mtg., Ser. K, Zero Coupon, 2/01/33,
MBIA ..................................................................... 02/12 @ 27.46 3,343,800
California Infrastructure & Econ. Dev.,
AAA 3,500 Bank Insd. Rev., Rand Corp., Ser. A,
5.25%, 4/01/42, AMBAC ..................................................... 04/12 @ 100 3,542,805
AAA 3,000 Bank Lease Rev., Asian Museum Fdtn. of San Francisco, 5.25%, 6/01/30, MBIA 06/07 @ 101 3,057,720
A- 3,750 Bank Rev., J David Gladstone Inst. Proj., 5.25%, 10/01/34 ................. 10/11 @ 101 3,733,612
A1 2,500 California St., GO, 5.25%, 4/01/30 .......................................... 04/12 @ 100 2,540,250
California Statewide Cmnty. Dev. Auth. Rev.,
A3 5,000 Kaiser Permanente, Ser. A, 5.50%, 11/01/32 ................................ 11/12 @ 100 5,088,500
A2 3,250 Sutter Hlth. Oblig Grp., Ser. B, 5.625%, 8/15/42 .......................... 04/12 @ 100 3,294,947
NR 3,500++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 .................. 10/14 @ 100 3,582,121
Baa3 3,750 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40 ...... 01/10 @ 101 3,791,775
AAA 2,000 Los Angeles Cnty. Sch. Regionalized Business Svcs., COP, Cnty. Schs Pooled
Fin. Prog., Ser. B, 5.125%, 9/01/31, AMBAC ................................ 10/02 @ 100 2,001,080
AAA 3,500 Los Angeles Dept. Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC 07/11 @ 100 3,526,285
Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
BB- 1,000 Ser. B, 7.50%, 12/01/24 ................................................... 12/12 @ 102 833,420
BB- 1,000 Ser. C, 7.50%, 12/01/24 ................................................... 12/12 @ 102 833,420
Mult. Fam. Hsg. Rev. Bond Pass Through Cert., Beneficial Ownership,
NR 2,425 Westgate Courtyard Apts., Ser. 3, 5.80%, 11/01/34 ......................... 12/11 @ 100 2,457,810
NR 2,240 San Lucas Apts., Ser. 5, 5.95%, 11/01/34 .................................. 06/12 @ 100 2,271,159
NR 2,400 Orange Cnty. Cmnty. Facs. Dist. Spl. Tax, Ladera Ranch, Ser. A, 6.00%,
8/15/32 ................................................................... 08/10 @ 101 2,444,760
BBB 3,000 Palm Springs Mobile Home Park Rev., Sahara Mobile Home Park, 5.75%, 5/15/37 . 05/12 @ 102 3,041,910
AAA 3,500 San Francisco Bay Area Rapid Trans., Dist. Sales Tax Rev., 5.125%, 7/01/36,
AMBAC ..................................................................... 07/11 @ 100 3,541,230
AAA 15,000 Santa Ana Unified Sch. Dist., COP, Cap. Appr. Fin. Proj., Zero Coupon,
4/01/29, FSA .............................................................. No Opt. Call 3,575,400
AAA 3,500 Santa Clara Valley Wtr. Dist., Wtr. Util. Sys. Rev., Ser. A, 5.125%,
6/01/31, FGIC ............................................................. 06/10 @ 100 3,536,575
A1 1,500 Torrance Hosp. Rev., Torrance Mem. Med Ctr., Ser. A, 5.50%, 6/01/31 ......... 06/11 @ 101 1,527,870
------------
77,177,952
------------
PUERTO RICO--3.3%
A- 1,645 Puerto Rico Elec. Pwr. Auth., Pwr. Rev., Ser. II, 5.25%, 7/01/31 ............ 07/12 @ 101 1,672,735
------------
TOTAL INVESTMENTS--158.2% (COST $76,659,996) ................................ 78,850,687
Other assets in excess of liabilities--1.9% ................................. 965,221
Preferred shares at redemption value, including dividends payable--(60.1)% .. (29,981,653)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $ 49,834,255
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 7.2% of its net assets in securities restricted as to resale.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance
COP -- Certificate of Participation GO -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II

LONG-TERM INVESTMENTS--73.2%
Anaheim Pub. Fin. Auth. Lease Rev., Pub. Impvt. Proj., Ser. C, FSA,
AAA $15,000 Zero Coupon, 9/01/34 ...................................................... No Opt. Call $ 2,669,100
AAA 10,000 Zero Coupon, 9/01/36 ...................................................... No Opt. Call 1,597,400
A1 4,500 California Cnty. Tobacco Securitization Agcy., Tobacco Settlement Rev.,
Gold Country Fdg. Corp., 6.00%, 6/01/38 ................................... 06/12 @ 100 4,493,880
California Statewide Fin. Auth., Tobacco Settlement Rev.,
A1 5,000 6.00%, 5/01/37 ............................................................ 05/12 @ 100 4,921,500
A1 1,750 Ser. B, 6.00%, 5/01/43 .................................................... 05/12 @ 100 1,734,460
AAA 6,000 Corona Norco Unified Sch. Dist. Spl. Tax, Cmnty. Facs. Dist. No. 98-1,
5.10%, 9/01/32, AMBAC ..................................................... 09/12 @ 100 6,067,440
Foothill / Eastn. Transp. Corridor Agcy., Toll Road Rev., Ser. A,
AAA 15,470 Zero Coupon, 1/01/26 ...................................................... ETM 4,515,848
AAA 4,890 Zero Coupon, 1/01/30 ...................................................... ETM 1,146,314
AAA 5,000 La Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%,
9/01/32, AMBAC ............................................................ 09/12 @ 102 5,076,650
BB- 2,500 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 ................................................... 12/12 @ 102 2,083,550
Oxnard Impvt. Bond Act 1915, Spec. Assmt. Dist. No. 01 1 Rice Avenue,
NR 2,000 5.625%, 9/02/27 ........................................................... 03/03 @ 103 1,933,640
NR 2,000 5.70%, 9/02/32 ............................................................ 03/03 @ 103 1,935,860
AAA 4,500 Port Oakland, Ser. L, 5.00%, 11/01/32, FGIC ................................. 11/12 @ 100 4,494,060
AAA 5,000 Poway Redev. Agcy. Tax Allocation, Paguay Redev. Proj., 5.125%, 6/15/33,
AMBAC ..................................................................... 12/11 @ 101 5,067,200
AAA 5,000 Sacramento City Fin. Auth. Rev., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC 06/11 @ 100 5,021,500
San Diego Unified Sch. Dist., Election 1998, Ser. D, FGIC,
AAA 8,000 5.00%, 7/01/27 ............................................................ 07/12 @ 100 8,067,760
AAA 8,665 5.25%, 7/01/23 ............................................................ 07/12 @ 101 9,066,016
AAA 30,000 San Joaquin Hills Trans. Corridor Agcy., Toll Road Rev., Ser. A, Zero
Coupon, 1/15/34, MBIA ..................................................... No Opt. Call 5,522,100
Tustin Unified Sch. Dist. Spec. Tax Rev., Cmnty. Facs. Dist. 97-1,
AAA 5,000 Ser. A, 5.00%, 9/01/38, FSA ............................................... 09/12 @ 100 5,005,400
NR 2,000 Ser. B, 5.60%, 9/01/29 .................................................... 09/12 @ 101 1,976,660
------------
TOTAL LONG-TERM INVESTMENTS (COST $81,579,816) .............................. 82,396,338
SHORT-TERM INVESTMENTS**--41.6%
ALABAMA--8.9%
VMIG1 5,000 Homewood Edl. Bldg. Auth. Rev., Edl. Facs. Samford Univ., 1.80%,
9/03/02, FRDD ............................................................. N/A 5,000,000
A1+ 5,000 Jefferson Cnty., GO, Ser. B, 1.80%, 9/03/02, FRDD ........................... N/A 5,000,000
------------
10,000,000
------------
CALIFORNIA--8.2%
Orange Cnty. Sanitation Dists., COP,
A1+ 3,200 1.85%, 9/03/02, FRDD ...................................................... N/A 3,200,000
A1+ 4,000 Ser. B, 1.85%, 9/03/02, FRDD .............................................. N/A 4,000,000
A1 2,000 Orange Cnty. Spec. Fin. Auth., Teeter Plan Rev., Ser. D, 1.30%, 9/04/02,
FRWD ...................................................................... N/A 2,000,000
------------
9,200,000
------------
GEORGIA--1.8%
A1+ 2,000 Mun. Elec. Auth. Rev., Proj. One, Ser. C, 1.30%, 9/04/02, FRWD .............. N/A 2,000,000
------------
ILLINOIS--1.3%
A1+ 1,500 Chicago O'Hare Intl. Arpt. Rev., Gen. Arpt. 2nd Lien, Ser. A, 1.28%,
9/04/02, FRWD ............................................................. N/A 1,500,000
------------
MASSACHUSETTS--7.5%
Massachusetts St. Hlth. & Edl. Facs. Auth. Rev., Boston Univ., FRWD,
VMIG1 4,200 Ser. Q-1, 1.35%, 9/05/02 .................................................. N/A 4,200,000
VMIG1 4,200 Ser. Q-2, 1.27%, 9/05/02 .................................................. N/A 4,200,000
------------
8,400,000
------------
MICHIGAN--1.8%
A1+ 2,000 Michigan St. Univ. Rev., Ser. A-2, 1.30%, 9/04/02, FRWD ..................... N/A 2,000,000
------------
MONTANA--0.9%
A1+ 1,000 Forsyth, PCR, Pacificorp Proj., 1.90%, 9/03/02, FRDD ........................ N/A 1,000,000
------------
NEW JERSEY--3.5%
A1+ 4,000 New Jersey St. Edl. Facs. Auth. Rev., Princeton Univ., Ser. B, 1.60%,
9/03/02, FRDD ............................................................. N/A 4,000,000
------------

See Notes to Financial Statements.

NEW YORK--3.5%
VMIG1 $ 4,000 Orange Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Horton Med. Ctr., Ser. A, 1.35%,
9/05/02, FRWD ................................................................ N/A $ 4,000,000
------------
NORTH CAROLINA--2.2%
VMIG1 2,485 No. Carolina Med. Care Comn. Hosp. Rev., Duke Univ. Hosp. Proj., Ser. C, 1.25%,
9/03/02, FRWD ................................................................ N/A 2,485,000
------------
OREGON--2.0%
A1+ 2,300 Oregon St., GO, Ser. 73E, 1.25%, 9/04/02, FRWD ................................. N/A 2,300,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $46,885,000) ................................ 46,885,000
------------
Total Investments--114.8% (cost $128,464,816) .................................. 129,281,338
Liabilities in excess of other assets--(14.8)% ................................. (16,705,013)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................. $112,576,325
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of these
investments are considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation FRWD -- Floating Rate Weekly Demand
COP -- Certificate of Participation FSA -- Financial Security Assurance
ETM -- Escrowed to Maturity GO -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
FRDD -- Floating Rate Daily Demand PCR -- Pollution Control Revenue
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK FLORIDA MUNICIPAL BOND TRUST

LONG-TERM INVESTMENTS--158.3%
FLORIDA--151.1%
AAA $ 1,250 Bay Cnty. Sales Tax Rev., 5.125%, 9/01/32, AMBAC ............................. 09/12 @ 100 $ 1,263,538
NR 3,000++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 ................... 10/14 @ 100 3,070,389
AAA 3,150 Florida Mun. Loan Council Rev., Ser. A, 5.125%, 5/01/32, MBIA ................ 05/12 @ 101 3,185,879
Florida St. Brd. Ed. Cap. Outlay Pub. Ed., GO,
AAA 3,000 Ser. F, 5.00%, 6/01/25, MBIA ............................................... 06/12 @ 101 3,015,870
AAA 1,105 Ser. G, 5.00%, 6/01/31, FGIC ............................................... 06/12 @ 101 1,106,271
AAA 3,100 Greater Orlando Aviation Auth., Orlando Fla. Arpt. Facs. Rev., Ser. A,
5.125%, 10/01/32, FSA ...................................................... 10/12 @ 100 3,136,177
A3 4,900 Highlands Cnty. Hlth. Facs. Auth. Rev., Hosp. Adventist/Sunbelt, Ser. A,
6.00%, 11/15/31 ............................................................ 11/11 @ 101 5,128,193
A1 4,000 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%,
10/01/23 ................................................................... 10/12 @ 100 4,076,680
Aaa 3,500 Jacksonville Econ. Dev. Comm. Hlth. Facs. Rev., Mayo Clinic, Ser. B,
5.50%, 11/15/36 ............................................................ 11/11 @ 101 3,570,455
AAA 3,250 Jacksonville Gtd. Entitlement Rev., 5.00%, 10/01/32, FGIC .................... 10/12 @ 100 3,253,477
Aa2 5,000 Jea Elec. Sys. Rev., Ser. A, 5.50%, 10/01/41 ................................. 10/07 @ 100 5,070,800
AAA 5,425 Jea Wtr. & Swr. Sys. Rev., Ser. A, 5.375%, 10/01/30, MBIA .................... 04/07 @ 100 5,498,020
A1 3,000 Lakeland Hosp. Sys. Rev., Lakeland Regl. Hlth. Sys., 5.50%, 11/15/32 ......... 11/12 @ 101 2,974,740
Miami Dade Cnty. Spec. Oblig. Rev., MBIA,
AAA 5,500 Ser. A, Zero Coupon, 10/01/26 ........................................... 04/08 @ 37.301 1,451,230
AAA 10,000 Ser. B, Zero Coupon, 10/01/30 ........................................... 04/08 @ 29.688 2,094,100
AAA 5,410 Miami Dade Cnty. Spec. Oblig., Ser. B, Zero Coupon, 10/01/32, MBIA ........ 04/08 @ 26.494 1,008,424
A2 5,000 Orange Cnty. Hlth. Facs. Auth. Rev., Orlando Regl. Hlth. Care, 5.75%,
12/01/32 ................................................................... 12/12 @ 100 5,056,500
AAA 3,250 Orange Cnty. Sch. Brd., COP, Ser. A, 5.00%, 8/01/27, MBIA .................... 08/12 @ 100 3,255,850
AAA 3,100 Orange Cnty. Tourist Dev. Tax Rev., 5.125%, 10/01/30, AMBAC .................. 04/12 @ 100 3,134,596
AAA 3,105 Osceola Cnty. Tourist Dev. Tax Rev., Ser. A, 5.00%, 10/01/32, FGIC ........... 10/12 @ 100 3,108,322
AAA 3,630 Palm Bay Util. Rev., Zero Coupon, 10/01/28, FGIC ............................ No Opt. Call 916,539
AAA 3,000 Palm Beach Cnty. Sch. Brd., COP, Ser. C, 5.00%, 8/01/27, FSA ................. 08/12 @ 100 3,005,400
AAA 5,000 Port St. Lucie Util. Rev., 5.125%, 9/01/31, MBIA ............................. 09/11 @ 100 5,049,350
A1 2,000 So. Broward Hosp. Dist. Rev., 5.60%, 5/01/27 ................................. 05/12 @ 101 2,035,060
------------
74,465,860
------------
PUERTO RICO--7.2%
A- 3,500 Puerto Rico Pub. Bldgs. Auth. Rev., Gov't. Facs., Ser. D, 5.25%, 7/01/36 ..... 07/12 @ 100 3,540,915
------------
TOTAL INVESTMENTS--158.3% (COST $75,620,080) ................................. 78,006,775
Other assets in excess of liabilities--2.1% .................................. 1,054,809
Preferred shares at redemption value, including dividends payable--(60.4)% ... (29,777,690)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 49,283,894
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 6.2% of its net assets in securities restricted as to resale.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation GO -- General Obligation
COP -- Certificate of Participation MBIA -- Municipal Bond Insurance Association
FGIC -- Financial Guaranty Insurance Company PCR -- Pollution Control Revenue
FSA -- Financial Security Assurance
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK MARYLAND MUNICIPAL BOND TRUST

LONG-TERM INVESTMENTS--159.2%
MARYLAND--133.2%
A3 $ 2,870 Anne Arundel Cnty. Eco. Dev. Rev., Cmnty. Coll. Proj., 5.25%, 9/01/28 ........ 09/12 @ 102 $ 2,907,224
Baltimore Cnty., GO,
AAA 2,000 Met. Dist.- 67th Issue, 5.00%, 6/01/22 ..................................... 06/11 @ 101 2,050,900
AAA 2,100 Met. Dist.- 68th Issue, 5.00%, 8/01/28 ..................................... 08/12 @ 100 2,023,920
Baltimore Proj. Rev., Ser. A, FGIC, Wastewtr. Proj.,
AAA 2,000 5.125%, 7/01/42 ............................................................ 07/12 @ 100 2,010,400
AAA 3,500 5.20%, 7/01/32 ............................................................. 07/12 @ 100 3,568,250
NR 2,000++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 ................... 10/14 @ 100 2,046,926
Aa2 2,885 Maryland St. Cmnty. Dev. Admin. Dept. Hsg. & Cmnty. Dev. Rev., Sngl. Fam.
Prog., Ser. 2, 6.55%, 4/01/26 .............................................. 04/05 @ 102 2,998,756
Aa2 2,000 Maryland St. Econ. Dev. Corp. Lease Rev., Dept. Transp. Headquarters,
4.75%, 6/01/22 ........................................................... 06/12 @ 100.5 1,994,820
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev.,
A 2,000 Brd. of Child Care, 5.375%, 7/01/32 ........................................ 07/12 @ 100 2,030,160
Baa1 1,990 Carroll Cnty. Gen. Hosp., 6.00%, 7/01/37 ................................... 07/12 @ 100 2,045,859
Aa2 2,000 Johns Hopkins Univ., Ser. B, 5.00%, 7/01/41 ................................ 07/11 @ 100 1,967,020
A2 2,000 Loyola Coll. Issue, 5.00%, 10/01/39 ........................................ 10/09 @ 101 1,984,060
Baa1 2,000 Univ. of Maryland Med. Sys., 5.25%, 7/01/34 ................................ 07/11 @ 100 2,000,440
A2 1,905 Maryland St. Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat'l. Aquarium Baltimore
Fac., Ser. B, 5.20%, 11/01/26 .............................................. 11/12 @ 100 1,921,954
AAA 2,000 Maryland St. Transp. Auth. Arpt. Pkg. Rev., Baltimore/Wash. Intl. Arpt.,
Ser. B, 5.125%, 3/01/24, AMBAC ............................................. 03/12 @ 101 2,020,880
Montgomery Cnty. Lease Rev., Metrorail Garage Proj.,
Aa2 500 5.00%, 6/01/23 ............................................................. 06/12 @ 100 507,045
Aa2 1,435 5.00%, 6/01/24 ............................................................. 06/12 @ 100 1,449,651
Aa3 2,000 Montgomery Cnty. Econ. Dev. Rev., Trinity Hlth. Credit Grp., 5.25%, 12/01/31 . 12/11 @ 100 2,037,420
St. Marys Coll. Rev., Academic & Auxil. Fees, Ser. A, AMBAC,
AAA 1,000 5.00%, 9/01/27 ............................................................. 09/12 @ 101 1,008,860
AAA 1,000 5.00%, 9/01/32 ............................................................. 09/12 @ 101 1,006,320
------------
39,580,865
------------
PUERTO RICO--26.0%
A 2,000 Puerto Rico Comnwlth. Hwy. & Trans. Auth., Trans. Rev., Ser. D, 5.25%,
7/01/38 .................................................................... 07/12 @ 100 2,024,940
AAA 2,060 Puerto Rico Elec. Pwr. Auth. Pwr. Rev., Ser. HH, 5.25%, 7/01/29, FSA ......... 07/10 @ 101 2,124,808
Puerto Rico Pub. Bldgs. Auth. Rev., Gov't. Facs., Ser. D,
A- 2,000 5.25%, 7/01/36 ............................................................. 07/12 @ 100 2,023,380
A- 1,500 5.375%, 7/01/33 ............................................................ 07/12 @ 100 1,541,250
------------
7,714,378
------------
TOTAL INVESTMENTS--159.2% (COST $46,146,245) ................................. 47,295,243
Other assets in excess of liabilities--1.4% .................................. 410,989
Preferred shares at redemption value, including dividends payable--(60.6)% ... (18,001,282)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 29,704,950
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 6.9% of its net assets in securities restricted as to resale.

-------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance
FGIC -- Financial Guaranty Insurance Company GO -- General Obligation
-------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST

LONG-TERM INVESTMENTS--158.5%
NEW JERSEY--116.3%
NR $2,000++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 .................. 10/14 @ 100 $ 2,046,926
New Jersey Econ. Dev. Auth.,
Baa3 4,750 Econ. Dev. Rev., Kapkowski Road Landfill Proj., 6.50%, 4/01/28 ............ No Opt. Call 5,212,032
B+ 2,500 Spec. Facs. Rev., Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........ 11/10 @ 101 2,038,000
New Jersey Econ. Dev. Auth. Rev., Ser. A,
BBB- 2,000 Fellowship Vlg., 5.50%, 1/01/25 ........................................... 01/08 @ 102 1,863,380
Aaa 1,800 Victoria Hlth., 5.20%, 12/20/36 ........................................... 12/11 @ 103 1,836,432
New Jersey Hlth. Care Facs. Fin. Auth. Rev.,
A3 2,000 Atlantic City Med. Ctr., 5.75%, 7/01/25 ................................... 07/12 @ 100 2,081,740
AA 2,275 Good Shepherd, 5.20%, 7/01/31, RAA ........................................ 07/11 @ 100 2,300,889
A3 2,000 Kennedy Hlth. Sys., 5.625%, 7/01/31 ....................................... 07/11 @ 100 2,035,920
Baa1 2,500 So. Jersey Hosp., 6.00%, 7/01/32 .......................................... 07/12 @ 100 2,539,925
AAA 2,250 New Jersey St. Hsg. & Mtg. Fin. Agncy., Mult. Fam. Hsg. Rev., Ser. A, 5.65%,
5/01/40, AMBAC/FHA ....................................................... 11/07 @ 101.5 2,330,753
Port Auth. New York & New Jersey Rev.,
AAA 1,500 Cons. 125th Ser., 5.00%, 4/15/32, FSA ..................................... 04/12 @ 101 1,510,350
AAA 2,250 Cons. 126th Ser., 5.25%, 5/15/37, FGIC .................................... 05/12 @ 101 2,266,583
A1 5,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 .............................. 06/12 @ 100 4,878,200
AAA 2,600 Univ. Medicine & Dentistry Rev., Ser. A, 5.00%, 12/01/31, AMBAC ............. 12/12 @ 100 2,615,210
Vineland, GO, MBIA,
Aaa 1,225 5.30%, 5/15/29 ............................................................ 05/10 @ 101 1,249,892
Aaa 1,500 5.375%, 5/15/32 ........................................................... 05/10 @ 101 1,540,470
------------
38,346,702
------------
PUERTO RICO--42.2%
A- 1,750 Puerto Rico Comnwlth., GO, Ser. A, 5.375%, 7/01/28 .......................... 07/11 @ 100 1,810,445
A 4,900 Puerto Rico Comnwlth. Hwy. & Trans. Auth., Trans. Rev.,
Ser. D, 5.25%, 7/01/38 .................................................... 07/12 @ 100 4,961,103
A- 2,250 Puerto Rico Elec. Pwr. Auth., Pwr. Rev., Ser. II, 5.25%, 7/01/31 ............ 07/12 @ 101 2,287,935
Puerto Rico Pub. Bldgs. Auth. Rev., Gov't. Facs., Ser. D,
A- 2,300 5.25%, 7/01/27 ............................................................ 07/12 @ 100 2,344,735
A- 2,500 5.25%, 7/01/36 ............................................................ 07/12 @ 100 2,529,225
------------
13,933,443
------------
TOTAL INVESTMENTS--158.5% (COST $51,441,509) ................................ 52,280,145
Other assets in excess of liabilities--2.8% ................................. 928,768
Preferred shares at redemption value, including dividends payable--(61.3)% .. (20,228,045)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $ 32,980,868
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 6.2% of its net assets in securities restricted as to resale.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation GO -- General Obligation
FHA -- Federal Housing Administration MBIA -- Municipal Bond Insurance Association
FGIC -- Financial Guaranty Insurance Company RAA -- Radian Asset Assurance
FSA -- Financial Security Assurance
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK NEW YORK MUNICIPAL BOND TRUST

LONG-TERM INVESTMENTS--156.8%
NEW YORK--129.8%
NR $ 2,500++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 ................... 10/14 @ 100 $ 2,558,658
Aa2 2,000 Dutchess Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Vassar Coll. Proj., 5.35%,
9/01/40 .................................................................... 08/11 @ 101 2,048,840
A2 3,000 Met. Transp. Auth. Rev., Ser. A, 5.125%, 11/15/31 ............................ 11/12 @ 100 3,011,400
A2 3,000 New York, GO, Ser. D, 5.375%, 6/01/32 ........................................ 06/12 @ 100 3,047,190
A3 1,100 New York City Hlth. & Hosp. Corp. Rev., Hlth. Sys., Ser. A, 5.375%, 2/15/26 .. 02/12 @ 100 1,108,976
Aa2 2,500 New York City Hsg. Dev. Corp., Mult. Fam. Hsg. Rev., Ser. A, 5.50%, 11/01/34 05/12 @ 100 2,529,675
AAA 2,500 New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. A, 5.25%,
6/15/33, FGIC .............................................................. 06/11 @ 100 2,545,975
A1 5,000 New York Cntys. Tobacco Trust II, Tobacco Settlement Rev., 5.625%, 6/01/35 ... 06/11 @ 101 4,940,850
New York St. Dorm. Auth. Rev.,
AA- 2,750 City Univ. Sys., Ser. A, 5.25%, 7/01/31 .................................... 07/11 @ 100 2,794,907
AAA 2,500 Insured Iona Coll., 5.125%, 7/01/32, XLCA .................................. 07/12 @ 100 2,511,075
A3 3,000 Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30 ............................... 07/11 @ 101 3,035,430
AAA 2,500 Willow Towers Inc. Proj., 5.40%, 2/01/34 ................................... 08/12 @ 101 2,568,425
AAA 2,750 New York St. Environ. Facs. Rev., New York City Mun. Wtr. Proj., Ser. D,
5.125%, 6/15/31 ............................................................ 06/12 @ 100 2,783,302
Aa1 3,000 New York St. Mtg. Agcy. Rev., Ser. 101, 5.40%, 4/01/32 ....................... 10/11 @ 100 3,032,010
AA 5,000 New York St. Urban Dev. Corp. Rev., Personal Inc. Tax St. Facs., Ser. A,
5.25%, 3/15/32 ............................................................. 03/12 @ 100 5,106,500
AAA 2,750 Port Auth. New York & New Jersey Rev., Cons. 126th Ser., 5.25%, 5/15/37, FGIC 05/12 @ 101 2,770,268
B3 2,600 Port Auth. New York & New Jersey Spec. Oblig. Rev., Cont'l./Eastern Proj.
LaGuardia, 9.125%, 12/01/15 ................................................ 10/02 @ 101 2,605,460
Aa2 3,000 Tsasc Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 .................. 07/12 @ 100 2,996,670
------------
51,995,611
------------

PUERTO RICO--27.0%
A- 3,000 Puerto Rico Comnwlth., GO, Ser. A, 5.125%, 7/01/31 ........................... 07/11 @ 100 3,016,140
A 3,000 Puerto Rico Comnwlth. Hwy. & Trans. Auth., Trans. Rev., Ser. D, 5.25%,
7/01/38 .................................................................... 07/12 @ 100 3,037,410
A- 2,000 Puerto Rico Elec. Pwr. Auth., Pwr. Rev., Ser. II, 5.25%, 7/01/31 ............. 07/12 @ 101 2,033,720
A- 2,700 Puerto Rico Pub. Bldgs. Auth. Rev., Gov't. Facs., Ser. D, 5.25%, 7/01/27 ..... 07/12 @ 100 2,752,515
------------
10,839,785
------------
TOTAL INVESTMENTS--156.8% (COST $61,223,582) ................................. 62,835,396
Other assets in excess of liabilities--3.6% .................................. 1,430,101
Preferred shares at redemption value, including dividends payable--(60.4)% ... (24,203,446)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 40,062,051
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 6.4% of its net assets in securities restricted as to resale.

--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

FGIC -- Financial Guaranty Insurance Company XLCA -- XL Capital Assurance
GO -- General Obligation
--------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II

LONG-TERM INVESTMENTS--86.9%
NEW YORK--81.2%
Met. Transp. Auth., Ser. A,
AA- $ 5,000 Dedicated Tax Fnd. Rev., 5.00%, 11/15/30 ................................... 11/12 @ 100 $ 4,956,000
AA- 5,000 Svc. Contract Rev., 5.125%, 1/01/29 ........................................ 07/12 @ 100 5,010,600
AAA 5,000 Met. Transp. Auth. Rev., Ser. A, 5.25%, 11/15/31, FGIC ....................... 11/12 @ 100 5,100,250
Aa2 5,000 New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. A, 5.125%,
6/15/34 .................................................................... 06/12 @ 100 5,002,900
AAA 5,000 New York City Trans. Auth. Met. Transp. Auth., Triborough Bridge & Tunl. Auth.,
COP, Ser. A, 5.25%, 1/01/29, AMBAC ......................................... 01/10 @ 101 5,081,050
Aa2 5,000 New York City Trans. Fin. Auth. Rev., Future Tax Secured, Ser. B, 5.00%,
11/01/27 ................................................................... 11/12 @ 100 4,986,300
AA- 5,000 New York St. Dorm. Auth. Lease Rev., St. Univ. Dorm. Facs., 5.00%, 7/01/32 ... 07/12 @ 100 4,970,350
New York St. Dorm. Auth. Rev.,
AAA 2,425 New Sch. Univ., 5.00%, 7/01/31, MBIA ....................................... 07/11 @ 100 2,421,799
AAA 3,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC .............................. 07/11 @ 100 2,970,630
AAA 2,000 Winthrop Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC ................. 07/11 @ 101 2,026,480
B3 3,500 Port Auth. New York & New Jersey Spec. Oblig. Rev., Cont'l./Eastern Proj.
LaGuardia, 9.125%, 12/01/15 ................................................ 10/02 @ 101 3,507,350
AAA 2,500 Triborough Bridge & Tunl. Auth. Rev., Ser. A, 5.00%, 1/01/32 ................. 01/12 @ 100 2,492,875
Aa2 8,500 Tsasc Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 .................. 07/12 @ 100 8,490,565
------------
57,017,149
------------
PUERTO RICO--5.7%
A- 4,000 Puerto Rico Comnwlth., GO, Ser. A, 5.125%, 7/01/31 ........................... 07/11 @ 100 4,021,520
------------
TOTAL LONG-TERM INVESTMENTS (COST $60,327,150) ............................... 61,038,669
------------
SHORT-TERM INVESTMENTS**--19.2%
GEORGIA--2.9%
A1+ 2,000 Mun. Elec. Auth. Rev., Proj. One, Ser. C, 1.30%, 9/04/02, FRWD ............... N/A 2,000,000
------------
MICHIGAN--1.4%
A1+ 1,000 Michigan St. Univ. Rev., Ser. A-2, 1.30%, 9/04/02, FRWD ...................... N/A 1,000,000
------------
NEW YORK--5.0%
New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev.,
A1+ 2,000 Ser. F-1, 1.85%, 9/03/02, FRDD ............................................. N/A 2,000,000
A1+ 1,500 Ser. G, 1.85%, 9/03/02, FRDD ............................................... N/A 1,500,000
------------
3,500,000
------------
TENNESSEE--2.8%
VMIG1 2,000 Montgomery Cnty. Pub. Bldg. Auth., Pooled Fin. Rev., 1.85%, 9/03/02, FRDD .... N/A 2,000,000
------------
MONEY MARKET FUNDS--7.1%
NR 3,000 AIM Tax Exempt Cash Fund ..................................................... N/A 3,000,000
NR 2,000 SSgA Tax Free Money Market Fund .............................................. N/A 2,000,000
------------
5,000,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $13,500,000) .............................. 13,500,000
------------
TOTAL INVESTMENTS--106.1% (COST $73,827,150) ................................. 74,538,669
Liabilities in excess of other assets--(6.1)% ................................ (4,262,952)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 70,275,717
============

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

AMBAC -- American Municipal Bond Assurance Corporation FRWD -- Floating Rate Weekly Demand
COP -- Certificate of Participation GO -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
FRDD -- Floating Rate Daily Demand
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

PORTFOLIO OF INVESTMENTS AUGUST 31, 2002

BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

LONG-TERM INVESTMENTS--158.4%
DISTRICT OF COLUMBIA--6.7%
AAA $ 1,500 Met. Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC ............ 10/12 @ 100 $ 1,512,090
------------
VIRGINIA--136.0%
A2 3,000 Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr.
Arlington Hlth. Sys., 5.25%, 7/01/31 ....................................... 07/11 @ 101 3,021,900
AAA 1,500 Arlington Cnty. Pub. Impvt., GO, 5.00%, 2/01/21 .............................. 02/11 @ 100 1,531,095
NR 1,500++ Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 ................... 10/14 @ 100 1,535,195
AAA 1,500 Danville Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr., 5.25%,
10/01/28, AMBAC ............................................................ 1,581,720
NR 1,000 Dulles Town Ctr. Cmnty. Dev. Auth., Spec. Assmt. Tax, Dulles Town Ctr. Proj.,
6.25%, 3/01/26 ............................................................. 03/08 @ 102 998,670
AAA 1,500 Fairfax Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27 ........................... 04/12 @ 100 1,504,860
Aa2 1,000 Hampton, GO, 5.00%, 4/01/20 .................................................. 04/12 @ 101 1,037,940
AAA 1,500 Norfolk Arpt. Auth. Rev., Ser. A, 5.125%, 7/01/31, FGIC ...................... 07/11 @ 100 1,513,395
A 5,000 Pocahontas Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA .. 08/08 @ 45.5 1,301,150
Aa2 1,375 Prince William Cnty. Lease Part. Cert., 5.00%, 12/01/21 ...................... 06/12 @ 100 1,406,199
AAA 1,250 Richmond Met. Auth. Expwy. Rev., 5.25%, 7/15/22, FGIC 1,355,125
AAA 3,000 Richmond Pub. Util. Rev., 5.00%, 1/15/33, FSA ................................ 01/12 @ 100 3,009,420
Aa3 1,500 Virginia Beach Dev. Auth., Pub. Fac. Rev., Town Ctr. Proj. Phase I, Ser. A,
5.00%, 8/01/22 ............................................................. 08/12 @ 100 1,523,850
Virginia Coll. Bldg. Auth., Edl. Facs. Rev., MBIA, Washington & Lee Univ. Proj.,
AAA 500 5.25%, 1/01/26 ............................................................. 534,360
AAA 1,000 5.25%, 1/01/31 ............................................................. 1,069,580
Aa1 1,500 Virginia Port Auth. Comnwlth. Port Fund Rev., 5.125%, 7/01/22 ................ 07/12 @ 101 1,513,260
AAA 3,000 Virginia St. Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36,
MBIA ....................................................................... 07/11 @ 100 3,040,770
Virginia St. Res. Auth. Infrastructure Rev., Ser. A,
Aa2 1,000 5.00%, 5/01/22 ............................................................. 05/11 @ 101 1,015,540
Aa2 635 5.125%, 5/01/27 ............................................................ 05/11 @ 101 643,096
AA 1,500 Virginia St. Res. Auth. Wtr. & Swr. Sys. Rev., Frederick Cnty. Sanitation
Auth. Proj., 5.20%, 10/01/28 ............................................... 10/10 @ 100 1,523,775
------------
30,660,900
------------
PUERTO RICO--15.7%
A 1,500 Puerto Rico Comnwlth. Hwy. & Trans. Auth., Trans. Rev., Ser. D, 5.25%,
7/01/38 .................................................................... 07/12 @ 100 1,518,705
A- 2,000 Puerto Rico Pub. Bldgs. Auth. Rev., Gov't. Facs., Ser. D, 5.25%, 7/01/36 ..... 07/12 @ 100 2,023,380
------------
3,542,085
------------
TOTAL INVESTMENTS--158.4% (COST $34,689,492) ................................. 35,715,075
Other assets in excess of liabilities--1.6% .................................. 355,469
Preferred shares at redemption value, including dividends payable--(60.0)% ... (13,525,963)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 22,544,581
============

----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of August 31, 2002, the
Trust held 6.8% of its net assets in securities restricted as to resale.

----------------------------------------------------------------------------------------------------
KEY TO ABBREVIATIONS

ACA -- American Capital Access FSA -- Financial Security Assurance
AMBAC -- American Municipal Bond Assurance Corporation GO -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
----------------------------------------------------------------------------------------------------

See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2002
--------------------------------------------------------------------------------

CALIFORNIA CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
ASSETS BOND TRUST INCOME TRUST II BOND TRUST INCOME TRUST II
------------ -------------- ------------- ------------

Investments at value(1) ............................ $ 238,640,963 $ 390,986,392 $ 78,850,687 $129,281,338
Cash ............................................... 198,270 404,159 589,156 208,520
Receivable from investments sold ................... 5,172,797 -- -- --
Interest receivable ................................ 3,133,644 3,063,420 882,277 416,279
Other assets ....................................... 8,856 -- 8,454 --
------------ ------------- ------------ ------------
247,154,530 394,453,971 80,330,574 129,906,137
------------ ------------- ------------ ------------

LIABILITIES
Payable to custodian ............................... -- -- -- --
Payable for investments purchased .................. 5,745,960 70,138,427 -- 17,012,553
Dividends payable--common shares ................... 853,112 -- 261,743 --
Investment advisory fee payable (Note 2) ........... 70,952 104,361 23,553 35,975
Deferred Trustees fees ............................. 693 -- 500 --
Other accrued expenses ............................. 720,843 728,349 228,870 281,284
------------ ------------- ------------ ------------
7,391,560 70,971,137 514,666 17,329,812
------------ ------------- ------------ ------------

PREFERRED SHARES AT REDEMPTION VALUE
$.001 par value per share and $25,000 liquidation
value per share, including dividends payable
(Notes 1 & 4)(2) ................................. 90,510,410 -- 29,981,653 --
------------ ------------- ------------ ------------

NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS .............................. $ 149,252,560 $ 323,482,834 $ 49,834,255 $112,576,325
============ ============= ============ ============
Composition of Net Assets Applicable to
Common Shareholders:
Par value (Note 4) ............................... $ 10,111 $ 22,458 $ 3,350 $ 7,808
Paid-in capital in excess of par ................. 143,274,599 321,030,293 47,476,184 111,623,193
Undistributed (distributions in excess of)
net investment income .......................... 297,813 784,425 62,403 128,802
Accumulated net realized gain (loss) ............. 367,062 -- 101,627 --
Net unrealized appreciation ...................... 5,302,975 1,645,658 2,190,691 816,522
------------ ------------- ------------ ------------
Net assets applicable to common shareholders,
August 31, 2002 .................................. $ 149,252,560 $ 323,482,834 $ 49,834,255 $112,576,325
============ ============= ============ ============

Net asset value per common share of beneficial
interest issued and outstanding(3) ................. $14.76 $14.40 $14.87 $14.42
====== ====== ====== ======

(1)Investments at cost ............................. $ 233,337,988 $ 389,340,734 $ 76,659,996 $128,464,816
(2)Preferred shares outstanding .................... 3,620 -- 1,199 --
(3)Common shares outstanding ....................... 10,110,959 22,458,028 3,350,310 7,808,028

See Notes to Financial Statements.

FLORIDA MARYLAND NEW JERSEY NEW YORK NEW YORK VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST BOND TRUST BOND TRUST BOND TRUST BOND TRUST BOND TRUST
------------ ------------ ------------ ------------ ------------ ------------

$ 78,006,775 $ 47,295,243 $ 52,280,145 $ 62,835,396 $ 74,538,669 $ 35,715,075
412,807 -- 637,119 1,081,193 383,647 28,622
-- 101,961 -- -- -- 103,309
1,134,886 646,355 608,170 761,518 466,891 411,430
8,329 595 607 8,315 -- 569
------------ ------------ ------------ ------------ ------------ ------------
79,562,797 48,044,154 53,526,041 64,686,422 75,389,207 36,259,005
------------ ------------ ------------ ------------ ------------ ------------

-- 67,556 -- -- -- --
-- -- -- -- 4,900,900 --
252,254 140,901 175,329 205,951 -- 106,857
23,373 14,090 15,744 18,957 21,976 10,652
501 500 502 499 -- 499
225,085 114,875 125,553 195,518 190,614 70,453
------------ ------------ ------------ ------------ ------------ ------------
501,213 337,922 317,128 420,925 5,113,490 118,461
------------ ------------ ------------ ------------ ------------ ------------

29,777,690 18,001,282 20,228,045 24,203,446 -- 13,525,963
------------ ------------ ------------ ------------ ------------ ------------

$ 49,283,894 $ 29,704,950 $ 32,980,868 $ 40,062,051 $ 70,275,717 $ 22,544,581
============ ============ ============ ============ ============ ============

$ 3,308 $ 2,013 $ 2,262 $ 2,701 $ 4,858 $ 1,513
46,876,055 28,523,484 32,057,965 38,273,921 69,455,893 21,440,665

17,836 32,562 (6,638) (2,601) 103,447 52,949
-- (2,107) 88,643 176,216 -- 23,871
2,386,695 1,148,998 838,636 1,611,814 711,519 1,025,583
------------ ------------ ------------ ------------ ------------ ------------

$ 49,283,894 $ 29,704,950 $ 32,980,868 $ 40,062,051 $ 70,275,717 $ 22,544,581
============ ============ ============ ============ ============ ============

$14.90 $14.76 $14.58 $14.83 $14.47 $14.90
====== ====== ====== ====== ====== ======

$ 75,620,080 $ 46,146,245 $ 51,441,509 $ 61,223,582 $ 73,827,150 $ 34,689,492
1,191 720 809 968 -- 541
3,308,251 2,012,881 2,262,306 2,700,991 4,858,028 1,513,024

STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------

FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 30, 2002(1) JULY 30, 2002(2) APRIL 30, 2002(1) JULY 30, 2002(2)
THROUGH THROUGH THROUGH THROUGH
AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002
--------------- --------------- ---------------- ----------------
CALIFORNIA CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
NET INVESTMENT INCOME BOND TRUST INCOME TRUST II BOND TRUST INCOME TRUST II
----------- ----------- ----------- -----------

Interest Income (Note 1) ......................... $ 3,551,490 $ 965,359 $ 1,105,631 $ 229,382
----------- ----------- ----------- -----------
EXPENSES
Investment advisory .............................. 444,125 152,741 146,284 52,657
Independent accountants .......................... 40,671 24,000 27,236 24,000
Auction Agent .................................... 51,391 2,305 17,902 769
Reports to shareholders .......................... 41,786 12,000 15,367 12,000
Organization ..................................... 10,000 15,000 10,000 15,000
Transfer agent ................................... 10,192 3,300 7,520 2,260
Registration ..................................... 7,643 2,848 7,520 2,034
Trustees ......................................... 5,538 3,666 4,111 1,655
Legal ............................................ 5,096 2,260 1,671 1,085
Custodian ........................................ 3,397 271 1,125 271
Insurance ........................................ 849 226 501 136
Miscellaneous .................................... 23,599 3,974 7,859 3,074
----------- ----------- ----------- -----------
Total expenses ................................. 644,287 222,591 247,096 114,941
Less fees waived by Advisor (Note 2) ............. (204,981) (41,657) (67,516) (14,361)
----------- ----------- ----------- -----------
Net expenses ..................................... 439,306 180,934 179,580 100,580
----------- ----------- ----------- -----------
Net investment income .............................. 3,112,184 784,425 926,051 128,802
----------- ----------- ----------- -----------

REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net realized gain (loss) on investments ............ 367,062 -- 101,627 --
Net change in unrealized appreciation on investments 5,302,975 1,645,658 2,190,691 816,522
----------- ----------- ----------- -----------
Net gain on investments ............................ 5,670,037 1,645,658 2,292,318 816,522
----------- ----------- ----------- -----------

DIVIDENDS TO PREFERRED SHAREHOLDERS FROM
NET INVESTMENT INCOME .............................. (257,276) -- (79,291) --
----------- ----------- ----------- -----------

NET INCREASE IN NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS RESULTING FROM
OPERATIONS ......................................... $ 8,524,945 $ 2,430,083 $ 3,139,078 $ 945,324
=========== =========== =========== ===========

----------
(1) Commencement of investment operations for the Bond Trusts (Note 1).
(2) Commencement of investment operations for the Income IITrusts (Note 1).

See Notes to Financial Statements.

FOR THE PERIOD FOR THE PERIOD
JULY 30, 2002(2) APRIL 30, 2002(1)
THROUGH THROUGH
FOR THE PERIOD APRIL 30, 2002(1) THROUGH AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002
---------------------------------------------------------------------------- --------------- -------------
FLORIDA MARYLAND NEW JERSEY NEW YORK NEW YORK VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST BOND TRUST BOND TRUST BOND TRUST INCOME TRUST II BOND TRUST
------------- ------------- ------------- ------------- --------------- -------------

$ 1,029,197 $ 613,700 $ 690,632 $ 824,837 $ 186,949 $ 493,679
------------ ------------ ------------ ------------ ------------ ------------

144,686 87,170 97,897 117,932 32,159 65,868
28,314 13,058 16,370 18,058 24,000 6,225
17,830 11,450 12,651 14,801 769 9,025
12,570 6,454 7,473 9,852 12,000 5,069
10,000 10,000 10,000 10,000 15,000 10,000
7,643 7,643 7,643 7,643 1,944 5,946
7,643 611 611 7,643 2,034 611
4,179 4,179 4,179 4,179 1,112 4,121
1,699 1,699 1,699 1,699 904 1,699
1,125 1,125 1,125 1,125 271 1,125
510 510 510 510 90 510
7,987 3,231 7,989 6,288 1,990 1,191
------------ ------------ ------------ ------------ ------------ ------------
244,186 147,130 168,147 199,730 92,273 111,390
(66,778) (40,232) (45,183) (54,430) (8,771) (30,401)
------------ ------------ ------------ ------------ ------------ ------------
177,408 106,898 122,964 145,300 83,502 80,989
------------ ------------ ------------ ------------ ------------ ------------
851,789 506,802 567,668 679,537 103,447 412,690
------------ ------------ ------------ ------------ ------------ ------------

-- (2,107) 88,643 176,216 -- 23,871
2,386,695 1,148,998 838,636 1,611,814 711,519 1,025,583
------------ ------------ ------------ ------------ ------------ ------------
2,386,695 1,146,891 927,279 1,788,030 711,519 1,049,454
------------ ------------ ------------ ------------ ------------ ------------

(77,259) (51,559) (48,851) (64,792) -- (39,206)
------------ ------------ ------------ ------------ ------------ ------------

$ 3,161,225 $ 1,602,134 $ 1,446,096 $ 2,402,775 $ 814,966 $ 1,422,938
============ ============ ============ ============ ============ ============

STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------

FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 30, 2002(1) JULY 30, 2002(2) APRIL 30, 2002(1) JULY 30, 2002(2)
THROUGH THROUGH THROUGH THROUGH
AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002
--------------- --------------- --------------- ---------------
CALIFORNIA CALIFORNIA
INCREASE IN NET ASSETS MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
APPLICABLE TO COMMON SHAREHOLDERS BOND TRUST INCOME TRUST II BOND TRUST INCOME TRUST II
--------------- --------------- --------------- ---------------

OPERATIONS:
Net investment income ............................ $ 3,112,184 $ 784,425 $ 926,051 $ 128,802
Net realized gain (loss) on investments .......... 367,062 -- 101,627 --
Net change in unrealized appreciation ............ 5,302,975 1,645,658 2,190,691 816,522
Dividends to preferred shareholders:
From net investment income ..................... (257,276) -- (79,291) --
In excess of net investment income ............. -- -- -- --
------------ ------------- ------------ ------------
Net increase in net assets resulting
from operations .................................. 8,524,945 2,430,083 3,139,078 945,324
------------ ------------- ------------ ------------

DIVIDENDS TO COMMON SHAREHOLDERS:
From net investment income ....................... (2,557,095) -- (784,357) --
In excess of net investment income ............... -- -- -- --
------------ ------------- ------------ ------------
Total dividends ................................ (2,557,095) -- (784,357) --
------------ ------------- ------------ ------------

CAPITAL SHARE TRANSACTIONS:
Net proceeds from the issuance of common shares .. 132,347,064 306,727,751 42,569,701 105,901,001
Net proceeds from the underwriters' over-
allotment option exercised ..................... 10,743,750 14,325,000 4,798,875 5,730,000
Reinvestment of common dividends ................. 193,896 -- 110,958 --
------------ ------------- ------------ ------------
Net proceeds from capital share transactions 143,284,710 321,052,751 47,479,534 111,631,001
------------ ------------- ------------ ------------
Total increase ............................... 149,252,560 323,482,834 49,834,255 112,576,325
------------ ------------- ------------ ------------

NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS
Beginning of period ................................ -- -- -- --
------------ ------------- ------------ ------------
End of period ...................................... $ 149,252,560 $ 323,482,834 $ 49,834,255 $112,576,325
============ ============= ============ ============
End of period undistributed (distributions in
excess of) net investment income ................. $ 297,813 $ 784,425 $ 62,403 $ 128,802

----------
(1) Commencement of investment operations for the Bond Trusts. This information
includes the initial investment by BlackRock Advisors, Inc. (Note 1)
(2) Commencement of investment operations for the Income II Trusts. This
information includes the initial investment by BlackRock Advisors, Inc.
(Note 1)

See Notes to Financial Statements.

FOR THE PERIOD FOR THE PERIOD
JULY 30, 2002(2) APRIL 30, 2002(1)
THROUGH THROUGH
FOR THE PERIOD APRIL 30, 2002(1) THROUGH AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002
---------------------------------------------------------------------------- --------------- ------------
FLORIDA MARYLAND NEW JERSEY NEW YORK NEW YORK VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST BOND TRUST BOND TRUST BOND TRUST INCOME TRUST II BOND TRUST
--------------- --------------- --------------- --------------- --------------- ------------

$ 851,789 $ 506,802 $ 567,668 $ 679,537 $ 103,447 $ 412,690
-- (2,107) 88,643 176,216 -- 23,871
2,386,695 1,148,998 838,636 1,611,814 711,519 1,025,583

(77,259) (51,559) (48,286) (64,545) -- (39,206)
-- -- (565) (247) -- --
------------ ------------ ------------ ------------ ------------ -----------
3,161,225 1,602,134 1,446,096 2,402,775 814,966 1,422,938
------------ ------------ ------------ ------------ ------------ -----------

(756,694) (422,681) (519,382) (614,992) -- (320,535)
-- -- (6,073) (2,354) -- --
------------ ------------ ------------ ------------ ------------ -----------
(756,694) (422,681) (525,455) (617,346) -- (320,535)
------------ ------------ ------------ ------------ ------------ -----------

41,499,154 25,012,893 28,412,645 34,790,496 64,447,001 19,073,536
5,371,875 3,509,625 3,581,250 3,438,000 5,013,750 2,363,625
8,334 2,979 66,332 48,126 -- 5,017
------------ ------------ ------------ ------------ ------------ -----------
46,879,363 28,525,497 32,060,227 38,276,622 69,460,751 21,442,178
------------ ------------ ------------ ------------ ------------ -----------
49,283,894 29,704,950 32,980,868 40,062,051 70,275,717 22,544,581
------------ ------------ ------------ ------------ ------------ -----------

-- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ -----------
$ 49,283,894 $ 29,704,950 $ 32,980,868 $ 40,062,051 $ 70,275,717 $22,544,581
============ ============ ============ ============ ============ ===========

$ 17,836 $ 32,562 $ (6,638) $ (2,601) $ 103,447 $ 52,949

FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 30, 2002(1) JULY 30, 2002(2) APRIL 30, 2002(1) JULY 30, 2002(2)
THROUGH THROUGH THROUGH THROUGH
AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002
--------------- --------------- --------------- ---------------
CALIFORNIA CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST INCOME TRUST II BOND TRUST INCOME TRUST II
-------------- ------------- ------------ --------------

PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(3) ........... $ 14.33 $ 14.33 $ 14.33 $ 14.33
---------- ---------- --------- -----------
Investment operations:
Net investment income ........................... 0.31 0.03 0.28 0.02
Net realized and unrealized gain on investments . 0.52 0.07 0.63 0.10
Dividends to preferred shareholders from
net investment income ......................... (0.03) -- (0.02) --
---------- ---------- --------- -----------
Net increase from investment operations ........... 0.80 0.10 0.89 0.12
---------- ---------- --------- -----------
Dividends to common shareholders from
net investment income ........................... (0.25) -- (0.23) --
---------- ---------- --------- -----------
Capital charges with respect to issuance of:
Common shares ................................... (0.03) (0.03) (0.03) (0.03)
Preferred shares ................................ (0.09) -- (0.09) --
---------- ---------- --------- -----------
Total capital charges ............................. (0.12) (0.03) (0.12) (0.03)
---------- ---------- --------- -----------
Net asset value, end of period(3) ................. $ 14.76 $ 14.40 $ 14.87 $ 14.42
========== ========== ========= ===========
Market value, end of period(3) .................... $ 14.90 $ 15.00 $ 14.58 $ 15.01
========== ========== ========= ===========
TOTAL INVESTMENT RETURN(4) ........................ 1.07% 0.00% (1.23)% 0.07%
========== ========== ========= ===========

RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5, 6)
Expenses after fee waiver ......................... 0.90% 0.65%(7) 1.12% 1.05%(7)
Expenses before fee waiver ........................ 1.32% 0.80%(7) 1.53% 1.20%(7)
Net investment income after fee waiver and
before preferred share dividends ................ 6.35% 2.82%(7) 5.75% 1.35%(7)
Preferred share dividends ......................... 0.53% 0.00%(7) 0.49% 0.00%(7)
Net investment income available to
common shareholders ............................. 5.82% 2.82%(7) 5.26% 1.35%(7)

SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ... $144,196 $307,165 $47,390 $105,895
Portfolio turnover ................................ 22% 0% 18% 0%
Net assets of common shareholders,
end of period (000) ............................. $149,253 $323,483 $49,834 $112,576
Preferred shares value outstanding (000) .......... $ 90,500 $ -- $29,975 $ --
Asset coverage per preferred share, end of period . $ 66,233 $ -- $66,569 $ --

----------
(1) Commencement of investment operations for the Bond Trusts. This information
includes the initial investments by BlackRock Advisors, Inc. Net asset value
immediately after the closing of the public offering was $14.30. (Note 1)
(2) Commencement of investment operations for the Income IITrusts. This
information includes the initial investments by BlackRock Advisors, Inc. Net
asset value immediately after the closing of the public offering was $14.30.
(Note 1)
(3) Net asset value and market value are published in BARRON'S on Saturdays and
THE WALL STREET JOURNAL on Mondays. 4Total investment return is calculated
assuming a purchase of a common shares at the current market price on the
first day and a sale at the current market price on the last day of the
period reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under each
Trust's dividend reinvestment plan.
(4) Total investment return does not reflect brokerage commissions. Total
investment returns for less than a full year is not annualized. Past
performance is not a guarantee of future results.
(5) Ratios are calculated on the basis of income and expenses applicable to both
the common and preferred shares relative to the average net assets of the
common shareholders.
(6) Annualized
(7) These ratios are not indicative of future expense ratios, due to the short
operating history of the Income II Trusts. Please refer to each Trust's
prospectus for the estimated expense ratios.

The information in these Financial Highlights represents the audited operating
performance for a common share outstanding, total investment return, ratios to
average net assets and other supplemental data for the periods indicated.
This information has been determined based upon financial information provided
in the financial statements and market value data for each Trust's common
shares.

See Notes to Financial Statements

FOR THE PERIOD FOR THE PERIOD
JULY 30, 2002(2) APRIL 30, 2002(1)
THROUGH THROUGH
FOR THE PERIOD APRIL 30, 2002(1) THROUGH AUGUST 31, 2002 AUGUST 31, 2002 AUGUST 31, 2002
------------------------------------------------------------------------- --------------- ----------------
FLORIDA MARYLAND NEW JERSEY NEW YORK NEW YORK VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST BOND TRUST BOND TRUST BOND TRUST INCOME TRUST II BOND TRUST
------------ ------------ ------------ ------------ ------------ ------------

$ 14.33 $ 14.33 $ 14.33 $ 14.33 $ 14.33 $ 14.33
------------ ------------ ------------ ------------ ------------ ------------

0.26 0.25 0.25 0.25 0.02 0.27
0.68 0.53 0.37 0.62 0.15 0.65

(0.02) (0.03) (0.02) (0.02) -- (0.03)
------------ ------------ ------------ ------------ ------------ ------------
0.92 0.75 0.60 0.85 0.17 0.89
------------ ------------ ------------ ------------ ------------ ------------

(0.23) (0.21) (0.23) (0.23) -- (0.21)
------------ ------------ ------------ ------------ ------------ ------------

(0.03) (0.02) (0.03) (0.03) (0.03) (0.02)
(0.09) (0.09) (0.09) (0.09) -- (0.09)
------------ ------------ ------------ ------------ ------------ ------------
(0.12) (0.11) (0.12) (0.12) (0.03) (0.11)
------------ ------------ ------------ ------------ ------------ ------------
$ 14.90 $ 14.76 $ 14.58 $ 14.83 $ 14.47 $ 14.90
============ ============ ============ ============ ============ ============
$ 14.92 $ 14.95 $ 14.65 $ 14.50 $ 15.10 $ 15.20
============ ============ ============ ============ ============ ============
1.03% 1.10% (0.75)% (1.78)% 0.67% 2.81%
============ ============ ============ ============ ============ ============

1.12% 1.12% 1.15% 1.12% 1.43%(7) 1.12%
1.54% 1.54% 1.57% 1.54% 1.58%(7) 1.54%

5.36% 5.30% 5.29% 5.24% 1.77%(7) 5.70%
0.49% 0.54% 0.45% 0.50% 0.00%(7) 0.54%

4.87% 4.76% 4.84% 4.74% 1.77%(7) 5.16%

$46,792 $28,153 $31,611 $38,183 $64,673 $21,321
0% 1% 17% 15% 0% 8%

$49,284 $29,705 $32,981 $40,062 $70,276 $22,545
$29,775 $18,000 $20,225 $24,200 $ -- $13,525
$66,383 $66,259 $65,771 $66,390 $ -- $66,674

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & ACCOUNTING POLICIES

BlackRock Municipal Bond Trust ("Municipal Bond"), BlackRock California
Municipal Bond Trust ("California Bond"), BlackRock Florida Municipal Bond Trust
("Florida Bond"), BlackRock Maryland Municipal Bond Trust ("Maryland Bond"),
BlackRock NewJersey Municipal Bond Trust ("New Jersey Bond"), BlackRock New York
Municipal Bond Trust ("New York Bond"), BlackRock Virginia Municipal Bond Trust
("Virginia Bond")(collectively the "Bond Trusts"), BlackRock Municipal Income
Trust II("Municipal Income II"), BlackRock California Municipal Income Trust
II("California Income II") and BlackRock New York Municipal Income Trust II("New
York Income II") (collectively the "Income IITrusts")(collectively the "Trusts")
are organized as Delaware business trusts. Municipal Bond and New York Bond were
organized on February 15, 2002. California Bond, Florida Bond, Maryland Bond,
New Jersey Bond and Virginia Bond were organized on March 14, 2002. They had no
transactions until April 25, 2002 when each of the Bond Trusts sold 7,679 common
shares for $110,002 to BlackRock Advisors, Inc. Investment operations for the
Bond Trusts commenced on April 30, 2002. The Income II Trusts were organized on
June 21, 2002. They had no transactions until July 16, 2002 when each of the
Income II Trusts sold 8,028 common shares for $115,001 to BlackRock Advisors,
Inc. Investment operations for the Income II Trusts commenced on July 30, 2002.
Municipal Bond and Municipal Income II are registered as diversified closed-end
management investment companies under the Investment Company Act of 1940.
California Bond, California Income II, Florida Bond, Maryland Bond, New Jersey
Bond, New York Bond, New York Income II and Virginia Bond are registered as
non-diversified closed-end management investment companies under the Investment
Company Act of 1940. The ability of issuers of debt securities held by the
Trusts to meet their obligations may be affected by economic developments in a
state, a specific industry or region.

The following is a summary of significant accounting policies followed by the
Trusts.

SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by dealers or pricing services selected under the supervision of each
Trust's Board of Trustees. In determining the value of a particular security,
pricing services may use certain information with respect to transactions in
such securities, quotations from bond dealers, market transactions in comparable
securities and various relationships between securities. Short-term investments
may be valued at amortized cost. Any securities or other assets for which such
current market quotations are not readily available are valued at fair value as
determined in good faith under procedures established by and under the general
supervision and responsibility of each Trust's Board of Trustees.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on trade date. Realized and unrealized gains and losses are calculated
on the identified cost basis. Each Trust also records interest income on an
accrual basis and amortizes premium and accretes discount to interest income on
securities purchased using the interest method.

SEGREGATION: In cases in which the Investment Company Act of 1940, as amended,
and the interpretive positions of the Securities and Exchange Commission ("SEC")
require that each Trust segregate assets in connection with certain investments
(e.g., when issued securities, reverse repurchase agreements or futures
contracts), each Trust will, consistent with certain interpretive letters issued
by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.

FEDERAL INCOME TAXES: It is each Trust's intention to elect to be treated as a
regulated investment company under the Internal Revenue Code and to distribute
sufficient net income to shareholders. For this reason and because substantially
all of the gross income of each Trust consists of tax-exempt interest, no
Federal income tax provisions are required.

DIVIDENDS AND DISTRIBUTIONS: Each Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.

ESTIMATES: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.

DEFERRED COMPENSATION PLAN: Under the revised deferred compensation plan
approved by each Trust's Board of Trustees on September 20, 2002, non-interested
Trustees may elect to defer receipt of all or a portion of their annual
compensation.

Deferred amounts earn a return as though equivalent dollar amounts had been
invested in common shares of other BlackRock Trusts selected by the Trustees.
This has the same economic effect for the Trustees as if the Trustees had
invested the deferred amounts in such other BlackRock Trusts.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. Each
Trust may, however, elect to invest in common shares of those Trusts selected by
the Trustees in order to match its deferred compensation obligations.

NOTE 2. AGREEMENTS

Each Trust has an Investment Advisory Agreement with BlackRock Advisors, Inc.
(the "Advisor"), a wholly-owned subsidiary of BlackRock, Inc. BlackRock
Financial Management, Inc., a wholly-owned subsidiary of BlackRock, Inc., serves
as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority-owned
subsidiary of PNC Financial Services Group, Inc. The investment management
agreement covers both investment advisory and administration services.

Each Trust's investment advisory fees paid to the Advisor are computed weekly
and payable monthly based on an annual rate, 0.65% for the Bond Trusts and 0.55%
for the Income II Trusts, of each Trust's average weekly managed assets.
"Managed assets" means the total assets of a Trust (including any assets
attributable to any preferred shares that may be outstanding) minus the sum of
accrued liabilities (other than debt representing financial leverage). The
Advisor has voluntarily agreed to waive a portion of the investment advisory fee
or other expenses of each Trust. With respect to the Bond Trusts the waiver, as
a percentage of managed assets, is as follows: 0.30% for the first 5 years of
each Trust's operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8,
0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts the
waiver, as a percentage of managed assets, is as follows: 0.15% for the first 5
years of each Trust's operations, 0.10% in year 6 through year 7, 0.05% in year
8 through year 10. The investment advisory fee and waiver amount for each Trust
from the commencement of investment operations (April 30, 2002 for the Bond
Trusts and July 30, 2002 for the Income II Trusts) through August 31,2002 were
as follows:

FUND ADVISORY FEE WAIVER FUND ADVISORY FEE WAIVER
-------- ------------ -------- ----------------- ------------ --------

Municipal Bond $444,125 $204,981 Maryland Bond $ 87,170 $40,232
Municipal Income II 152,741 41,657 New Jersey Bond 97,897 45,183
California Bond 146,284 67,516 New York Bond 117,932 54,430
California Income II 52,657 14,361 New York Income II 32,159 8,771
Florida Bond 144,686 66,778 Virginia Bond 65,868 30,401

Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of each Trust who
are affiliated persons of the Advisor, occupancy and certain clerical and
accounting costs of each Trust. Each Trust bears all other costs and expenses,
which include reimbursements to the Advisor for certain operational support
services provided to each Trust.

NOTE 3. PORTFOLIO SECURITIES

Purchases and sales of investment securities, other than short-term
investments, from the commencement of investment operations (April 30, 2002 for
the Bond Trusts and July 30, 2002 for the Income II Trusts) through August
31,2002 were as follows:

FUND PURCHASES SALES FUND PURCHASES SALES
-------- ------------ ----------- ------------------ ----------- ----------

Municipal Bond $269,824,443 $37,152,858 Maryland Bond $46,368,255 $ 216,114
Municipal Income II 303,325,964 -- New Jersey Bond 57,339,070 5,986,450
California Bond 86,769,007 10,297,175 New York Bond 67,766,612 6,722,573
California Income II 81,548,685 -- New York Income II 60,327,107 --
Florida Bond 75,541,845 -- Virginia Bond 36,730,641 2,098,756

At August 31, 2002, the total cost of securities for Federal income tax
purposes and the aggregate gross unrealized appreciation and depreciation for
securities held by each Trust is as follows:

FUND COST APPRECIATION DEPRECIATION NET
-------- ------------ ------------ ------------ ----------

Municipal Bond $233,338,314 $6,652,171 $1,349,522 $5,302,649
Municipal Income II 389,339,421 3,578,089 1,931,118 1,646,971
California Bond 76,659,727 2,479,299 288,339 2,190,960
California Income II 128,464,767 903,625 87,054 816,571
Florida Bond 75,620,042 2,386,733 -- 2,386,733
Maryland Bond 46,145,976 1,149,267 -- 1,149,267
New Jersey Bond 51,440,467 1,162,480 322,802 839,678
New York Bond 61,223,345 1,613,091 1,040 1,612,051
New York Income II 73,827,214 737,768 26,313 711,455
Virginia Bond 34,685,013 1,030,062 -- 1,030,062

NOTE 4. CAPITAL

There are an unlimited number of $.001 par value common shares of beneficial
interest authorized for each Trust. Each Trust may classify or reclassify any
unissued common shares into one or more series of preferred shares. At August
31, 2002 the shares outstanding and the shares owned by the Advisor of each
Trust were:

COMMON COMMON COMMON COMMON
SHARES SHARES OWNED SHARES SHARES OWNED
FUND OUTSTANDING BY THE ADVISOR FUND OUTSTANDING BY THE ADVISOR
-------- ----------- -------------- ------------------ ----------- --------------

Municipal Bond 10,110,959 7,679 Maryland Bond 2,012,881 7,679
Municipal Income II 22,458,028 8,028 New Jersey Bond 2,262,306 7,679
California Bond 3,350,310 7,679 New York Bond 2,700,991 7,679
California Income II 7,808,028 8,028 New York Income II 4,858,028 8,028
Florida Bond 3,308,251 7,679 Virginia Bond 1,513,024 7,679

Transactions in common shares of beneficial interest from the commencement of
investment operations (April 30, 2002 for the Bond Trusts and July 30, 2002 for
the Income II Trusts) through August 31, 2002 were as follows:

SHARES FROM
-----------------------------------------------------------------
INITIAL UNDERWRITERS' EXERCISING REINVESTMENT NET INCREASE IN
FUND PUBLIC OFFERING THE OVER-ALLOTMENT OPTION OF DIVIDENDS SHARES OUTSTANDING
------- --------------- ------------------------- ------------ ------------------

Municipal Bond 9,347,679 750,000 13,280 10,110,959
Municipal Income II 21,458,028 1,000,000 -- 22,458,028
California Bond 3,007,679 335,000 7,631 3,350,310
California Income II 7,408,028 400,000 -- 7,808,028
Florida Bond 2,932,679 375,000 572 3,308,251
Maryland Bond 1,767,679 245,000 202 2,012,881
New Jersey Bond 2,007,679 250,000 4,627 2,262,306
New York Bond 2,457,679 240,000 3,312 2,700,991
New York Income II 4,508,028 350,000 -- 4,858,028
Virginia Bond 1,347,679 165,000 345 1,513,024

Offering costs incurred in connection with each Trust's offering of common
shares have been charged to paid-in capital in excess of par of the common
shares are as follows:

FUND OFFERING COST FUND OFFERING COST
-------- ------------- ------------------- -------------
Municipal Bond $292,700 Maryland Bond $ 50,150
Municipal Income II 658,500 New Jersey Bond 57,500
California Bond 90,050 New York Bond 70,700
California Income II 219,000 New York Income II 130,500
Florida Bond 89,000 Virginia Bond 35,150

On June 12, 2002, the Bond Trusts reclassified common shares of beneficial
interest and issued several series of Auction Market Preferred Shares
("preferred shares") listed in the table below. The preferred shares have a
liquidation value of $25,000 per share plus any accumulated unpaid dividends.

FUND SERIES SHARES FUND SERIES SHARES
-------- ---------- ----------- -------- ---------- -----------

Municipal Bond T7 1,810 Maryland Bond R7 720
R7 1,810 New Jersey Bond M7 809
California Bond F7 1,199 New York Bond T7 968
Florida Bond W7 1,191 Virginia Bond R7 541

Underwriting discounts and offering costs incurred in connection with the
preferred share offering have been charged to paid-in capital in excess of par
of the common shares.

UNDERWRITING OFFERING UNDERWRITING OFFERING
FUND DISCOUNT COST FUND DISCOUNT COST
-------- ------------ --------- --------------- ------------ ---------

Municipal Bond $905,000 $360,738 New Jersey Bond $202,250 $ 87,607
California Bond 299,750 125,501 New York Bond 242,000 103,056
Florida Bond 297,750 124,724 Virginia Bond 135,250 61,566
Maryland Bond 180,000 78,959

Dividends on seven day preferred shares are cumulative at a rate which is
reset every 7 days based on the results of an auction. The dividend ranges on
the preferred shares for each of the Bond Trusts from the commencement of
investment operations (April 30, 2002) through August 31, 2002, were:

FUND LOW HIGH FUND LOW HIGH
-------- ------ ------ -------- ----- -----

Municipal Bond 1.19% 1.50% New Jersey Bond 0.90% 1.20%
California Bond 0.875% 1.40% New York Bond 1.00% 1.35%
Florida Bond 1.00% 1.35% Virginia Bond 1.30% 1.45%
Maryland Bond 1.25% 1.50%

A Trust may not declare dividends or make other distributions on common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.

The preferred shares are redeemable at the option of each Trust, in whole or
in part, on any dividend payment date at $25,000 per share plus any accumulated
or unpaid dividends whether or not declared. The preferred shares are also
subject to mandatory redemption at $25,000 per share plus any accumulated or
unpaid dividends, whether or not declared, if certain requirements relating to
the composition of the assets and liabilities of a Trust, as set forth in each
Trust's Declaration of Trust, are not satisfied.

The holders of preferred shares have voting rights equal to the holders of
common shares (one vote per share) and will vote together with holders of common
shares as a single class. However, holders of preferred shares are also entitled
to elect two Trustees for each Trust. In addition, the Investment Company Act of
1940 requires that along with approval by shareholders that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred
shares, voting separately as a class would be required to (a) adopt any plan of
reorganization that would adversely affect the preferred shares and (b) take any
action requiring a vote of security holders, including, among other things,
changes in a Trust's sub-classification as a closed-end investment company or
changes in its fundamental investment restrictions.

NOTE 5. DIVIDENDS

Subsequent to August 31, 2002, the Board of Trustees of each of the Bond Trusts
declared dividends from undistributed earnings per common share payable October
1, 2002, to shareholders of record on September 16, 2002. The per share common
dividends declared were:

COMMON DIVIDEND COMMON DIVIDEND
FUND PER SHARE FUND PER SHARE
-------- --------------- --------------- ---------------
Municipal Bond $0.084375 New Jersey Bond $0.077500
California Bond 0.078125 New York Bond 0.076250
Florida Bond 0.076250 Virginia Bond 0.070625
Maryland Bond 0.070000

The dividends declared on preferred shares for the period September 1, 2002
to September 30, 2002, for each series of each of the Bond Trusts was as
follows:

DIVIDENDS DIVIDENDS
FUND SERIES DECLARED FUND SERIES DECLARED
-------- ------ --------- --------------- ------ ---------

Municipal Bond T7 $50,752 Maryland Bond R7 $19,199
R7 47,277 New Jersey Bond M7 17,871
California Bond F7 31,606 New York Bond T7 25,284
Florida Bond W7 29,751 Virginia Bond R7 14,748

NOTE 6. SUBSEQUENT EVENTS

On September 19, 2002, each of the Income II Trusts reclassified common shares
of beneficial interest and issued several series of Auction Market Preferred
Shares ("preferred shares") listed in the table below. The preferred shares have
a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

FUND SERIES SHARES FUND SERIES SHARES
-------- ------ --------- --------------- ------ ---------

Municipal Income II M7 2,055 California Income II T7 1,439
T7 2,056 R7 1,439
W7 2,055 New York Income II W7 1,786
R7 2,056

Underwriting discounts and offering costs incurred in connection with the
preferred share offering have been charged to paid-in capital in excess of par
of the common shares.

UNDERWRITING OFFERING UNDERWRITING OFFERING
FUND DISCOUNT COST FUND DISCOUNT COST
-------- ------------ --------- --------------- ------------ ---------

Municipal Income II $2,055,500 $316,954 New York Income II $446,500 $99,639
California Income II 719,500 125,210

On September 20, 2002, the Board of Trustees of each of the Income II Trusts
declared their first monthly dividend, payable on October 1, 2002 for common
shareholders of record as of September 27, 2002 for the following amounts.

FUND RATE
-------- ---------
Municipal Income II $0.08375
California Income II $0.08125
New York Income II $0.07875

INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------

The Board of Trustees and Shareholders of:

BlackRock Municipal Bond Trust, BlackRock California Municipal Bond Trust,
BlackRock Florida Municipal Bond Trust, BlackRock Maryland Municipal Bond Trust,
BlackRock New Jersey Municipal Bond Trust, BlackRock New York Municipal Bond
Trust, BlackRock Virginia Municipal Bond Trust (collectively the "Bond Trusts"),
BlackRock Municipal Income Trust II, BlackRock California Municipal Income Trust
II and BlackRock New York Municipal Income Trust II (collectively the "Income II
Trusts") (collectively the "Trusts").

We have audited the accompanying statements of assets and liabilities of the
Trusts, including the portfolios of investments, as of August 31, 2002 and the
related statements of operations, the statements of changes in net assets and
the financial highlights for the period from April 30, 2002 (commencement of
investment operations) through August 31, 2002 for the Bond Trusts and July 30,
2002 (commencement of investment operations) through August 31, 2002 for the
Income II Trusts. These financial statements are the responsibility of the
Trusts' management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned by
correspondence with the custodians and brokers; where replies were not received
from brokers, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statement presents fairly, in all material
respects, the financial position of the Trusts at August 31, 2002 and the
results of their operations, the changes in their net assets and the financial
highlights for the period then ended, in conformity with accounting principles
generally accepted in the United States of America.

/s/ Deloitte & Touche LLP
-------------------------
Boston, Massachusetts
October 4, 2002

DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------

Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common
shareholders are automatically enrolled to have all distributions of dividends
and capital gains reinvested by EquiServe Trust Company, N.A. (the "Plan Agent")
in the respective Trust's shares pursuant to the Plan. Shareholders who elect
not to participate in the Plan will receive all distributions in cash paid by
check and mailed directly to the shareholders of record (or if the shares are
held in street or other nominee name, then to the nominee) by the Plan Agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After a Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will acquire shares for the participants' accounts,
depending upon the circumstances described below, either (i) through receipt of
unissued but authorized shares from the Trust ("newly issued shares") or (ii) by
purchase of outstanding shares on the open market, on the Trust's primary
exchange or elsewhere ("open-market purchases"). If, on the dividend payment
date, the net asset value per share ("NAV") is equal to or less than the market
price per share plus estimated brokerage commissions (such condition being
referred to herein as "market premium"), the Plan Agent will invest the dividend
amount in newly issued shares on behalf of the participants. The number of newly
issued shares to be credited to each participant's account will be determined by
dividing the dollar amount of the dividend by the NAV on the date the shares are
issued. However, if the NAV is less than 95% of the market price on the payment
date, the dollar amount of the dividend will be divided by 95% of the market
price on the payment date. If, on the dividend payment date, the NAV is greater
than the market value per share plus estimated brokerage commissions (such
condition being referred to herein as "market discount"), the Plan Agent will
invest the dividend amount in shares acquired on behalf of the participants in
open-market purchases.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by each Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any Federal income tax that may be payable on
such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no
direct service charge to participants in the Plan; however, each Trust reserves
the right to amend the Plan to include a service charge payable by the
participants. All correspondence concerning the Plan should be directed to the
Plan Agent at (800) 699-1BFM or 150 Royall Street, Canton, MA 02021.

TRUSTEES INFORMATION
--------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
-----------------------------------------------------------------------------------------------------

Name, address, age Andrew F. Brimmer Richard E. Cavanagh Kent Dixon
P.O. Box 4546 P.O. Box 4546 P.O. Box 4546
New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546
Age: 76 Age: 56 Age: 65
-----------------------------------------------------------------------------------------------------
Current positions Lead Trustee Trustee Trustee
held with the Funds
-----------------------------------------------------------------------------------------------------
Term of office and 3 years(2)/ 3 years(2)/ 3 years(2)/
length of time served since inception(3) since inception(3) since inception(3)
-----------------------------------------------------------------------------------------------------
Principal occupations President of Brimmer & President and Chief Consultant/Investor.
during the past five Company, Inc., a Executive Officer of The Former President and
years Washington, D.C.-based Conference Board, Inc., a Chief Executive Officer
economic and financial leading global business of Empire Federal Savings
consulting firm. Wilmer membership organization, Bank of America and Banc
D. Barrett Professor of from 1995-present. Former PLUS Savings Association,
Economics, University of Executive Dean of the former Chairman of the
Massachusetts - Amherst. John F. Kennedy School of Board, President and
Formerly member of the Government at Harvard Chief Executive Officer
Board of Governors of the University from of Northeast Savings.
Federal Reserve System. 1988-1995. Acting
Former Chairman, District Director, Harvard Center
of Columbia Financial for Business and
Control Board. Government (1991-1993).
Formerly Partner
(principal) of McKinsey &
Company, Inc. (1980-
1988). Former Executive
Director of Federal Cash
Management, White House
Office of Management and
Budget (1977-1979).
Co-author, THE WINNING
PERFORMANCE (best selling
management book published
in 13 national editions).
-----------------------------------------------------------------------------------------------------
Number of portfolios 40(4) 40(4) 40(4)
overseen within the
fund complex
-----------------------------------------------------------------------------------------------------
Other Directorships Director of CarrAmerica Trustee Emeritus, Former Director of ISFA
held outside of the Realty Corporation and Wesleyan University, (the owner of INVEST, a
fund complex Borg-Warner Automotive. Trustee: Drucker national securities
Formerly Director of Foundation, Airplanes brokerage service
AirBorne Express, Group, Aircraft Finance designed for banks and
BankAmerica Corporation Trust (AFT) and thrift institutions).
(Bank of America), Bell Educational Testing
South Corporation, Service (ETS). Director,
College Retirement Arch Chemicals, Fremont
Equities Fund (Trustee), Group and The Guardian
Commodity Exchange, Inc. Life Insurance Company of
(Public Governor), America.
Connecticut Mutual Life
Insurance Company, E.I.
Dupont de Nemours &
Company, Equitable Life
Assurance Society of the
United States, Gannett
Company, Mercedes-Benz of
North America, MNC
Financial Corporation
(American Security Bank),
NCM Capital Management,
Navistar International
Corporation, PHH Corp.
and UAL Corporation
(United Airlines).
-----------------------------------------------------------------------------------------------------
For "Interested
Trustee"
Relationships,
events or
transactions by reason
of which the trustee
is an interested
person as defined in
Section 2(a)(19)(1940
Act)
-----------------------------------------------------------------------------------------------------

(1) Interested Trustee as defined by Section 2(a)(19) of the Investment Company
Act of 1940.
(2) The Board of Trustees is classified into three classes of which one class is
elected annually. Each Trustee serves a three-year term concurrent with the
class from which he is elected.
(3) Commencement of investment operations (April 30, 2002 for the Bond Trusts
and July 30, 2002 for the Income II Trusts).
(4) The fund complex currently consists of 40 separate closed-end funds, each
with one investment portfolio.

-----------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (CONTINUED) INTERESTED TRUSTEES(1)
-----------------------------------------------------------------------------------------------------------------------------------

Frank J. Fabozzi James Clayburn La Force, Jr. Walter F. Mondale Ralph L. Schlosstein(1) Robert S. Kapito1
P.O. Box 4546 P.O. Box 4546 P.O. Box 4546 40 East 52nd Street 40 East 52nd Street
New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10154 New York, NY 10154
Age: 54 Age: 73 Age: 74 Age: 51 Age: 45
-----------------------------------------------------------------------------------------------------------------------------------
Trustee Trustee Trustee Chairman of the Board President and Trustee
-----------------------------------------------------------------------------------------------------------------------------------
3 years(2)/ 3 years(2)/ 3 years(2)/ 3 years(2)/ 3 years(2)/
since inception(3) since inception(3) since inception(3) since inception(3) since August 22, 2002
-----------------------------------------------------------------------------------------------------------------------------------
Consultant. Editor Dean Emeritus of The Partner, Dorsey & Director since 1999 Vice Chairman of
of THE JOURNAL OF John E. Anderson Whitney, a law firm and President of BlackRock, Inc. Head
PORTFOLIO MANAGEMENT Graduate School of (December BlackRock, Inc. of the Portfolio
and Adjunct Management, 1996-present, since its formation Management Group.
Professor of Finance University of September in 1998 and of Also a member of the
at the School of California since 1987-August 1993). BlackRock, Inc.'s Management
Management at Yale July 1, 1993. Acting Formerly U.S. predecessor entities Committee, the
University. Author Dean of The School Ambassador to Japan since 1988. Member Investment Strategy
and editor of of Business, Hong (1993-1996). of the Management Group, the Fixed
several books on Kong University of Formerly Vice Committee and Income and Global
fixed income Science and President of the Investment Strategy Operating Committees
portfolio Technology United States, U.S. Group of BlackRock, and the Equity
management. Visiting 1990-1993. From 1978 Senator and Attorney Inc. Formerly, Investment Strategy
Professor of Finance to September 1993, General of the State Managing Director of Group. Responsible
and Accounting at Dean of The John E. of Minnesota. 1984 Lehman Brothers, for the portfolio
the Sloan School of Anderson Graduate Democratic Nominee Inc. and Co-head of management of the
Management, School of for President of the its Mortgage and Fixed Income,
Massachusetts Management, United States. Savings Institutions Domestic Equity and
Institute of University of Group. Currently, International
Technology from 1986 California. Chairman of each of Equity, Liquidity,
to August 1992. the closed-end and Alternative
Trusts in which Investment Groups of
BlackRock Advisors, BlackRock. Currently
Inc. acts as President and a
investment advisor. Trustee of each of
the closed-end
Trusts in which
BlackRock Advisors,
Inc. acts as
investment advisor.
-----------------------------------------------------------------------------------------------------------------------------------
40(4) 40(4) 40(4) 40(4) 40(4)
-----------------------------------------------------------------------------------------------------------------------------------
Director, Guardian Director, Jacobs Director, Northwest Chairman and Chairman of the Hope
Mutual Funds Group. Engineering Group, Airlines Corp., President of the and Heroes
Inc., Payden & Rygel UnitedHealth Group. BlackRock Provident Children's Cancer
Investment Trust, Institutional Funds Fund. President of
Provident Investment and Director of the Board of
Counsel Funds. Anthricite Capital, Directors of the
Advisors Series Inc. and several of Periwinkle National
Trust, Arena BlackRock's Theatre for Young
Pharmaceuticals, alternative Audiences. Director
Inc. and CancerVax investment vehicles. of icruise.com,
Corporation. Currently, a Member Corp.
of the Visiting
Board of Overseers
of the John F.
Kennedy School of
Government at
Harvard University,
the Financial
Institutions Center
Board of the Wharton
School of the
University of
Pennsylvania, a
Trustee of Trinity
School in New York
City and a Trustee
of New Visions for
Public Education in
New York City.
Formerly, a Director
of Pulte Corporation
and a Member of
Fannie Mae's
Advisory Council.
-----------------------------------------------------------------------------------------------------------------------------------
Director and President Vice Chairman of the
of the Advisor. Advisor
-----------------------------------------------------------------------------------------------------------------------------------

INVESTMENT SUMMARIES
--------------------------------------------------------------------------------

WHO MANAGES THE TRUSTS?

BlackRock Advisors, Inc. (the "Advisor") manages the Trusts. The Advisor is a
wholly owned subsidiary of BlackRock, Inc. ("BlackRock"), which is one of the
largest publicly traded investment management firms in the United States with
approximately $250 billion of assets under management as of June 30, 2002.
BlackRock manages assets on behalf of institutional and individual investors
worldwide through a variety of equity, fixed income, liquidity and alternative
investment products, including the BLACKROCK FUNDS and BLACKROCK PROVIDENT
INSTITUTIONAL FUNDS. In addition, BlackRock provides risk management and
investment system services to a growing number of institutional investors under
the BLACKROCK SOLUTIONS name. Clients are served from the Company's headquarters
in New York City, as well as offices in Boston, Edinburgh, Hong Kong, San
Francisco, Tokyo and Wilmington. BlackRock is a member of The PNC Financial
Services Group, Inc. (NYSE: PNC), and is majority-owned by PNC and by BlackRock
employees.

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?

The Trusts common shares are traded on either the New York Stock Exchange or the
American Stock Exchange, both of which provide investors with liquidity on a
daily basis. Orders to buy or sell shares of the Trusts must be placed through a
registered broker or financial advisor. The Trusts pay monthly dividends which
are typically paid on the first business day of the month. For shares held in
the shareholder's name, dividends may be reinvested in additional shares of the
respective Trust through its transfer agent, EquiServe Trust Company, N.A.
Investors who wish to hold shares in a brokerage account should check with their
financial advisor to determine whether their brokerage firm offers dividend
reinvestment services.

LEVERAGE CONSIDERATIONS IN THE TRUSTS

The Trusts employ leverage primarily through the issuance of preferred shares.
Leverage permits the Trusts to borrow money at short-term rates and reinvest
that money in longer-term assets, which typically offer higher interest rates.
The difference between the cost of the borrowed funds and the income earned on
the proceeds that are invested in longer-term assets is the benefit to the
Trusts from leverage.

Leverage increases the duration (or price sensitivity of the net assets with
respect to changes in interest rates) of the Trusts, which can improve the
performance of the Trusts in a declining interest rate environment, but can
cause net assets to decline faster in a rapidly rising interest rate
environment. The Advisor's portfolio managers continuously monitor and regularly
review each Trust's use of leverage and may reduce, or unwind, the amount of
leverage employed should the Advisor consider that reduction to be in the best
interests of the shareholders.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO THE TRUSTS

THE TRUSTS ARE INTENDED TO BE A LONG-TERM INVESTMENT AND ARE NOT SHORT-TERM
TRADING VEHICLES.

DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trusts are likely
to vary over time as fixed income market conditions change. Future dividends may
be higher or lower than the dividends the Trusts are currently paying.

LEVERAGE. The Trusts utilize leverage through the issuance of preferred shares,
which involves special risks. The Trusts' net asset value and market value may
be more volatile due to the use of leverage.

MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trusts trade on the New York Stock Exchange (NYSE) or the American Stock
Exchange (AMEX) and as such are subject to supply and demand influences. As a
result, shares may trade at a discount or a premium to their net asset value.

MUNICIPAL OBLIGATIONS. The value of municipal debt securities generally varies
inversely with changes in prevailing market interest rates. Depending on the
amount of call protection that the securities in a Trust have, a Trust may be
subject to certain reinvestment risks in environments of declining interest
rates.

HIGH YIELD RISK. The Trusts may invest in high yield bonds, which involves
additional risks, including credit risk. The value of high yield, lower quality
bonds is affected by the creditworthiness of the issuers of the securities and
by general economic and specific industry conditions. Issuers of high yield
bonds are not as strong financially as those with higher credit ratings. A
Trust's investment in lower grade securities will expose the Trust to greater
risk than if the Trust owned only higher grade securities.

ILLIQUID SECURITIES. The Trusts may invest in securities that are illiquid,
although under current market conditions the Trusts expect to do so to only a
limited extent. These securities involve special risks.

ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in a
Trust's business or management more difficult without the approval of the
Trust's Board of Trustees and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

ALTERNATIVE MINIMUM TAX (AMT). The Trusts may invest in securities subject to
alternative minimum tax.

BLACKROCK MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of municipal obligations, which include debt
obligations issued by the United States, its political subdivisions, agencies
and instrumentalities and by other qualifying issuers that pay interest which,
in the opinion of the bond counsel of the issuer, is exempt from Federal income
taxes.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax. As such, the
Advisor actively manages the assets in relation to market conditions and
interest rate changes. Depending on yield and portfolio allocation
considerations, the Advisor may choose to invest a portion of the Trust's assets
in securities which pay interest that is subject to AMT (Federal alternative
minimum tax). The Trust intends to invest primarily in long-term bonds and
expects bonds in its portfolio to maintain an average portfolio maturity of 15
years or more, but the average maturity may be shortened or lengthened from time
to time depending on market conditions. The Trust employs leverage primarily
through the issuance of preferred shares. Preferred shareholders will receive
dividends based on short-term rates in exchange for allowing the Trust to borrow
additional assets. These assets will be invested in longer-term assets which
typically offer higher interest rates. The difference between the cost of the
dividends paid to preferred shareholders and the interest earned on the
longer-term securities will provide higher income levels for common shareholders
in most interest rate environments. See "Leverage Considerations in the Trusts".

BLACKROCK MUNICIPAL INCOME TRUST II

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax.

WHAT CAN THE TRUST INVEST IN?

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and California income tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of California municipal obligations, which
include debt obligations issued by the State of California, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and California income tax.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and California
income tax. As such, the Advisor actively manages the assets in relation to
market conditions and interest rate changes. Depending on yield and portfolio
allocation considerations, the Advisor may choose to invest a portion of the
Trust's assets in securities which pay interest that is subject to AMT (Federal
alternative minimum tax). The Trust intends to invest primarily in long-term
bonds and expects bonds in its portfolio to maintain an average portfolio
maturity of 15 years or more, but the average maturity may be shortened or
lengthened from time to time depending on market conditions. The Trust employs
leverage primarily through the issuance of preferred shares. Preferred
shareholders will receive dividends based on short-term rates in exchange for
allowing the Trust to borrow additional assets. These assets will be invested in
longer-term assets which typically offer higher interest rates. The difference
between the cost of the dividends paid to preferred shareholders and the
interest earned on the longer-term securities will provide higher income levels
for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and California income tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of California municipal obligations, which
include debt obligations issued by the State of California, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and California income tax.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and California
income tax. As such, the Advisor actively manages the assets in relation to
market conditions and interest rate changes. Depending on yield and portfolio
allocation considerations, the Advisor may choose to invest a portion of the
Trust's assets in securities which pay interest that is subject to AMT (Federal
alternative minimum tax). The Trust intends to invest primarily in long-term
bonds and expects bonds in its portfolio to maintain an average portfolio
maturity of 15 years or more, but the average maturity may be shortened or
lengthened from time to time depending on market conditions. The Trust employs
leverage primarily through the issuance of preferred shares. Preferred
shareholders will receive dividends based on short-term rates in exchange for
allowing the Trust to borrow additional assets. These assets will be invested in
longer-term assets which typically offer higher interest rates. The difference
between the cost of the dividends paid to preferred shareholders and the
interest earned on the longer-term securities will provide higher income levels
for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

BLACKROCK FLORIDA MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and Florida intangible personal property tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of Florida municipal obligations, which include
debt obligations issued by the State of Florida, its political subdivisions,
agencies and instrumentalities and by other qualifying issuers that pay interest
which, in the opinion of the bond counsel of the issuer, is exempt from Federal
income tax and Florida intangible personal property tax.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and Florida
intangible personal property tax. As such, the Advisor actively manages the
assets in relation to market conditions and interest rate changes. Depending on
yield and portfolio allocation considerations, the Advisor may choose to invest
a portion of the Trust's assets in securities which pay interest that is subject
to AMT (Federal alternative minimum tax). The Trust intends to invest primarily
in long-term bonds and expects bonds in its portfolio to maintain an average
portfolio maturity of 15 years or more, but the average maturity may be
shortened or lengthened from time to time depending on market conditions. The
Trust employs leverage primarily through the issuance of preferred shares.
Preferred shareholders will receive dividends based on short-term rates in
exchange for allowing the Trust to borrow additional assets. These assets will
be invested in longer-term assets which typically offer higher interest rates.
The difference between the cost of the dividends paid to preferred shareholders
and the interest earned on the longer-term securities will provide higher income
levels for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

BLACKROCK MARYLAND MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and Maryland personal income tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of Maryland municipal obligations, which
include debt obligations issued by the State of Maryland, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and Maryland personal income tax.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and Maryland
personal income tax. As such, the Advisor actively manages the assets in
relation to market conditions and interest rate changes. Depending on yield and
portfolio allocation considerations, the Advisor may choose to invest a portion
of the Trust's assets in securities which pay interest that is subject to AMT
(Federal alternative minimum tax). The Trust intends to invest primarily in
long-term bonds and expects bonds in its portfolio to maintain an average
portfolio maturity of 15 years or more, but the average maturity may be
shortened or lengthened from time to time depending on market conditions. The
Trust employs leverage primarily through the issuance of preferred shares.
Preferred shareholders will receive dividends based on short-term rates in
exchange for allowing the Trust to borrow additional assets. These assets will
be invested in longer-term assets which typically offer higher interest rates.
The difference between the cost of the dividends paid to preferred shareholders
and the interest earned on the longer-term securities will provide higher income
levels for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and New Jersey gross income tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust intends to invest
primarily all of the assets in a portfolio of New Jersey municipal obligations,
which include debt obligations issued by the State of New Jersey, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and New Jersey gross income tax.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies to seek to achieve its objective by investing
primarily in municipal bonds that pay interest that is exempt from regular
Federal income tax and New Jersey gross income tax. As such, the Advisor
actively manages the assets in relation to market conditions and interest rate
changes. Depending on yield and portfolio allocation considerations, the Advisor
may choose to invest a portion of the Trust's assets in securities which pay
interest that is subject to AMT (Federal alternative minimum tax). The Trust
intends to invest primarily in long-term bonds and expects bonds in its
portfolio to maintain an average portfolio maturity of 15 years or more, but the
average maturity may be shortened or lengthened from time to time depending on
market conditions. The Trust employs leverage primarily through the issuance of
preferred shares. Preferred shareholders will receive dividends based on
short-term rates in exchange for allowing the Trust to borrow additional assets.
These assets will be invested in longer-term assets which typically offer higher
interest rates. The difference between the cost of the dividends paid to
preferred shareholders and the interest earned on the longer-term securities
will provide higher income levels for common shareholders in most interest rate
environments. See "Leverage Considerations in the Trusts".

BLACKROCK NEW YORK MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and New York State and New York City personal income
taxes.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of New York municipal obligations, which
include debt obligations issued by the State of New York, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and New York State and New York City personal
income taxes.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and New York State
and New York City personal income taxes. As such, the Advisor actively manages
the assets in relation to market conditions and interest rate changes. Depending
on yield and portfolio allocation considerations, the Advisor may choose to
invest a portion of the Trust's assets in securities which pay interest that is
subject to AMT (Federal alternative minimum tax). The Trust intends to invest
primarily in long-term bonds and expects bonds in its portfolio to maintain an
average portfolio maturity of 15 years or more, but the average maturity may be
shortened or lengthened from time to time depending on market conditions. The
Trust employs leverage primarily through the issuance of preferred shares.
Preferred shareholders will receive dividends based on short-term rates in
exchange for allowing the Trust to borrow additional assets. These assets will
be invested in longer-term assets which typically offer higher interest rates.
The difference between the cost of the dividends paid to preferred shareholders
and the interest earned on the longer-term securities will provide higher income
levels for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and New York State and New York City personal income
taxes.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of New York municipal obligations, which
include debt obligations issued by the State of New York, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and New York State and New York City personal
income taxes.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and New York State
and New York City personal income taxes. As such, the Advisor actively manages
the assets in relation to market conditions and interest rate changes. Depending
on yield and portfolio allocation considerations, the Advisor may choose to
invest a portion of the Trust's assets in securities which pay interest that is
subject to AMT (Federal alternative minimum tax). The Trust intends to invest
primarily in long-term bonds and expects bonds in its portfolio to maintain an
average portfolio maturity of 15 years or more, but the average maturity may be
shortened or lengthened from time to time depending on market conditions. The
Trust employs leverage primarily through the issuance of preferred shares.
Preferred shareholders will receive dividends based on short-term rates in
exchange for allowing the Trust to borrow additional assets. These assets will
be invested in longer-term assets which typically offer higher interest rates.
The difference between the cost of the dividends paid to preferred shareholders
and the interest earned on the longer-term securities will provide higher income
levels for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and Virginia personal income tax.

WHAT CAN THE TRUST INVEST IN?

Under normal conditions, the Trust manages its assets so that at the time of
investment, at least 80% of its investments are rated at least investment grade
(BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of
its assets are rated below investment grade (Ba/BB or B) or that are unrated but
deemed to be of comparable quality by the Advisor. The Trust invests primarily
all of the assets in a portfolio of Virginia municipal obligations, which
include debt obligations issued by the Commonwealth of Virginia, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from Federal income tax and Virginia personal income tax.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor manages the assets of the Trust in accordance with the Trust's
investment objective and policies by investing primarily in municipal bonds that
pay interest that is exempt from regular Federal income tax and Virginia
personal income tax. As such, the Advisor actively manages the assets in
relation to market conditions and interest rate changes. Depending on yield and
portfolio allocation considerations, the Advisor may choose to invest a portion
of the Trust's assets in securities which pay interest that is subject to AMT
(Federal alternative minimum tax). The Trust intends to invest primarily in
long-term bonds and expects bonds in its portfolio to maintain an average
portfolio maturity of 15 years or more, but the average maturity may be
shortened or lengthened from time to time depending on market conditions. The
Trust employs leverage primarily through the issuance of preferred shares.
Preferred shareholders will receive dividends based on short-term rates in
exchange for allowing the Trust to borrow additional assets. These assets will
be invested in longer-term assets which typically offer higher interest rates.
The difference between the cost of the dividends paid to preferred shareholders
and the interest earned on the longer-term securities will provide higher income
levels for common shareholders in most interest rate environments. See "Leverage
Considerations in the Trusts".

ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

There have been no material changes in the Trusts' investment objectives or
policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trusts. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trusts' portfolios.

We are required by the Internal Revenue Code to advise you within 60 days
of the Bond Trusts' tax year-end as to federally tax-exempt interest dividends
received by you during such tax year. Accordingly, we are advising you that all
dividends paid by the Bond Trusts during the tax year ended October 31, 2002,
were federally tax-exempt interest dividends.

Quarterly performance and other information regarding the Trusts may be
found on BlackRock's website, which can be accessed at
http://www.blackrock.com/funds/cefunds.html. This reference to BlackRock's
website is intended to allow investors public access to quarterly information
regarding the Trusts and is not intended to incorporate BlackRock's website into
this report.

Certain of the officers of the Trusts listed on the inside back cover of
this Report to Shareholders, are also officers of the Advisor or Sub-Advisor.
They serve in the following capacities for the Advisor or Sub-Advisor: Robert S.
Kapito--Director and Vice Chairman of the Advisor and Vice Chairman of the
Sub-Advisor, Kevin M. Klingert--Director anD Managing Director of the Advisor
and Managing Director of the Sub-Advisor, Henry Gabbay and Anne
Ackerley--Managing Directors of the Advisor and the Sub-Advisor and Richard M.
Shea and James Kong--Managing Directors of the Sub-Advisor.

GLOSSARY
--------------------------------------------------------------------------------

CLOSED-END FUND: Investment vehicle which initially offers a fixed
number of shares and trades on a stock exchange. Each
Trust invests in a portfolio of securities in
accordance with its stated investment objectives and
policies.

DISCOUNT: When a Trust's net asset value is greater than its
market price, the Trust is said to be trading at a
discount.

DIVIDEND: Income generated by securities in a portfolio and
distributed to shareholders after the deduction of
expenses. Each Trust declares and pays dividends to
common shareholders on a monthly basis.

DIVIDEND REINVESTMENT: Common shareholders may have all dividends and
distributions of capital gains automatically reinvested
into additional shares of their respective Trust.

MARKET PRICE: Price per share of a security trading in the secondary
market. For each Trust, this is the price at which one
share of a Trust trades on the stock exchange. If you
were to buy or sell shares, you would pay or receive
the market price.

NET ASSET VALUE (NAV): Net asset value is the total market value of all
securities and other assets held by a Trust, including
income accrued on its investments, minus any
liabilities including accrued expenses, divided by the
total number of outstanding common shares. It is the
underlying value of a single common share on a given
day. Net asset value for each Trust is calculated
weekly and published in BARRON'S on Saturday and THE
WALL STREET JOURNAL on Monday.

PREMIUM: When a Trust's market price is greater than its net
asset value, the Trust is said to be trading at a
premium.

PREREFUNDED BONDS: These securities are collateralized by U.S. Government
securities which are held in escrow and are used to pay
principal and interest on the tax-exempt issue and to
retire the bond in full at the date indicated,
typically at a premium to par.

BlackRock Closed-End Funds

Trustees
Ralph L. Schlosstein, CHAIRMAN*
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
Robert S. Kapito*
James Clayburn La Force, Jr.
Walter F. Mondale

Officers
Robert S. Kapito, PRESIDENT*
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Anne Ackerley, SECRETARY

Investment Advisor
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

Sub-Advisor
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171

----------
* Laurence D. Fink has resigned his positions as Trustee and Chairman of the
Board effective August 22, 2002, and will continue as Chairman and Chief
Executive Officer of BlackRock, Inc. and Chief Executive Officer of BlackRock
Advisors, Inc. The Board of Trustees elected Ralph L. Schlosstein as the new
Chairman of the Board, elected Robert S. Kapito as the new President of the
Trust and appointed Robert S. Kapito as a new Trustee of the Board effective
August 22, 2002.

Transfer Agent
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM

Auction Agent (Bond Trusts)
Bank of New York
5 Penn Plaza, 13th Floor
New York, NY 10001

Auction Agent (Income II Trusts)
Deutsche Bank Trust Company Americas
4 Albany Street
New York, NY 10006

Independent Auditors
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036

Legal Counsel - Independent Trustees
Debevoise & Plimpton
919 Third Avenue
New York, NY 10022

This report is for shareholder information. This is not a prospectus
intended for use in the purchase or sale of Trust shares. Statements and other
information contained in this report are as dated and are subject to change.

BlackRock Closed-End Funds
c/o BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

The Trusts will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders with
multiple accounts at the same address. This practice is commonly called
"householding" and is intended to reduce expenses and eliminate duplicate
mailings of shareholder documents. Mailings of your shareholder documents may be
householded indefinitely unless you instruct us otherwise. If you do not want
the mailing of these documents to be combined with those for other members of
your household, please contact the Trusts at (800) 227-7BFM.

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