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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-08217

Name of Fund: BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
MuniHoldings New York Insured Fund, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2010

Date of reporting period: 08/31/2010

Item 1 – Report to Stockholders




Annual Report

BlackRock Maryland Municipal Bond Trust (BZM)

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

BlackRock New Jersey Municipal Bond Trust (BLJ)

BlackRock New York Insured Municipal Income Trust (BSE)

BlackRock New York Municipal Bond Trust (BQH)

BlackRock New York Municipal Income Trust II (BFY)

BlackRock Virginia Municipal Bond Trust (BHV)

The Massachusetts Health & Education Tax-Exempt Trust (MHE)

August 31, 2010

Not FDIC Insured • No Bank Guarantee • May Lose Value



Table of Contents   
  Page 
Dear Shareholder  3 
Annual Report:   
Trust Summaries  4 
The Benefits and Risks of Leveraging  12 
Derivative Financial Instruments  13 
Financial Statements:   
Schedules of Investments  14 
Statements of Assets and Liabilities  36 
Statements of Operations  38 
Statements of Changes in Net Assets  40 
Financial Highlights  43 
Notes to Financial Statements  51 
Report of Independent Registered Public Accounting Firm  58 
Important Tax Information  59 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  60 
Automatic Dividend Reinvestment Plans  64 
Officers and Trustees  65 
Additional Information  68 

 

2 ANNUAL REPORT

AUGUST 31, 2010



Dear Shareholder

The global economic recovery continues, although global and US economic statistics show that the pace of economic growth has slowed. The sovereign debt

crisis in Europe, slowing growth in China and concerns over the possibility that the United States and other developed markets are heading for a double-dip

recession have all acted to depress investor sentiment. Despite broadening evidence of a slowdown in global economic activity, market volatility has normal-

ized from the extreme levels seen in recent months. In the United States, economic data continues to be mixed, but it is our view that the preponderance of

data suggests that the recovery is continuing. The critical issue for investors remains the question of whether the economy will experience a double-dip

recession. We are on the optimistic side of this debate and would point out that while the recovery has been slow, we have made significant progress.

Global equity markets have moved unevenly higher since bottoming out in early 2009 as investors were enticed by depressed valuations, improved

corporate earnings, and their desire for higher yields. Several significant downturns, however, have occurred — primarily as a result of mixed economic

data and concerns about the possibility of prolonged deflation (especially in Europe). As the period drew to a close, equity markets lost ground on weaker-

than-expected economic data, most notably from the United States. International equities posted negative returns on both a six- and 12-month basis while

US equities posted negative returns over the six months, but were still showing positive returns on a 12-month basis as the domestic economic recovery

had been more pronounced and credit-related issues held European markets down. Within the United States, smaller cap stocks continue to outperform

large caps year-to-date.

In fixed income markets, yields have fluctuated significantly over the past year as economic data has been mixed. Risk aversion and credit issues have kept

interest rates low and US Treasury yields have fallen significantly as investors favored “safe haven” assets. As the period drew to a close, Treasuries modestly

outperformed the spread sectors of the market (those driven by changes in credit risk). Corporate credit spreads benefited from the low rate environment

and high yield fixed income remains attractive due to low default rates and better-than-expected results on European bank stress tests. Meanwhile, tax-

exempt municipal bonds slightly outperformed US investment grade bonds on a 12-month basis, but underperformed year-to-date as investors rotated to

the relative safety of Treasuries.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with

the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an

“extended period.”

Against this backdrop, the major market averages posted the following returns:     
Total Returns as of August 31, 2010  6-month  12-month 
US large cap equities (S&P 500 Index)  (4.04)%  4.91% 
US small cap equities (Russell 2000 Index)  (3.60)  6.60 
International equities (MSCI Europe, Australasia, Far East Index)  (3.04)  (2.34) 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.07  0.14 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  11.49  11.58 
US investment grade bonds (Barclays Capital US Aggregate Bond Index)  5.81  9.18 
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)  5.42  9.78 
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  6.62  21.40 

 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

Although conditions have improved over the past couple of years, investors across the globe continue to face uncertainty about the future direction of

economic growth. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional

market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning

Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. We thank you for entrusting BlackRock with your

investments, and we look forward to your continued partnership in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3



Trust Summary as of August 31, 2010

BlackRock Maryland Municipal Bond Trust

Trust Overview

BlackRock Maryland Municipal Bond Trust’s (BZM) (the “Trust”) investment objective is to provide current income exempt from regular federal income
taxes and Maryland personal income taxes. The Trust seeks to achieve its investment objectives by investing primarily in municipal bonds exempt from
federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Maryland personal income taxes. The Trust
invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment.
The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 9.77% based on market price and 16.80% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 17.13% based on market price and 14.69% based
on NAV. All returns reflect reinvestment of dividends. The Trust's premium to NAV, which narrowed during the period, accounts for the difference between
performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust benefited from its
overall high duration (sensitivity to interest rates) as bond prices appreciated as yields declined. The Trust’s bias toward the longer end of the yield curve
contributed to performance as falling interest rates had a greater positive effect on longer dated issues. In addition, exposure to lower quality underlying
credits aided performance as credit spreads generally tightened over the period. Conversely, the Trust’s exposure to bonds structured with premium
coupons, short calls and/or short maturities detracted from performance as the shorter end of the yield curve underperformed longer dated issues.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE Amex  BZM 
Initial Offering Date  April 30, 2002 
Yield on Closing Market Price as of August 31, 2010 ($15.91)1  5.96% 
Tax Equivalent Yield2  9.17% 
Current Monthly Distribution per Common Share3  $0.079 
Current Annualized Distribution per Common Share3  $0.948 
Leverage as of August 31, 20104  36% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the
Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see
The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $15.91  $15.35  3.65%  $16.98  $13.73 
Net Asset Value  $15.23  $13.81  10.28%  $15.23  $13.81 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
County/City/Special District/School District  26%  25% 
Health  20  19 
Transportation  18  19 
Education  11  11 
Utilities  10  13 
Housing  8  6 
State  3  3 
Tobacco  3  3 
Corporate  1  1 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  28%  29% 
AA/Aa  9  17 
A  29  39 
BBB/Baa  23  6 
BB/Ba  2   
Not Rated  9  9 
5 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service 
(“Moody’s”) ratings.     

 

4 ANNUAL REPORT

AUGUST 31, 2010



Trust Summary as of August 31, 2010

BlackRock MuniHoldings New York Insured Fund, Inc.

Trust Overview

BlackRock MuniHoldings New York Insured Fund, Inc.’s (MHN) (the “Trust”) investment objective is to provide shareholders with current income exempt
from federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing, under
normal market conditions, at least 80% of its assets in investment grade New York municipal obligations exempt from federal income taxes (except that the
interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes ("New York Municipal Bonds"),
except at times when, in the judgment of its investment adviser, New York Municipal Bonds of sufficient quality and quantity are unavailable for investment
by the Trust. At all times, however, except during temporary defensive periods, the Trust invests at least 65% of its assets in New York Municipal Bonds. The
Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations that are investment grade quality at the time of investment
and at least 80% of its assets in municipal obligations that are covered by insurance guaranteeing the timely payment of principal at maturity and interest
when due. The Trust invests primarily in long-term municipal obligations with a maturity of more than ten years at the time of investment. The Trust may invest
directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 25.24% based on market price and 16.87% based on NAV. For the same period, the closed-
end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 21.21% based on market price and 14.13% based on NAV. All
returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between
performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s neutral-to-high
duration and low cash balance resulted in positive capital appreciation as interest rates declined. The Trust’s holdings of lower quality bonds outperformed
as credit spreads tightened, and long-term bonds benefited from declining yields. We purchased new issues structured to create greater potential for price
appreciation. The Trust’s exposure to the health and housing sectors and Puerto Rico credits added to performance. Conversely, the Trust’s holdings with
short maturities and/or call dates, detracted from performance as they underperformed longer-dated issues. Exposure to zero-coupon bonds detracted from
performance as investors favored current coupon bonds.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on New York Stock Exchange (“NYSE”)  MHN 
Initial Offering Date  September 19, 1997 
Yield on Closing Market Price as of August 31, 2010 ($15.17)1  6.17% 
Tax Equivalent Yield2  9.49% 
Current Monthly Distribution per Common Share3  $0.078 
Current Annualized Distribution per Common Share3  $0.936 
Leverage as of August 31, 20104  40% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010 was increased to $0.0795. The Yield on Closing Market Price, Current Monthly Distribution per
Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $15.17  $12.89  17.69%  $15.71  $12.64 
Net Asset Value  $15.09  $13.74  9.83%  $15.09  $13.74 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
Transportation  31%  27% 
County/City/Special District/School District  25  27 
State  12  11 
Utilities  10  10 
Education  7  7 
Corporate  5  7 
Health  4  5 
Housing  3  3 
Tobacco  3  3 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  42%  43% 
AA/Aa  20  18 
A  29  28 
BBB/Baa  3  8 
BB/Ba  4   
Not Rated6  2  3 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of August 31, 2010 and 2009, the market value of these
securities was $3,941,088 representing 1% and $18,918,142 representing 3%,
respectively, of the Trust’s long-term investments.

ANNUAL REPORT

AUGUST 31, 2010

5



Trust Summary as of August 31, 2010

BlackRock New Jersey Municipal Bond Trust

Trust Overview

BlackRock New Jersey Municipal Bond Trust’s (BLJ) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax
and New Jersey gross income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income
taxes (except that the interest may subject to the federal alternative minimum tax) and New Jersey gross income taxes. Under normal market conditions, the
Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such
securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 22.65% based on market price and 20.04% based on NAV. For the same period, the
closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 18.63% based on market price and 16.25% based on NAV. All
returns reflect reinvestment of dividends. The Trust's premium to NAV, which widened during the period, accounts for the difference between performance
based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings of health and housing
bonds with maturities of 20 years and longer contributed positively to performance as each of these sectors outperformed the broader market and bonds
with longer maturities benefited from declining yields. The Trust’s exposure to zero-coupon bonds detracted from performance as retail investors shunned
them in favor of current coupon bonds.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE Amex  BLJ 
Initial Offering Date  April 30, 2002 
Yield on Closing Market Price as of August 31, 2010 ($15.63)1  5.99% 
Tax Equivalent Yield2  9.22% 
Current Monthly Distribution per Common Share3  $0.078 
Current Annualized Distribution per Common Share3  $0.936 
Leverage as of August 31, 20104  36% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares
and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $15.63  $13.59  15.01%  $15.80  $13.59 
Net Asset Value  $15.23  $13.53  12.56%  $15.23  $13.53 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
State  23%  23% 
Transportation  16  16 
Health  16  23 
Housing  12  11 
County/City/Special District/School District  11  9 
Education  10  7 
Corporate  9  6 
Utilities  2  4 
Tobacco  1  1 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  27%  40% 
AA/Aa  28  18 
A  23  16 
BBB/Baa  10  14 
BB/Ba  2   
B  5  4 
Not Rated  56  8 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of August 31, 2010, the market value of these securities
was $1,013,550 representing 2% of the Trust’s long-term investments.

6 ANNUAL REPORT

AUGUST 31, 2010



Trust Summary as of August 31, 2010

BlackRock New York Insured Municipal Income Trust

Trust Overview

BlackRock New York Insured Municipal Income Trust’s (BSE) (the “Trust”) investment objective is to provide current income exempt from federal income
tax, including the alternative minimum tax, and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective
by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (including the alternative minimum tax) and New York
State and New York City personal income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations that
are investment grade quality at the time of investment and at least 80% of its assets in municipal obligations that are covered by insurance guaranteeing
the timely payment of principal at maturity and interest when due. The Trust may invest directly in such securities or synthetically through the use
of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 20.18% based on market price and 16.04% based on NAV. For the same period, the closed-
end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 21.21% based on market price and 14.13% based on NAV. All
returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between
performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s neutral-to-high
duration and low cash balance resulted in positive capital appreciation as interest rates declined. The Trust’s holdings of lower quality bonds outperformed
as credit spreads tightened, and long-term bonds benefited from declining yields. We purchased new issues structured to create greater potential for price
appreciation. The Trust’s exposure to the health and housing sectors and Puerto Rico credits added to performance. Conversely, the Trust’s holdings with
short maturities and/or call dates, detracted from performance as they underperformed longer-dated issues. Exposure to zero-coupon bonds detracted from
performance as investors favored current coupon bonds.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE  BSE 
Initial Offering Date  October 31, 2002 
Yield on Closing Market Price as of August 31, 2010 ($14.91)1  5.67% 
Tax Equivalent Yield2  8.72% 
Current Monthly Distribution per Common Share3  $0.0705 
Current Annualized Distribution per Common Share3  $0.8460 
Leverage as of August 31, 20104  35% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.0715. The Yield on Closing Market Price, Current Monthly Distribution per
Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in
the future.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:           
  8/31/10  8/31/09  Change  High  Low 
Market Price  $14.91  $13.15  13.38%  $14.99  $12.84 
Net Asset Value  $14.90  $13.61  9.48%  $14.92  $13.61 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
Transportation  26%  26% 
Education  24  22 
County/City/Special District/School District  18  19 
Health  13  14 
State  10  10 
Utilities  8  8 
Corporate  1  1 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  31%  30% 
AA/Aa  19  21 
A  30  29 
BBB/Baa  8  9 
BB/Ba  2   
Not Rated6  10  11 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of August 31, 2010 and August 31, 2009, the market
value of these securities was $9,329,772 representing 6% and $13,920,865 repre-
senting 10%, respectively, of the Trust’s long-term investments.

ANNUAL REPORT

AUGUST 31, 2010

7



Trust Summary as of August 31, 2010

BlackRock New York Municipal Bond Trust

Trust Overview

BlackRock New York Municipal Bond Trust’s (BQH) (the “Trust”) investment objective is to provide current income exempt from regular federal income taxes
and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds
exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City
personal income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at
the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 18.15% based on market price and 15.18% based on NAV. For the same period, the closed-
end Lipper New York Municipal Debt Funds category posted an average return of 16.45% based on market price and 15.62% based on NAV. All returns
reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between perform-
ance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings with short maturi-
ties and/or call dates, detracted from performance as they underperformed longer-dated issues. The Trust’s exposure to zero-coupon bonds detracted from
performance as investors favored current coupon bonds. Overall, the tax-exempt municipal market benefited from the Build America Bond Program, which
made the taxable market accessible to municipal issuers. This alleviated supply pressure in the tax-exempt space, which, coupled with increased investor
demand for municipals, resulted in a favorable supply-and-demand environment and strong performance. The Trust’s neutral-to-high duration (sensitivity to
interest rates) and low cash balance resulted in positive capital appreciation as declining interest rates caused a rally in bond prices. Many of the Trust’s
holdings began the period with depressed valuations resulting from their underperformance during the periods of dislocations in the credit market, which
positioned them for more upward price movement potential as the market continued its recovery. Among these holdings were lower quality bonds, which
outperformed as credit spreads tightened, and long-term bonds, which benefited from declining yields. We purchased new issues structured with the goal of
creating greater potential for price appreciation in response to declining interest rates. The Trust’s increased exposure to economically sensitive sectors and
education bonds and its holdings of Puerto Rico credits also aided performance.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE  BQH 
Initial Offering Date  April 30, 2002 
Yield on Closing Market Price as of August 31, 2010 ($15.79)1  6.12% 
Tax Equivalent Yield2  9.42% 
Current Monthly Distribution per Common Share3  $0.0805 
Current Annualized Distribution per Common Share3  $0.9660 
Leverage as of August 31, 20104  35% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.082. The Yield on Closing Market Price, Current Monthly Distribution per
Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in
the future.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $15.79  $14.32  10.27%  $17.05  $14.19 
Net Asset Value  $15.65  $14.56  7.49%  $15.65  $14.56 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
County/City/Special District/School District  20%  14% 
State  19  22 
Education  13  13 
Housing  12  13 
Corporate  10  8 
Transportation  8  12 
Utilities  7  9 
Tobacco  6  6 
Health  5  3 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  29%  28% 
AA/Aa  23  28 
A  28  17 
BBB/Baa  10  18 
BB/Ba  2  1 
B  7  7 
Not Rated  1  1 
5 Using the higher of S&P’s or Moody’s ratings.     

 

8 ANNUAL REPORT

AUGUST 31, 2010



Trust Summary as of August 31, 2010

BlackRock New York Municipal Income Trust II

Trust Overview

BlackRock New York Municipal Income Trust II’s (BFY) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax
and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds
exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City
personal income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at
the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 18.09% based on market price and 16.69% based NAV. For the same period, the closed-end
Lipper New York Municipal Debt Funds category posted an average return of 16.45% based on market price and 15.62% based on NAV. All returns reflect
reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance
based on price and performance based on NAV. The following discussion relates to performance based on NAV. Overall, the tax-exempt municipal market
benefited from the Build America Bond Program, which made the taxable market accessible to municipal issuers. This alleviated supply pressure in the tax-
exempt space, which, coupled with increased investor demand for municipals, resulted in a favorable supply-and-demand environment and strong perform-
ance. The Trust’s neutral-to-high duration (sensitivity to interest rates) and low cash balance resulted in positive capital appreciation as declining interest
rates caused a rally in bond prices during the period. Many of the Trust’s holdings began the period with depressed valuations resulting from their underper-
formance during the periods of dislocations in the credit market, which positioned them for more upward price movement potential as the market continued
its recovery. Among these holdings were lower quality bonds, which outperformed as credit spreads tightened, and long-term bonds, which benefited from
declining yields. We purchased a number of new issues structured with the goal of creating greater potential for price appreciation in response to declining
interest rates. The Trust’s increased exposure to economically sensitive sectors and higher education bonds and its holdings of Puerto Rico credits also
aided performance. Conversely, the Trust’s holdings on the shorter end of the yield curve, including cushion bonds with short call dates, pre-refunded bonds,
and other short maturity issues, detracted from performance as they underperformed longer-dated issues. Exposure to zero-coupon bonds detracted from
performance as investors favored current coupon bonds.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE Amex  BFY 
Initial Offering Date  July 30, 2002 
Yield on Closing Market Price as of August 31, 2010 ($15.48)1  6.36% 
Tax Equivalent Yield2  9.78% 
Current Monthly Distribution per Common Share3  $0.082 
Current Annualized Distribution per Common Share3  $0.984 
Leverage as of August 31, 20104  37% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.0835. The Yield on Closing Market Price, Current Monthly Distribution per Common
Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $15.48  $14.00  10.57%  $15.57  $13.63 
Net Asset Value  $15.33  $14.03  9.27%  $15.33  $14.03 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
County/City/Special District/School District  20%  22% 
Education  15  16 
Corporate  14  14 
Transportation  14  11 
Health  11  10 
Utilities  10  9 
Tobacco  6  8 
Housing  6  6 
State  4  4 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  24%  26% 
AA/Aa  24  27 
A  29  23 
BBB/Baa  11  10 
BB/Ba  3  1 
B  6  6 
Not Rated  3  76 
5 Using the higher of S&P’s or Moody’s ratings.     
6 The investment advisor has deemed certain of these non-rated securities to be of 
investment grade quality. As of August 31, 2009, the market value of these securities 
was $6,645,970 representing 6% of the Trust’s long-term investments.   

 

ANNUAL REPORT

AUGUST 31, 2010

9



Trust Summary as of August 31, 2010

BlackRock Virginia Municipal Bond Trust

Trust Overview

BlackRock Virginia Municipal Bond Trust’s (BHV) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax
and Virginia personal income taxes. The Trust seeks to achieve its investment objectives by investing primarily in municipal bonds exempt from federal
income taxes (except that the interest may be subject to the federal alternative minimum tax) and Virginia personal income taxes. The Trust invests, under
normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest
directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 15.02% based on market price and 14.15% based on NAV. For the same period, the
closed-end Lipper Other States Municipal Debt Funds category posted an average return of 17.13% based on market price and 14.69% based on NAV.
All returns reflect reinvestment of dividends. The Trust's premium to NAV, which widened during the period, accounts for the difference between perform-
ance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s exposure to bonds struc-
tured with premium coupons, short calls and/or short maturities detracted from performance as the shorter end of the yield curve underperformed longer
maturities in the declining interest rate environment. However, the Trust benefited from its overall high duration (sensitivity to interest rates) as bond prices
appreciated as yields declined. The Trust’s bias toward the longer end of the yield curve contributed to performance as falling interest rates had a greater
positive effect on longer dated issues. In addition, exposure to lower quality underlying credits aided performance as credit spreads generally tightened
over the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE Amex  BHV 
Initial Offering Date  April 30, 2002 
Yield on Closing Market Price as of August 31, 2010 ($18.77)1  5.21% 
Tax Equivalent Yield2  8.02% 
Current Monthly Distribution per Common Share3  $0.0815 
Current Annualized Distribution per Common Share3  $0.9780 
Leverage as of August 31, 20104  38% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The Monthly Distribution per Common Share, declared on September 1, 2010, was increased to $0.083. The Yield on Closing Market Price, Current Monthly Distribution per Common
Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $18.77  $17.50  7.26%  $20.45  $16.85 
Net Asset Value  $16.02  $15.05  6.45%  $16.02  $15.05 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
Health  17%  15% 
Housing  16  16 
Utilities  14  11 
Transportation  14  13 
County/City/Special District/School District  12  17 
Education  10  11 
Corporate  7  9 
State  5  5 
Tobacco  5  3 

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  31%  22% 
AA/Aa  30  37 
A  17  19 
BBB/Baa  9  7 
Not Rated  136  15 
5 Using the higher of S&P’s or Moody’s ratings.     
6 The investment advisor has deemed certain of these non-rated securities to be of 
investment grade quality. As of August 31, 2010, the market value of these securities 
was $2,770,588 representing 7% of the Trust’s long-term investments.   

 

10 ANNUAL REPORT

AUGUST 31, 2010



Trust Summary as of August 31, 2010

The Massachusetts Health & Education Tax-Exempt Trust

Trust Overview

The Massachusetts Health & Education Tax-Exempt Trust’s (MHE) (the “Trust”) investment objective is to provide shareholders with as high a level of current
income exempt from both regular federal income taxes and Massachusetts personal income taxes as is consistent with the preservation of shareholders’ capital.
The Trust seeks to achieve its investment objective by investing primarily in tax-exempt obligations (including bonds, notes and capital lease obligations) issued
on behalf of Massachusetts not-for-profit health and education institutions (“Massachusetts Health & Education Obligations”). The Trust invests, under normal
market conditions, at least 80% of its assets in Massachusetts Health & Education Obligations and at least 80% of its assets in obligations that are rated invest-
ment grade at the time of investment. Under normal market conditions, the Trust invests its assets so that at least 80% of the income generated by the Trust is
exempt from federal income taxes, including federal alternative minimum tax, and Massachusetts personal income taxes. The Trust invests primarily in long term
municipal obligations with maturities of more than ten years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

For the 12 months ended August 31, 2010, the Trust returned 24.37% based on market price and 18.40% based on NAV. For the same period, the closed-
end Lipper Other States Municipal Debt Funds category posted an average return of 17.13% based on market price and 14.69% based on NAV. All returns
reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between perform-
ance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings of health and edu-
cation bonds with maturities of 20 years and longer contributed positively to performance as each of these sectors outperformed the broader market and
bonds with longer maturities benefited from declining yields. The Trust’s exposure to pre-refunded bonds with maturities between two and three years
detracted from performance as securities on the shorter end of the yield curve underperformed longer-dated issues.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information   
Symbol on NYSE Amex  MHE 
Initial Offering Date  July 23, 1993 
Yield on Closing Market Price as of August 31, 2010 ($13.98)1  6.01% 
Tax Equivalent Yield2  9.25% 
Current Monthly Distribution per Common Share3  $0.07 
Current Annualized Distribution per Common Share3  $0.84 
Leverage as of August 31, 20104  38% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and
TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

The table below summarizes the changes in the Trust’s market price and NAV per share:

  8/31/10  8/31/09  Change  High  Low 
Market Price  $13.98  $12.00  16.50%  $14.33  $11.45 
Net Asset Value  $13.52  $12.19  10.91%  $13.52  $12.19 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

Sector Allocations     
  8/31/10  8/31/09 
Education  50%  62% 
Health  30  24 
State  8  10 
Housing  4  3 
Utilities  3   
Corporate  3  1 
County/City/Special District/School District  2   

 

Credit Quality Allocations5     
  8/31/10  8/31/09 
AAA/Aaa  19%  26% 
AA/Aa  25  15 
A  34  34 
BBB/Baa  14  12 
B    1 
Not Rated6  8  12 

 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of August 31, 2010 and 2009, the market value of these
securities was $2,061,578 representing 4% and $2,117,414 representing 5%,
respectively, of the Trust’s long-term investments.

ANNUAL REPORT

AUGUST 31, 2010

11



The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the yield and NAV of
their Common Shares. However, these objectives cannot be achieved in all
interest rate environments.

To leverage, the Trusts issue Preferred Shares, which pay dividends at pre-
vailing short-term interest rates, and invest the proceeds in long-term
municipal bonds. In general, the concept of leveraging is based on the
premise that the financing cost of assets to be obtained from leverage will
be based on short-term interest rates, which normally will be lower than
the income earned by each Trust on its longer-term portfolio investments. To
the extent that the total assets of each Trust (including the assets obtained
from leverage) are invested in higher-yielding portfolio investments, each
Trust’s Common Shareholders will benefit from the incremental net income.

To illustrate these concepts, assume a Trust’s Common Shares capitaliza-
tion is $100 million and it issues Preferred Shares for an additional $50
million, creating a total value of $150 million available for investment in
long-term municipal bonds. If prevailing short-term interest rates are 3%
and long-term interest rates are 6%, the yield curve has a strongly positive
slope. In this case, the Trust pays dividends on the $50 million of Preferred
Shares based on the lower short-term interest rates. At the same time, the
securities purchased by the Trust with assets received from Preferred
Shares issuance earn income based on long-term interest rates. In this
case, the dividends paid to Preferred Shareholders are significantly lower
than the income earned on the Trust’s long-term investments, and therefore
the Common Shareholders are the beneficiaries of the incremental net
income.

If short-term interest rates rise, narrowing the differential between short-
term and long-term interest rates, the incremental net income pickup on
the Common Shares will be reduced or eliminated completely. Furthermore,
if prevailing short-term interest rates rise above long-term interest rates of
6%, the yield curve has a negative slope. In this case, the Trust pays divi-
dends on the higher short-term interest rates whereas the Trust’s total port-
folio earns income based on lower long-term interest rates.

Furthermore, the value of the Trusts’ portfolio investments generally varies
inversely with the direction of long-term interest rates, although other
factors can influence the value of portfolio investments. In contrast, the
redemption value of the Trusts’ Preferred Shares does not fluctuate in rela-
tion to interest rates. As a result, changes in interest rates can influence the
Trusts’ NAV positively or negatively in addition to the impact on Trust per-
formance from leverage from Preferred Shares discussed above.

The Trusts may also leverage their assets through the use of tender option
bond (“TOB”) programs, as described in Note 1 of the Notes to Financial
Statements. TOB investments generally will provide the Trusts with economic
benefits in periods of declining short-term interest rates, but expose the
Trusts to risks during periods of rising short-term interest rates similar to
those associated with Preferred Shares issued by the Trusts, as described
above. Additionally, fluctuations in the market value of municipal bonds
deposited into the TOB trust may adversely affect each Trust’s NAV
per share.

The use of leverage may enhance opportunities for increased income to the
Trusts and Common Shareholders, but as described above, it also creates
risks as short- or long-term interest rates fluctuate. Leverage also will gen-
erally cause greater changes in each Trust’s NAV, market price and dividend
rate than a comparable portfolio without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, each Trust’s net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, the Trusts’ net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to Common Shareholders will be reduced. Each Trust
may be required to sell portfolio securities at inopportune times or at dis-
tressed values in order to comply with regulatory requirements applicable
to the use of leverage or as required by the terms of leverage instruments,
which may cause a Trust to incur losses. The use of leverage may limit each
Trust’s ability to invest in certain types of securities or use certain types of
hedging strategies, such as in the case of certain restrictions imposed by
ratings agencies that rate preferred shares issued by the Trusts. Each Trust
will incur expenses in connection with the use of leverage, all of which are
borne by Common Shareholders and may reduce income to the
Common Shares.

Under the Investment Company Act of 1940, the Trusts are permitted to
issue Preferred Shares in an amount of up to 50% of their total managed
assets at the time of issuance. Under normal circumstances, each Trust
anticipates that the total economic leverage from Preferred Shares and/or
TOBs will not exceed 50% of its total managed assets at the time such
leverage is incurred. As of August 31, 2010, the Trusts had economic
leverage from Preferred Shares and/or TOBs as a percentage of their total
managed assets as follows:

  Percent of 
  Leverage 
BZM  36% 
MHN  40% 
BLJ  36% 
BSE  35% 
BQH  35% 
BFY  37% 
BHV  38% 
MHE  38% 

 

12 ANNUAL REPORT

AUGUST 31, 2010



Derivative Financial Instruments

The Trusts may invest in various derivative instruments, including financial
futures contracts, as specified in Note 2 of the Notes to Financial State-
ments, which may constitute forms of economic leverage. Such instruments
are used to obtain exposure to a market without owning or taking physical
custody of securities or to hedge market and/or interest rate risks. Such
derivative instruments involve risks, including the imperfect correlation
between the value of a derivative instrument and the underlying asset,
possible default of the counterparty to the transaction or illiquidity of the
derivative instrument. The Trusts’ ability to successfully use a derivative

instrument depends on the investment advisor’s ability to accurately
predict pertinent market movements, which cannot be assured. The use
of derivative instruments may result in losses greater than if they had not
been used, may require a Trust to sell or purchase portfolio securities at
inopportune times or for distressed values, may limit the amount of appre-
ciation a Trust can realize on an investment, may result in lower dividends
paid to shareholders or may cause a Trust to hold a security that it might
otherwise sell. The Trusts’ investments in these instruments are discussed in
detail in the Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

13



Schedule of Investments August 31, 2010

BlackRock Maryland Municipal Bond Trust (BZM)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Maryland — 114.7%       
Corporate — 1.0%       
Maryland EDC, Refunding RB, Potomac Electric       
Power Co., 6.20%, 9/01/22  $ 250  $ 296,230 
County/City/Special District/School District — 38.5%     
City of Annapolis Maryland, Tax Allocation Bonds,       
Park Place Project, Series A, 5.35%, 7/01/34    494  440,910 
City of Baltimore Maryland, Special Tax Bonds, Special     
Obligation, Harborview Lot No. 2, 6.50%, 7/01/31    993  998,551 
County of Anne Arundel Maryland, RB, Community       
College Project, 5.25%, 9/01/28    1,870  1,921,519 
County of Baltimore Maryland, GO, Metropolitan       
District (a):       
67th Issue, 5.00%, 6/01/11    2,000  2,092,080 
68th Issue, 5.00%, 8/01/12    2,000  2,178,020 
County of Frederick Maryland, Special Tax Bonds,       
Urbana Community Development Authority,       
6.63%, 7/01/25    1,000  1,000,390 
County of Montgomery Maryland, RB, Metrorail       
Garage Projects:       
5.00%, 6/01/23    500  533,005 
5.00%, 6/01/24    1,435  1,529,725 
County of Prince George’s Maryland, SO, National       
Harbor Project, 5.20%, 7/01/34    1,500  1,380,796 
      12,074,996 
Education — 16.0%       
Maryland Health & Higher Educational Facilities       
Authority, RB:       
Board of Child Care, 5.38%, 7/01/32    2,000  2,025,060 
Loyola College Issue, 5.00%, 10/01/39    2,000  2,000,500 
Maryland Industrial Development Financing Authority,       
RB, Our Lady of Good Counsel School, Series A,       
6.00%, 5/01/35    1,000  1,000,300 
      5,025,860 
Health — 29.3%       
County of Baltimore Maryland, Refunding RB, Oak Crest     
Village Inc. Facility, Series A, 5.00%, 1/01/37    910  853,034 
County of Howard Maryland, Refunding RB, Vantage       
House Facility, Series A, 5.25%, 4/01/33    500  401,400 
Gaithersburg Maryland, Refunding RB, Asbury Maryland     
Obligation, Series B, 6.00%, 1/01/23    250  267,867 
Maryland Health & Higher Educational Facilities       
Authority, RB:       
Anne Arundel Health System, 5.00%, 7/01/40    1,000  1,033,110 
Carroll County General Hospital, 6.00%, 7/01/37  1,990  2,034,437 
Peninsula Regional Medical Center, 5.00%, 7/01/36  1,000  1,028,960 
Union Hospital of Cecil County Issue,       
5.63%, 7/01/32    2,000  2,032,700 

 

    Par   
Municipal Bonds    (000)  Value 
Maryland (concluded)       
Health (concluded)       
Maryland Health & Higher Educational Facilities Authority,     
Refunding RB:       
Doctor’s Community Hospital, 5.75%, 7/01/38  $ 500  $ 499,955 
University of Maryland Medical System,       
5.13%, 7/01/39    1,000  1,038,430 
      9,189,893 
Housing — 5.4%       
Maryland Community Development Administration, RB:     
AMT, 5.10%, 9/01/37    1,000  1,019,380 
Residential, Series A, 5.05%, 9/01/39    500  517,285 
Residential, Series B, 4.75%, 9/01/39    150  153,001 
      1,689,666 
Transportation — 9.8%       
Maryland EDC, RB:       
Term Project, Series B, 5.75%, 6/01/35    500  523,505 
Transportation Facilities Project, Series A,       
5.75%, 6/01/35    500  523,505 
Maryland State Transportation Authority, RB, Baltimore/     
Washington International Airport, Series B, AMT       
(AMBAC), 5.13%, 3/01/24    2,000  2,036,060 
      3,083,070 
Utilities — 14.7%       
City of Baltimore Maryland, Refunding RB, Wastewater     
Projects, Series A (NPFGC):       
5.20%, 7/01/32    2,500  2,570,575 
5.13%, 7/01/42    2,000  2,030,780 
      4,601,355 
Total Municipal Bonds in Maryland      35,961,070 
District of Columbia — 3.5%       
Transportation — 3.5%       
Washington Metropolitan Area Transit Authority, RB,       
Transit, Series A, 5.13%, 7/01/32    1,000  1,093,090 
Total Municipal Bonds in the District of Columbia      1,093,090 
Guam — 0.8%       
County/City/Special District/School District — 0.8%     
Territory of Guam, RB, Section 30, Series A,       
5.63%, 12/01/29    250  265,240 
Total Municipal Bonds in Guam      265,240 

 

Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the  BHAC  Berkshire Hathaway Assurance Corp.  HRB  Housing Revenue Bonds 
Schedules of Investments, the names and descriptions of  BOCES  Board of Cooperative Educational Services  IDA  Industrial Development Authority 
many of the securities have been abbreviated according  CAB  Capital Appreciation Bonds  LRB  Lease Revenue Bonds 
to the following list:  CIFG  CDC IXIS Financial Guaranty  MRB  Mortgage Revenue Bonds 
    EDA  Economic Development Authority  NPFGC  National Public Finance Guarantee Corp. 
ACA  American Capital Access Corp.  EDC  Economic Development Corp.  PILOT  Payment in Lieu of Taxes 
AGC  Assured Guaranty Corp.  ERB  Economic Revenue Bonds  RB  Revenue Bonds 
AGM  Assured Guaranty Municipal Corp.  FGIC  Financial Guaranty Insurance Co.  SBPA  Stand-by Bond Purchase Agreement 
AMBAC  American Municipal Bond Assurance Corp.  FHA  Federal Housing Administration  S/F  Single-Family 
AMT  Alternative Minimum Tax (subject to)  GO  General Obligation Bonds  SO  Special Obligation 
    HDA  Housing Development Authority  SONYMA  State of New York Mortgage Agency 
See Notes to Financial Statements.  HFA  Housing Finance Agency  VRDN  Variable Rate Demand Notes 

 

14 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (concluded)

BlackRock Maryland Municipal Bond Trust (BZM)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Multi-State — 7.1%       
Housing — 7.1%       
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (b)(c)  $ 2,000  $ 2,209,280 
Total Municipal Bonds in Multi-State      2,209,280 
Puerto Rico — 12.5%       
State — 5.2%       
Commonwealth of Puerto Rico, GO, Refunding, Public       
Improvement, Series A-4 (AGM), 5.25%, 7/01/30    130  139,984 
Puerto Rico Public Buildings Authority, Refunding RB,       
Government Facilities, Series D, 5.38%, 7/01/33    350  353,346 
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 6.38%, 8/01/39    1,000  1,125,470 
      1,618,800 
Tobacco — 4.2%       
Children’s Trust Fund, Refunding RB, Asset-Backed,       
5.50%, 5/15/39    1,500  1,305,855 
Transportation — 3.1%       
Puerto Rico Highway & Transportation Authority,       
Refunding RB, Series CC (AGM), 5.25%, 7/01/36    895  982,351 
Total Municipal Bonds in Puerto Rico      3,907,006 
Total Municipal Bonds — 138.6%      43,435,686 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (d)       
Maryland — 10.3%       
Transportation — 10.3%       
Maryland State Transportation Authority, RB,       
Transportation Facility Project (AGM), 5.00%, 7/01/41  3,000  3,250,230 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 10.3%      3,250,230 
Total Long-Term Investments       
(Cost — $45,110,442) — 148.9%      46,685,916 
Short-Term Securities    Shares   
FFI Institutional Tax-Exempt Fund, 0.22% (e)(f)  1,846,050  1,846,050 
Total Short-Term Securities       
(Cost — $1,846,050) — 5.9%      1,846,050 
Total Investments (Cost — $46,956,492*) — 154.8%      48,531,966 
Other Assets Less Liabilities — 1.0%      318,970 
Liability for Trust Certificates, Including Interest       
Expense and Fees Payable — (4.8)%      (1,500,731) 
Preferred Shares, at Redemption Value — (51.0)%      (16,001,002) 
Net Assets Applicable to Common Shares — 100.0%      $ 31,349,203 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 45,374,462 
Gross unrealized appreciation  $ 2,010,522 
Gross unrealized depreciation  (353,018) 
Net unrealized appreciation  $ 1,657,504 

 

(a) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(c) Security represents a beneficial interest in a trust. The collateral deposited into the
trust is federally tax-exempt revenue bonds issued by various state or local govern-
ments, or their respective agencies or authorities. The security is subject to remarket-
ing prior to its stated maturity.
(d) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(e) Investments in companies considered to be an affiliate of the Trust during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
FFI Institutional         
Tax-Exempt Fund  1,200,364  645,686  1,846,050  $ 1,421 

 

(f) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes, and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investment1      $46,685,916    $46,685,916 
Short-Term           
Securities  $ 1,846,050      1,846,050 
Total  $ 1,846,050  $46,685,916    $48,531,966 

 

1 See above Schedule of Investments for values in each sector.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

15



Schedule of Investments August 31, 2010

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New York — 114.0%     
Corporate — 7.9%     
New York City Industrial Development Agency,     
Refunding RB, Terminal One Group Association     
Project, AMT, 5.50%, 1/01/24 (a)  $ 1,500  $ 1,560,945 
New York Liberty Development Corp., RB,     
Goldman Sachs Headquarters, 5.25%, 10/01/35  1,500  1,577,940 
New York State Energy Research & Development     
Authority, RB, Lilco Project, Series A (NPFGC),     
5.15%, 3/01/16  2,000  2,059,240 
New York State Energy Research & Development     
Authority, Refunding RB, Series A:     
Brooklyn Union Gas/Keyspan, AMT (FGIC),     
4.70%, 2/01/24  7,340  7,576,935 
Central Hudson Gas (AMBAC), 5.45%, 8/01/27  6,000  6,019,380 
Suffolk County Industrial Development Agency New York,     
RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27  4,355  4,385,616 
Suffolk County Industrial Development Agency New York,     
Refunding RB, Ogden Martin System Huntington,     
AMT (AMBAC):     
6.00%, 10/01/10  4,660  4,679,432 
6.15%, 10/01/11  5,000  5,263,550 
6.25%, 10/01/12  3,530  3,849,253 
    36,972,291 
County/City/Special District/School District — 33.4%     
Amherst Development Corp., RB, University at Buffalo     
Foundation Faculty-Student Housing Corp., Series A     
(AGM), 4.63%, 10/01/40  4,975  5,071,316 
City of New York New York, GO, Series B (NPFGC),     
5.75%, 8/01/13  540  546,556 
City of Yonkers New York, GO, Series A (FGIC),     
5.75%, 10/01/10 (b)  1,795  1,821,171 
Hudson Yards Infrastructure Corp., RB, Series A:     
(FGIC), 5.00%, 2/15/47  10,250  10,260,352 
(NPFGC), 4.50%, 2/15/47  14,505  13,884,041 
New York City Health & Hospital Corp., Refunding RB,     
Health System, Series A (NPFGC), 5.25%, 2/15/17  2,000  2,005,760 
New York City Industrial Development Agency, RB, PILOT:     
CAB, Yankee Stadium (AGC), 6.51%, 3/01/39 (c)  1,380  299,736 
Queens Baseball Stadium (AGC), 6.38%, 1/01/39  800  905,000 
Queens Baseball Stadium (AMBAC),     
5.00%, 1/01/31  3,500  3,429,755 
Queens Baseball Stadium (AMBAC),     
5.00%, 1/01/36  12,740  12,023,248 
Queens Baseball Stadium (AMBAC),     
5.00%, 1/01/39  4,000  3,752,360 
Queens Baseball Stadium (AMBAC),     
5.00%, 1/01/46  7,050  6,575,253 
Yankee Stadium (FGIC), 5.00%, 3/01/46  9,500  9,509,310 
Yankee Stadium (NPFGC), 5.00%, 3/01/36  3,450  3,494,574 
New York City Transitional Finance Authority, RB:     
Fiscal 2008, Series S-1, 4.50%, 1/15/38  1,510  1,525,991 
Fiscal 2009, Series S-1 (AGC), 5.50%, 7/15/38  4,000  4,481,840 
Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/39  1,250  1,408,750 
Future Tax Secured, Series C (FGIC),     
5.00%, 2/01/33  10,000  10,584,300 
Future Tax Secured, Series E (NPFGC),     
5.25%, 2/01/22  2,500  2,719,225 
Series B (NPFGC), 5.50%, 2/01/11 (b)  1,840  1,896,672 
Series B (NPFGC), 5.50%, 2/01/13  110  113,393 
Series S-2 (AGM), 5.00%, 1/15/37  3,750  3,946,012 
Series S-2 (NPFGC), 4.25%, 1/15/34  4,830  4,858,207 
New York City Transitional Finance Authority,     
Refunding RB, Series A (FGIC), 5.00%, 11/15/26  1,000  1,068,840 

 

    Par   
Municipal Bonds    (000)  Value 
New York (continued)       
County/City/Special District/School District (concluded)     
New York Convention Center Development Corp., RB,       
Hotel Unit Fee Secured (AMBAC):       
5.00%, 11/15/30  $ 2,100  $ 2,161,845 
5.00%, 11/15/35    20,500  20,883,965 
5.00%, 11/15/44    2,055  2,088,723 
Oneida-Herkimer Solid Waste Management Authority       
New York, Refunding RB (AGM), 5.50%, 4/01/13    1,800  2,016,612 
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),     
5.00%, 10/15/32    14,175  15,453,727 
Syracuse Industrial Development Agency New York, RB,     
Carousel Center Project, Series A, AMT (Syncora),       
5.00%, 1/01/36    7,750  6,559,135 
      155,345,669 
Education — 10.8%       
City of Troy New York, Refunding RB, Rensselaer       
Polytechnic, Series A, 5.13%, 9/01/40    1,050  1,087,821 
Madison County Industrial Development Agency       
New York, RB, Colgate University Project, Series A       
(AMBAC), 5.00%, 7/01/30    4,000  4,215,320 
New York City Industrial Development Agency,       
Refunding RB:       
Nightingale-Bamford School (AMBAC),       
5.25%, 1/15/17    1,200  1,299,984 
Polytechnic University Project (ACA),       
5.25%, 11/01/37    2,160  2,084,141 
New York City Transitional Finance Authority, RB,       
Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33    3,000  3,399,450 
New York State Dormitory Authority, RB:       
Mount Sinai School of Medicine, 5.13%, 7/01/39  3,090  3,179,332 
Mount Sinai School of Medicine at NYU (NPFGC),     
5.00%, 7/01/35    6,100  6,212,667 
New York University, Series 1 (AMBAC),       
5.50%, 7/01/40    3,500  4,340,525 
Siena College, 5.13%, 7/01/39    1,345  1,388,793 
Schenectady County Industrial Development Agency,       
Refunding RB, Union College Project, Series A       
(AMBAC), 5.63%, 7/01/11 (b)    3,000  3,196,650 
Trust for Cultural Resources, RB, Carnegie Hall, Series A:     
4.75%, 12/01/39    3,150  3,252,186 
5.00%, 12/01/39    1,850  1,946,404 
Trust for Cultural Resources, Refunding RB, American       
Museum of Natural History, Series A (NPFGC),       
5.00%, 7/01/36    6,800  7,304,968 
Westchester County Industrial Development Agency       
New York, RB, Purchase College Foundation Housing,     
Series A (AMBAC), 5.75%, 12/01/31    7,000  7,134,050 
      50,042,291 
Health — 6.7%       
New York City Industrial Development Agency, RB,       
Royal Charter, New York Presbyterian (AGM),       
5.75%, 12/15/29    7,965  8,529,081 
New York State Dormitory Authority, MRB, Montefiore       
Hospital (NPFGC), 5.00%, 8/01/33    1,000  1,025,020 
New York State Dormitory Authority, RB:       
Gustavus Adolphus Child & Family Services, Inc.,     
Series B (AMBAC), 5.50%, 7/01/18    1,852  1,867,242 
Hudson Valley Hospital (BHAC), 5.00%, 8/15/36  5,000  5,338,450 
New York & Presbyterian Hospital (AGM),       
5.25%, 2/15/31    1,500  1,593,315 
New York & Presbyterian Hospital (AGM),       
5.00%, 8/15/36    4,000  4,115,440 
New York State Rehabilitation Association, Series A     
(CIFG), 5.25%, 7/01/19    1,180  1,231,779 

 

See Notes to Financial Statements.

16 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (continued)

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York (continued)       
Health (concluded)       
New York State Dormitory Authority, RB (concluded):       
New York State Rehabilitation Association, Series A     
(CIFG), 5.13%, 7/01/23  $ 1,000  $ 1,022,260 
North Shore-Long Island Jewish Health System,       
Series A, 5.50%, 5/01/37    1,825  1,923,842 
New York State Dormitory Authority, Refunding RB:       
St. Charles Hospital & Rehabilitation Center,       
Series A (NPFGC), 5.63%, 7/01/12    3,400  3,427,540 
St. Luke’s Roosevelt Hospital (FHA), 4.90%, 8/15/31  1,000  1,009,700 
      31,083,669 
Housing — 4.2%       
New York City Housing Development Corp., RB, AMT:       
Series C, 5.00%, 11/01/26    1,250  1,276,713 
Series C, 5.05%, 11/01/36    2,000  2,007,080 
Series H-1, 4.70%, 11/01/40    1,000  964,320 
New York Mortgage Agency, RB, Series 145, AMT,       
5.13%, 10/01/37    1,000  1,017,550 
New York Mortgage Agency, Refunding RB:       
Homeowner Mortgage, Series 67 AMT (NPFGC),       
5.70%, 10/01/17    2,140  2,143,296 
Homeowner Mortgage, Series 83 (NPFGC),       
5.55%, 10/01/27    2,100  2,101,953 
Homeowner Mortgage, Series 97, AMT,       
5.50%, 4/01/31    840  843,116 
Series 133, AMT, 4.95%, 10/01/21    685  703,981 
Series 143, AMT, 4.90%, 10/01/37    965  963,524 
Series 143, AMT (NPFGC), 4.85%, 10/01/27    2,000  2,028,040 
Series 82, AMT (NPFGC), 5.65%, 4/01/30    825  825,561 
New York State HFA, RB, St. Philip’s Housing, Series A,     
AMT (Fannie Mae), 4.65%, 11/15/38    1,000  1,005,670 
Yonkers Economic Development Corp., Refunding RB,     
Riverview II (Freddie Mac), 4.50%, 5/01/25    1,500  1,534,170 
Yonkers Industrial Development Agency New York, RB,     
Monastery Manor Associates LP Project, AMT       
(SONYMA), 5.25%, 4/01/37    2,000  2,021,800 
      19,436,774 
State — 10.6%       
New York State Dormitory Authority, RB:       
Master BOCES Program Lease (AGC),       
4.75%, 8/15/24    1,090  1,193,953 
Master BOCES Program Lease (AGC),       
5.00%, 8/15/28    250  271,008 
Mental Health Facilities, Series B,       
5.25%, 2/15/14 (b)    1,550  1,765,249 
Mental Health Services Facilities Improvement,       
Series B (AGM), 5.00%, 2/15/33    4,500  4,803,975 
Mental Health Services Facilities, Series C, AMT       
(AGM), 5.40%, 2/15/33    5,650  5,856,733 
School Districts Financing Program, Series A (AGM),     
5.00%, 10/01/35    450  473,814 
School Districts Financing Program, Series C (AGM),     
5.00%, 10/01/37    2,500  2,627,600 
School Districts Financing Program, Series D       
(NPFGC), 5.00%, 10/01/30    1,240  1,263,262 
School Districts Financing Program, Series E       
(NPFGC), 5.75%, 10/01/30    6,900  7,427,781 
New York State Dormitory Authority, Refunding RB:       
School Districts Financing Program, Series A (AGM),     
5.00%, 10/01/35    5,000  5,296,200 
Secured Hospital, North General Hospital (Syncora),     
5.75%, 2/15/17    2,000  2,084,560 

 

    Par   
Municipal Bonds    (000)  Value 
New York (continued)       
State (concluded)       
New York State Thruway Authority, RB:       
Second General, Series B, 5.00%, 4/01/27  $ 1,000  $ 1,099,940 
Series A (AMBAC), 5.00%, 4/01/26    8,700  9,439,065 
New York State Urban Development Corp., RB (NPFGC):     
Personal Income Tax, Series C-1,       
5.00%, 3/15/13 (b)    3,000  3,351,000 
State Personal Income Tax, State Facilities,       
Series A-1, 5.00%, 3/15/29    2,000  2,119,600 
      49,073,740 
Tobacco — 4.8%       
Tobacco Settlement Financing Corp. New York, RB,       
Asset-Backed, Series A-1 (AMBAC):       
5.25%, 6/01/20    5,000  5,457,550 
5.25%, 6/01/21    13,275  14,505,194 
5.25%, 6/01/22    2,000  2,187,020 
      22,149,764 
Transportation — 23.7%       
Hudson Yards Infrastructure Corp., RB:       
(AGC), 5.00%, 2/15/47    7,370  7,616,821 
Series A (AGC), 5.00%, 2/15/47    305  315,215 
Series A (AGM), 5.00%, 2/15/47    8,800  9,094,712 
Metropolitan Transportation Authority, RB:       
Series 2008C, 6.50%, 11/15/28    6,015  7,211,263 
Transportation, Series A (NPFGC), 5.00%, 11/15/32  1,100  1,124,079 
Metropolitan Transportation Authority, Refunding RB:       
Series A, 5.13%, 1/01/29    1,150  1,213,595 
Series A (NPFGC), 5.25%, 11/15/31    2,500  2,661,475 
Series C (AGM), 4.75%, 7/01/12 (b)    2,535  2,743,022 
Transportation, Series F (NPFGC),       
5.25%, 11/15/12 (b)    6,300  6,976,872 
New York State Thruway Authority, RB:       
Series F (AMBAC), 5.00%, 1/01/30    5,000  5,225,200 
Series G (AGM), 4.75%, 1/01/29    1,250  1,306,975 
Series G (AGM), 4.75%, 1/01/30    1,000  1,039,750 
Series G (AGM), 5.00%, 1/01/32    5,225  5,480,398 
Niagara Falls Bridge Commission, Refunding RB,       
Bridge System, Series A (AGC), 4.00%, 10/01/19    2,600  2,909,062 
Port Authority of New York & New Jersey, RB:       
Consolidated, 116th Series, 4.13%, 9/15/32    2,685  2,723,852 
Consolidated, 161st Series, 4.50%, 10/15/37    1,000  1,029,380 
Special Project, JFK International Air Terminal,       
Series 6, AMT (NPFGC), 6.25%, 12/01/11    3,000  3,092,400 
Special Project, JFK International Air Terminal,       
Series 6, AMT (NPFGC), 6.25%, 12/01/15    7,830  8,475,114 
Special Project, JFK International Air Terminal,       
Series 6, AMT (NPFGC), 5.90%, 12/01/17    4,000  4,022,720 
Special Project, JFK International Air Terminal,       
Series 6, AMT (NPFGC), 5.75%, 12/01/22    26,725  26,821,477 
Triborough Bridge & Tunnel Authority, RB:       
Sub-Series A (NPFGC), 5.25%, 11/15/30    6,000  6,549,780 
Subordinate Bonds (AMBAC), 5.00%, 11/15/28    2,465  2,616,893 
      110,250,055 
Utilities — 11.9%       
Long Island Power Authority, RB, Series A (AMBAC),       
5.00%, 9/01/29    3,000  3,124,530 
Long Island Power Authority, Refunding RB:       
General, Series A (AGC), 6.00%, 5/01/33    1,500  1,763,445 
General, Series B (AGM), 5.00%, 12/01/35    3,500  3,687,180 
Series A (AGC), 5.75%, 4/01/39    1,000  1,144,010 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

17



Schedule of Investments (continued)

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New York (concluded)     
Utilities (concluded)     
New York City Municipal Water Finance Authority, RB:     
Series A (AMBAC), 5.00%, 6/15/35  $ 3,500  $ 3,721,655 
Series A (NPFGC), 5.75%, 6/15/11 (b)  23,000  24,001,880 
Series DD (AGM), 4.50%, 6/15/39  2,500  2,539,275 
New York City Municipal Water Finance Authority,     
Refunding RB:     
Fiscal 2004, Series C (NPFGC), 5.00%, 6/15/35  1,000  1,063,330 
Series A (AGM), 4.25%, 6/15/39  2,200  2,216,412 
Series A (NPFGC), 5.13%, 6/15/34  1,250  1,320,950 
Series F (AGM), 5.00%, 6/15/29  500  505,840 
New York State Environmental Facilities Corp., RB,     
Long Island Water Corp. Project, Series A, AMT     
(NPFGC), 4.90%, 10/01/34  6,000  5,999,760 
New York State Environmental Facilities Corp.,     
Refunding RB, Spring Valley Water Co., Series B     
(AMBAC), 6.15%, 8/01/24  4,400  4,420,064 
    55,508,331 
Total Municipal Bonds in New York    529,862,584 
Guam — 1.5%     
Transportation — 1.0%     
Guam International Airport Authority, Refunding RB,     
General, Series C, AMT (NPFGC):     
5.25%, 10/01/21  3,700  3,703,626 
5.25%, 10/01/22  1,050  1,050,871 
    4,754,497 
Utilities — 0.5%     
Guam Power Authority, Refunding RB, Series A (AGM),     
5.00%, 10/01/37  2,400  2,463,024 
Total Municipal Bonds in Guam    7,217,521 
Puerto Rico — 18.1%     
County/City/Special District/School District — 0.8%     
Puerto Rico Sales Tax Financing Corp., RB, First     
Sub-Series A (AGM), 5.00%, 8/01/40  1,905  1,993,773 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
CAB, Series A (NPFGC), 5.77%, 8/01/41 (c)  11,000  1,841,730 
    3,835,503 
Housing — 0.7%     
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,     
5.13%, 12/01/27  3,000  3,119,430 
State — 7.4%     
Commonwealth of Puerto Rico, GO, Refunding:     
Public Improvement, Series A (NPFGC),     
5.50%, 7/01/20  1,970  2,208,173 
Public Improvement, Series A (NPFGC),     
5.50%, 7/01/21  3,000  3,348,930 
Public Improvement, Series A-4 (AGM),     
5.25%, 7/01/30  1,400  1,507,520 
Sub-Series C-7 (NPFGC), 6.00%, 7/01/27  2,000  2,204,380 
Sub-Series C-7 (NPFGC), 6.00%, 7/01/28  4,000  4,394,880 
Puerto Rico Commonwealth Infrastructure Financing     
Authority, RB, CAB, Series A (c):     
(AMBAC), 4.66%, 7/01/34  9,300  2,095,197 
(AMBAC), 4.67%, 7/01/37  2,200  400,642 
(FGIC), 4.62%, 7/01/31  10,280  2,902,661 
(FGIC), 4.66%, 7/01/33  5,500  1,327,865 

 

    Par   
Municipal Bonds    (000)  Value 
Puerto Rico (concluded)       
State (concluded)       
Puerto Rico Convention Center Authority, RB, Series A       
(AMBAC), 5.00%, 7/01/31  $ 3,270  $ 3,317,676 
Puerto Rico Highway & Transportation Authority,       
Refunding RB, Series CC (AGM):       
5.50%, 7/01/31    4,000  4,572,160 
5.25%, 7/01/32    2,000  2,212,960 
Puerto Rico Public Buildings Authority, Refunding RB,       
Government Facilities, Series M-3 (NPFGC),       
6.00%, 7/01/28    2,500  2,746,800 
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 5.75%, 8/01/37    1,000  1,068,960 
      34,308,804 
Transportation — 6.5%       
Puerto Rico Highway & Transportation Authority, RB:       
Series Y (AGM), 6.25%, 7/01/21    5,025  5,826,839 
Subordinate (FGIC), 5.25%, 7/01/17    4,800  5,023,824 
Puerto Rico Highway & Transportation Authority,       
Refunding RB:       
Series AA-1 (AGM), 4.95%, 7/01/26    2,100  2,272,305 
Series CC (AGM), 5.25%, 7/01/33    1,000  1,100,210 
Series CC (AGM), 5.25%, 7/01/34    870  956,644 
Series CC (AGM), 5.25%, 7/01/36    3,750  4,116,000 
Series D, 5.75%, 7/01/12 (b)    10,000  10,949,100 
      30,244,922 
Utilities — 2.7%       
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,     
Series A (AGC), 5.13%, 7/01/47    10,175  10,463,766 
Puerto Rico Electric Power Authority, RB, Series NN,       
5.13%, 7/01/13 (b)    940  1,064,146 
Puerto Rico Electric Power Authority, Refunding RB,       
Series VV (NPFGC), 5.25%, 7/01/30    1,000  1,107,410 
      12,635,322 
Total Municipal Bonds in Puerto Rico      84,143,981 
Total Municipal Bonds — 133.6%      621,224,086 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (d)       
New York — 31.0%       
County/City/Special District/School District — 7.6%     
City of New York New York, GO:       
Series J, 5.00%, 5/15/23    6,800  7,558,404 
Sub-Series C-3 (AGC), 5.75%, 8/15/28    10,000  11,738,300 
New York State Dormitory Authority, RB, State University     
Dormitory Facilities, Series A, 5.25%, 7/01/29    5,000  5,615,250 
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),     
5.00%, 10/15/32    9,500  10,522,105 
      35,434,059 
Education — 1.3%       
New York State Dormitory Authority, RB, New York       
University, Series A, 5.00%, 7/01/38    5,498  5,849,662 
State — 1.2%       
New York State Dormitory Authority, ERB, Series B,       
5.75%, 3/15/36    5,000  5,796,100 

 

See Notes to Financial Statements.

18 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (concluded)

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (d)  (000)  Value 
New York (concluded)     
Transportation — 19.3%     
Metropolitan Transportation Authority, RB, Series A     
(NPFGC), 5.00%, 11/15/31  $ 7,002  $ 7,466,053 
Metropolitan Transportation Authority, Refunding RB,     
Series A (AGM):     
5.00%, 11/15/30  5,010  5,264,759 
5.75%, 11/15/32  29,000  31,021,300 
New York State Thruway Authority, RB, Series G (AGM),     
5.00%, 1/01/32  12,000  12,586,560 
New York State Thruway Authority, Refunding RB,     
Series H (AGM), 5.00%, 1/01/37  8,500  8,979,825 
Port Authority of New York & New Jersey, RB,     
Consolidated, 155th Series, AMT (AGM),     
5.13%, 7/15/30  2,500  2,596,650 
Triborough Bridge & Tunnel Authority, Refunding RB     
(NPFGC):     
5.25%, 11/15/23  12,000  12,927,480 
5.00%, 11/15/32  8,309  8,732,032 
    89,574,659 
Utilities — 1.6%     
New York City Municipal Water Finance Authority, RB:     
Fiscal 2009, Series A, 5.75%, 6/15/40  4,004  4,610,511 
Series FF-2, 5.50%, 6/15/40  2,399  2,730,462 
    7,340,973 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 31.0%    143,995,453 
Total Long-Term Investments     
(Cost — $736,226,483) — 164.6%    765,219,539 
Short-Term Securities     
New York — 0.1%     
City of New York New York, GO, VRDN, Sub-Series A-6     
(AGM Insurance, Dexia Credit Local SBPA),     
0.28%, 9/01/10 (e)  375  375,000 
  Shares   
Money Market Fund — 1.9%     
BIF New York Municipal Money Fund 0.00% (f)(g)  8,738,117  8,738,117 
Total Short-Term Securities     
(Cost — $9,113,117) — 2.0%    9,113,117 
Total Investments (Cost — $745,339,600*) — 166.6%    774,332,656 
Other Assets Less Liabilities — 1.3%    5,934,822 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (15.5)%    (71,778,200) 
Preferred Shares, at Redemption Value — (52.4)%    (243,636,040) 
Net Assets Applicable to Common Shares — 100.0%    $464,853,238 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 674,500,003 
Gross unrealized appreciation  $ 36,316,379 
Gross unrealized depreciation  (8,196,326) 
Net unrealized appreciation  $ 28,120,053 

 

(a) Variable rate security. Rate shown is as of report date.
(b) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(e) Variable rate security. Rate shown is as of report date and maturity shown is the
date the principal owed can be recovered through demand.
(f) Investments in companies considered to be an affiliate of the Trust during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
BIF New York         
Municipal         
Money Fund  5,049,821  3,688,296  8,738,117  $ 1,307 

 

(g) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes, and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1    —               $765,219,539      —         $765,219,539 
Short-Term           
Securities           $ 8,738,117  375,000       —            9,113,117 
Total  $ 8,738,117       $765,594,539   —         $774,332,656 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

19



Schedule of Investments August 31, 2010

BlackRock New Jersey Municipal Bond Trust (BLJ)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New Jersey — 124.5%     
Corporate — 13.7%     
New Jersey EDA, RB, AMT (a):     
Continental Airlines Inc. Project, 7.00%, 11/15/30 $  2,335  $ 2,345,064 
Disposal, Waste Management of New Jersey,     
Series A, Mandatory Put Bonds, 5.30%, 6/01/15  1,000  1,085,210 
New Jersey EDA, Refunding RB, New Jersey     
American Water Co., Inc. Project, Series A, AMT,     
5.70%, 10/01/39  475  496,403 
Port Authority of New York & New Jersey, RB,     
Continental Airlines Inc. and Eastern Air Lines Inc.     
Project, LaGuardia, AMT, 9.13%, 12/01/15  110  110,211 
Salem County Utilities Authority, Refunding RB,     
Atlantic City Electric, Series A, 4.88%, 6/01/29  750  785,190 
    4,822,078 
County/City/Special District/School District — 12.5%     
City of Vineland New Jersey, GO, Refunding, Electric     
Utilities, AMT (NPFGC):     
5.30%, 5/15/29  1,000  1,004,250 
5.38%, 5/15/32  1,500  1,505,805 
Essex County Improvement Authority, Refunding RB,     
Project Consolidation (NPFGC), 5.50%, 10/01/29  790  951,824 
Hudson County Improvement Authority, RB,     
Harrison Parking Facility Project, Series C (AGC),     
5.38%, 1/01/44  800  873,112 
Middlesex County Improvement Authority, RB,     
Subordinate, Heldrich Center Hotel, Series B,     
6.25%, 1/01/37  560  83,944 
    4,418,935 
Education — 15.6%     
New Jersey EDA, RB, School Facilities Construction:     
Series CC-2, 5.00%, 12/15/31  500  544,795 
Series S, 5.00%, 9/01/36  280  292,981 
New Jersey Educational Facilities Authority, RB:     
Georgian Court College Project, Series C,     
6.50%, 7/01/13 (b)  630  736,401 
Montclair State University, Series J, 5.25%, 7/01/38  180  191,876 
New Jersey Educational Facilities Authority, Refunding RB:     
College of New Jersey, Series D (AGM),     
5.00%, 7/01/35  1,010  1,074,498 
Fairleigh Dickinson University, Series C,     
6.00%, 7/01/20  1,000  1,040,420 
Georgian Court University, Series D, 5.00%, 7/01/33  150  150,420 
University of Medicine & Dentistry, Series B,     
7.50%, 12/01/32  450  528,543 
New Jersey Higher Education Assistance Authority,     
Refunding RB, Series 1A:     
5.00%, 12/01/25  165  173,471 
5.00%, 12/01/26  125  130,834 
5.13%, 12/01/27  300  316,362 
5.25%, 12/01/32  300  314,304 
    5,494,905 
Health — 23.5%     
New Jersey EDA, RB, First Mortgage, Lions Gate Project,     
Series A:     
5.75%, 1/01/25  150  141,597 
5.88%, 1/01/37  265  232,201 
New Jersey EDA, Refunding RB:     
First Mortgage, Winchester, Series A,     
5.80%, 11/01/31  1,000  1,013,550 
Seabrook Village Inc. Facility, 5.25%, 11/15/26  470  433,288 

 

    Par   
Municipal Bonds    (000)  Value 
New Jersey (continued)       
Health (concluded)       
New Jersey Health Care Facilities Financing Authority, RB:     
Health System, Catholic Health East, Series A,       
5.38%, 11/15/12 (b)  $ 2,000  $ 2,211,720 
Hospital Asset Transformation Program, Series A,       
5.25%, 10/01/38    500  520,000 
Meridian Health, Series I (AGC), 5.00%, 7/01/38    250  260,170 
Virtua Health (AGC), 5.50%, 7/01/38    400  438,020 
New Jersey Health Care Facilities Financing Authority,       
Refunding RB:       
Atlantic City Medical System, 5.75%, 7/01/25    1,110  1,146,919 
CAB, St. Barnabas Health, Series B,       
5.90%, 7/01/30 (c)    500  118,550 
CAB, St. Barnabas Health, Series B,       
5.68%, 7/01/36 (c)    3,600  524,124 
CAB, St. Barnabas Health, Series B,       
5.75%, 7/01/37 (c)    3,600  485,208 
Robert Wood Johnson, 5.00%, 7/01/31 (d)    235  242,955 
South Jersey Hospital, 5.00%, 7/01/46    500  503,435 
      8,271,737 
Housing — 9.6%       
New Jersey State Housing & Mortgage Finance       
Agency, RB:       
S/F Housing, Series CC, 5.00%, 10/01/34    560  574,515 
Series A, 4.75%, 11/01/29    370  377,981 
Series AA, 6.38%, 10/01/28    980  1,100,854 
Series AA, 6.50%, 10/01/38    365  404,347 
New Jersey State Housing & Mortgage Finance       
Agency, Refunding RB, S/F Housing, Series T, AMT,       
4.70%, 10/01/37    250  248,097 
Newark Housing Authority, RB, South Ward Police       
Facility (AGC):       
5.75%, 12/01/30    180  199,588 
6.75%, 12/01/38    405  472,291 
      3,377,673 
State — 30.0%       
Garden State Preservation Trust, RB, CAB, Series B       
(AGM), 5.24%, 11/01/27 (c)    4,000  2,016,480 
New Jersey EDA, RB:       
Motor Vehicle Surcharge, Series A (NPFGC),       
5.25%, 7/01/24    500  572,770 
Motor Vehicle Surcharge, Series A (NPFGC),       
5.25%, 7/01/25    500  570,595 
Newark Downtown District Management Corp.,       
5.13%, 6/15/37    250  238,940 
School Facilities Construction, Series Z (AGC),       
5.50%, 12/15/34    1,000  1,120,830 
School Facilities Construction, Series Z (AGC),       
6.00%, 12/15/34    1,000  1,158,350 
New Jersey EDA, Refunding RB:       
New Jersey American Water Co., Inc. Project,       
Series B, AMT, 5.60%, 11/01/34    395  418,870 
School Facilities Construction, Series AA,       
5.50%, 12/15/29    500  566,975 
New Jersey EDA, Special Assessment Bonds, Refunding,     
Kapkowski Road Landfill Project, 6.50%, 4/01/28    2,250  2,524,500 
New Jersey Transportation Trust Fund Authority, RB:       
CAB, Transportation System, Series C (AGM),       
4.85%, 12/15/32 (c)    1,250  388,362 
Transportation System, Series A, 6.00%, 12/15/38  500  569,925 
Transportation System, Series A (AGC),       
5.63%, 12/15/28    200  230,648 
State of New Jersey, COP, Equipment Lease Purchase,       
Series A, 5.25%, 6/15/28    200  216,664 
      10,593,909 

 

See Notes to Financial Statements.

20 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (continued)

BlackRock New Jersey Municipal Bond Trust (BLJ)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New Jersey (concluded)       
Tobacco — 1.3%       
Tobacco Settlement Financing Corp. New Jersey,       
Refunding RB, Series 1A, 4.50%, 6/01/23  $ 480  $ 451,104 
Transportation — 17.2%       
New Jersey State Turnpike Authority, RB, Series E,       
5.25%, 1/01/40    1,000  1,078,960 
New Jersey Transportation Trust Fund Authority, RB,       
Transportation System, Series A, 5.88%, 12/15/38  460  518,236 
Port Authority of New York & New Jersey, RB, Consolidated:     
125th Series (AGM), 5.00%, 4/15/32    1,500  1,591,440 
126th Series, AMT (NPFGC), 5.25%, 5/15/37    2,250  2,296,620 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.75%, 11/01/30  525  588,945 
      6,074,201 
Utilities — 1.1%       
Cumberland County Improvement Authority, RB, Series A,     
5.00%, 1/01/30    195  201,427 
Rahway Valley Sewerage Authority, RB, CAB, Series A       
(NPFGC), 4.40%, 9/01/33 (c)    650  194,773 
      396,200 
Total Municipal Bonds in New Jersey      43,900,742 
Multi-State — 6.3%       
Housing — 6.3%       
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (e)(f)  2,000  2,209,280 
Total Municipal Bonds in Multi-State      2,209,280 
Pennsylvania — 0.7%       
Transportation — 0.7%       
Delaware River Port Authority, RB, Series D,       
5.00%, 1/01/40    250  261,560 
Total Municipal Bonds in Pennsylvania      261,560 
Puerto Rico — 17.0%       
County/City/Special District/School District — 3.9%     
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
First Sub-Series C:       
6.00%, 8/01/39    540  596,014 
(AGM), 5.13%, 8/01/42    750  795,150 
      1,391,164 
Housing — 2.1%       
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,       
5.13%, 12/01/27    715  743,464 
State — 5.5%       
Puerto Rico Commonwealth Infrastructure Financing       
Authority, RB, CAB, Series A (AMBAC) (c):       
4.37%, 7/01/37    1,750  318,693 
4.53%, 7/01/43    1,000  119,540 
Puerto Rico Public Buildings Authority, Refunding RB,       
Government Facilities, Series M-3 (NPFGC),       
6.00%, 7/01/27    425  463,734 
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 5.75%, 8/01/37    970  1,036,891 
      1,938,858 

 

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico (concluded)     
Transportation — 3.2%     
Puerto Rico Highway & Transportation Authority,     
Refunding RB, Series CC (AGC), 5.50%, 7/01/31  $ 1,000  $ 1,143,040 
Utilities — 2.3%     
Puerto Rico Electric Power Authority, RB, Series WW,     
5.50%, 7/01/38  750  793,418 
Total Municipal Bonds in Puerto Rico    6,009,944 
Total Municipal Bonds — 148.5%    52,381,526 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (g)     
New Jersey — 3.7%     
Transportation — 3.7%     
New Jersey Transportation Trust Fund Authority, RB,     
Transportation System, Series A (AGM),     
5.00%, 12/15/32  600  639,138 
Port Authority of New York & New Jersey, Refunding RB,     
Consolidated, 152nd Series, AMT, 5.25%, 11/01/35  630  663,431 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 3.7%    1,302,569 
Total Long-Term Investments     
(Cost — $51,894,642) — 152.2%    53,684,095 
Short-Term Securities  Shares   
BIF New Jersey Municipal Money Fund, 0.04% (h)(i)  915,154  915,154 
Total Short-Term Securities     
(Cost — $915,154) — 2.6%    915,154 
Total Investments (Cost — $52,809,796*) — 154.8%    54,599,249 
Other Assets Less Liabilities — 0.5%    173,367 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (2.1)%    (720,314) 
Preferred Shares, at Redemption Value — (53.2)%    (18,775,235) 
Net Assets Applicable to Common Shares — 100.0%    $ 35,277,067 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 51,937,902 
Gross unrealized appreciation  $ 3,436,296 
Gross unrealized depreciation  (1,494,732) 
Net unrealized appreciation  $ 1,941,564 

 

(a) Variable rate security. Rate shown is as of report date.
(b) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
JP Morgan Securities  $ 242,955  $ 4,477 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

21



Schedule of Investments (concluded)

BlackRock New Jersey Municipal Bond Trust (BLJ)

(e) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(f) Security represents a beneficial interest in a trust. The collateral deposited into
the trust is federally tax-exempt revenue bonds issued by various state or local
governments, or their respective agencies or authorities. The security is subject to
remarketing prior to its stated maturity.
(g) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(h) Investments in companies considered to be an affiliate of the Trust during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
BIF New Jersey         
Municipal         
Money Fund  650,601  264,553  915,154  $ 267 

 

(i) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes, and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1      $53,684,095    $53,684,095 
Short-Term           
Securities  $ 915,154      915,154 
Total  $ 915,154  $53,684,095    $54,599,249 

 

1 See above Schedule of Investments for values in each sector.

See Notes to Financial Statements.

22 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments August 31, 2010

BlackRock New York Insured Municipal Income Trust (BSE)

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York — 113.1%       
Corporate — 1.1%       
New York State Energy Research & Development     
Authority, RB, Lilco Project, Series A (NPFGC),     
5.15%, 3/01/16  $ 1,000  $ 1,029,620 
County/City/Special District/School District — 24.8%     
Erie County Industrial Development Agency, RB, City     
School District of Buffalo Project, Series A (AGM),     
5.75%, 5/01/25    1,000  1,141,640 
Haverstraw-Stony Point Central School District New York,     
GO (AGM):       
3.00%, 10/15/26    200  184,026 
3.00%, 10/15/27    140  126,158 
Hudson Yards Infrastructure Corp., RB, Series A:     
(FGIC), 5.00%, 2/15/47    3,000  3,003,030 
(NPFGC), 4.50%, 2/15/47    250  239,298 
New York City Industrial Development Agency, RB, PILOT:     
CAB, Yankee Stadium, (AGC), 6.51%, 3/01/39 (a)  1,000  217,200 
Queens Baseball Stadium, (AGC), 6.38%, 1/01/39  150  169,688 
Queens Baseball Stadium, (AMBAC),     
5.00%, 1/01/46    2,475  2,308,333 
Yankee Stadium, (NPFGC), 4.75%, 3/01/46  1,000  987,990 
New York City Transitional Finance Authority, RB,     
Series S-2 (AGM), 5.00%, 1/15/37  850  894,429 
New York City Transitional Finance Authority,     
Refunding RB (AMBAC):       
Future Tax Secured, Series B, 5.00%, 5/01/30  3,260  3,420,718 
Future Tax, Series B, 5.00%, 11/01/11 (b)  5  5,326 
New York Convention Center Development Corp., RB,     
Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44  4,675  4,751,717 
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),     
5.00%, 10/15/32    6,000  6,541,260 
      23,990,813 
Education — 31.4%       
City of Troy New York, Refunding RB, Rensselaer     
Polytechnic, Series A, 5.13%, 9/01/40  175  181,304 
Herkimer County Industrial Development Agency     
New York, RB, College Foundation Inc. Student     
Housing Project, 6.25%, 8/01/34    1,000  1,019,090 
Madison County Industrial Development Agency     
New York, RB, Colgate University Project, Series A     
(AMBAC), 5.00%, 7/01/30    1,000  1,053,830 
New York City Industrial Development Agency, RB,     
Lycee Francais de New York Project, Series A (ACA),     
5.38%, 6/01/23    2,500  2,583,125 
New York City Transitional Finance Authority, RB,     
Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33  1,000  1,133,150 
New York State Dormitory Authority, RB:     
Brooklyn Law School, Series B (Syncora),     
5.13%, 7/01/30    4,000  4,098,720 
FIT Student Housing Corp. (FGIC),       
5.13%, 7/01/14 (b)    2,500  2,923,900 
Mount Sinai School of Medicine at NYU (NPFGC),     
5.00%, 7/01/35    3,500  3,564,645 
New York University, Series 2 (AMBAC),     
5.00%, 7/01/41    7,000  7,051,870 
Saint’s Joachim & Anne Residence, 5.25%, 7/01/27  3,000  3,029,760 
Trust for Cultural Resources, Refunding RB, American     
Museum of Natural History, Series A (NPFGC):     
5.00%, 7/01/36    1,000  1,074,260 
5.00%, 7/01/44    2,500  2,580,725 
      30,294,379 

 

    Par   
Municipal Bonds    (000)  Value 
New York (concluded)       
Health — 18.9%       
New York State Dormitory Authority, MRB:       
Hospital, Lutheran Medical (NPFGC),       
5.00%, 8/01/31  $ 4,500  $ 4,564,170 
St. Barnabas, Series A (FHA), 5.00%, 2/01/31    5,000  5,079,200 
New York State Dormitory Authority, RB:       
Hudson Valley Hospital (BHAC), 5.00%, 8/15/36    1,250  1,334,612 
New York & Presbyterian Hospital (AGM),       
5.25%, 2/15/31    500  531,105 
North Shore-Long Island Jewish Health System,       
Series A, 5.50%, 5/01/37    350  368,956 
New York State Dormitory Authority, Refunding RB:       
Hospital, New York & Presbyterian Hospital       
(AMBAC), 5.00%, 8/01/32    3,885  3,887,642 
St. Luke’s Roosevelt Hospital (FHA), 4.90%, 8/15/31  500  504,850 
Winthrop University Hospital Association, Series A       
(AMBAC), 5.25%, 7/01/31    2,000  2,013,380 
      18,283,915 
State — 9.1%       
New York State Dormitory Authority, ERB, Series B,       
5.75%, 3/15/36    600  695,532 
New York State Dormitory Authority, RB:       
Master BOCES Program Lease (AGC),       
4.75%, 8/15/24    250  273,843 
Mental Health Services Facilities Improvement,       
Series A (AGM), 5.00%, 2/15/22    1,000  1,123,140 
School Districts Financing Program, Series D       
(NPFGC), 5.00%, 10/01/30    3,500  3,565,660 
New York State Dormitory Authority, Refunding RB,       
School Districts Financing Program, Series A:       
(AGM), 5.00%, 10/01/35    1,000  1,059,240 
(NPFGC), 5.00%, 4/01/31    2,000  2,034,320 
      8,751,735 
Transportation — 20.7%       
Hudson Yards Infrastructure Corp., RB:       
(AGC), 5.00%, 2/15/47    1,250  1,291,863 
Series A (AGM), 5.00%, 2/15/47    605  625,261 
Metropolitan Transportation Authority, RB,       
Series 2008C, 6.50%, 11/15/28    750  899,160 
Metropolitan Transportation Authority, Refunding RB:       
Series A (AMBAC), 5.00%, 7/01/30    4,600  4,841,546 
Series A (NPFGC), 5.25%, 11/15/31    4,250  4,524,507 
Transportation, Series E (NPFGC), 5.25%, 11/15/31  2,660  2,831,809 
New York State Thruway Authority, RB, Series G (AGM),       
5.00%, 1/01/32    500  524,440 
New York State Thruway Authority, Refunding RB,       
Series H (AGM), 5.00%, 1/01/37    4,000  4,225,800 
Port Authority of New York & New Jersey, RB,       
Consolidated, 116th Series, 4.13%, 9/15/32    250  253,618 
      20,018,004 
Utilities — 7.1%       
Long Island Power Authority, RB, General, Series C       
(CIFG), 5.25%, 9/01/29    1,000  1,179,980 
Long Island Power Authority, Refunding RB:       
General, Series A (AGC), 6.00%, 5/01/33    2,000  2,351,260 
General, Series F (NPFGC), 4.25%, 5/01/33    1,415  1,420,575 
Series A (AGC), 5.75%, 4/01/39    1,690  1,933,377 
      6,885,192 
Total Municipal Bonds in New York      109,253,658 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

23



Schedule of Investments (continued)

BlackRock New York Insured Municipal Income Trust (BSE)

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Guam — 0.7%       
Utilities — 0.7%       
Guam Power Authority, Refunding RB, Series A (AGM),     
5.00%, 10/01/37  $ 675  $ 692,726 
Puerto Rico — 17.7%       
County/City/Special District/School District — 0.8%     
Puerto Rico Sales Tax Financing Corp., RB, First     
Sub-Series A (AGM), 5.00%, 8/01/40    500  523,300 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
CAB, Series A (NPFGC), 5.78%, 8/01/41 (a)  1,500  251,145 
      774,445 
Education — 4.6%       
Puerto Rico Industrial Tourist Educational Medical &     
Environmental Control Facilities Financing Authority,     
RB, University Plaza Project, Series A (NPFGC),     
5.00%, 7/01/33    1,000  1,000,860 
Puerto Rico Industrial Tourist Educational Medical &     
Environmental Control Facilities Financing Authority,     
Refunding RB, Polytechnic University Project, Series A     
(ACA), 5.00%, 8/01/32    3,800  3,478,178 
      4,479,038 
State — 6.0%       
Commonwealth of Puerto Rico, GO, Refunding:       
Public Improvement, Series A-4 (AGM),       
5.25%, 7/01/30    725  780,680 
Sub-Series C-7 (NPFGC), 6.00%, 7/01/27  1,000  1,102,190 
Puerto Rico Highway & Transportation Authority,     
Refunding RB, Series CC (AGM):       
5.50%, 7/01/31    1,000  1,143,040 
5.25%, 7/01/32    1,000  1,106,480 
Puerto Rico Public Buildings Authority, Refunding RB,     
Government Facilities, Series M-3 (NPFGC),       
6.00%, 7/01/28    500  549,360 
Puerto Rico Sales Tax Financing Corp., RB, First     
Sub-Series A, 5.75%, 8/01/37    1,000  1,068,960 
      5,750,710 
Transportation — 2.4%       
Puerto Rico Highway & Transportation Authority, RB,     
Series Y (AGM), 6.25%, 7/01/21    2,000  2,319,140 
Utilities — 3.9%       
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,     
Series A (AGC), 5.13%, 7/01/47    1,250  1,285,475 
Puerto Rico Electric Power Authority, Refunding RB,     
Series VV (NPFGC):       
5.25%, 7/01/29    250  278,710 
5.25%, 7/01/30    2,000  2,214,820 
      3,779,005 
Total Municipal Bonds in Puerto Rico      17,102,338 
Total Municipal Bonds — 131.5%      127,048,722 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (c)       
New York — 19.1%       
County/City/Special District/School District — 1.2%     
City of New York New York, GO, Sub-Series C-3 (AGC),     
5.75%, 8/15/28    1,000  1,173,830 

 

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (c)  (000)  Value 
New York (concluded)     
Transportation — 16.8%     
Metropolitan Transportation Authority, Refunding RB,     
Series A (AGM), 5.00%, 11/15/30  $ 6,080  $ 6,389,168 
Triborough Bridge & Tunnel Authority, Refunding RB     
(NPFGC), 5.00%, 11/15/32  9,404  9,882,642 
    16,271,810 
Utilities — 1.1%     
New York City Municipal Water Finance Authority, RB:     
Fiscal 2009, Series A, 5.75%, 6/15/40  495  569,838 
Series FF-2, 5.50%, 6/15/40  405  460,766 
    1,030,604 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 19.1%    18,476,244 
Total Long-Term Investments     
(Cost — $139,046,654) — 150.6%    145,524,966 
Short-Term Securities     
New York — 0.1%     
City of New York New York, GO, Refunding, VRDN,     
Sub-Series H-3 (AGM Insurance, State Street     
Bank & Co. SBPA), 0.26%, 9/01/10 (d)  50  50,000 
  Shares   
Money Market Fund — 1.1%     
BIF New York Municipal Money Fund     
0.00% (e)(f)  1,077,827  1,077,827 
Total Short-Term Securities     
(Cost — $1,127,827) — 1.2%    1,127,827 
Total Investments (Cost — $140,174,481*) — 151.8%    146,652,793 
Other Assets Less Liabilities — 1.0%    960,780 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (10.8)%    (10,419,533) 
Preferred Shares, at Redemption Value — (42.0)%    (40,577,540) 
Net Assets Applicable to Common Shares — 100.0%    $ 96,616,500 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 129,861,426 
Gross unrealized appreciation  $ 6,932,588 
Gross unrealized depreciation  (549,724) 
Net unrealized appreciation  $ 6,382,864 

 

(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(b) US government securities, held in escrow, are used to pay interest on this security
as well as to retire the bond in full at the date indicated, typically at a premium
to par.
(c) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(d) Variable rate security. Rate shown is as of report date and maturity shown is the
date the principal owed can be recovered through demand.

See Notes to Financial Statements.

24 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (concluded)

BlackRock New York Insured Municipal Income Trust (BSE)

(e) Investments in companies considered to be an affiliate of the Trust during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
BIF New York         
Municipal         
Money Fund  3,311,074  (2,233,247)  1,077,827  $ 82 

 

(f) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes, and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information
about the Trust’s policy regarding valuation of investments and other significant
accounting policies, please refer to the Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1      $145,524,966    $145,524,966 
Short-Term           
Securities  $ 1,077,827  50,000    1,127,827 
Total  $ 1,077,827  $145,574,966    $146,652,793 

 

1 See above Schedule of Investments for values in each sector.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

25



Schedule of Investments August 31, 2010

BlackRock New York Municipal Bond Trust (BQH)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York — 119.2%       
Corporate — 14.6%       
Chautauqua County Industrial Development Agency, RB,     
Nrg Dunkirk Power Project, 5.88%, 4/01/42  $ 250  $ 260,123 
Essex County Industrial Development Agency New York,     
RB, International Paper Co. Project, Series A, AMT,       
6.63%, 9/01/32    100  106,936 
New York City Industrial Development Agency, RB,       
American Airlines Inc., JFK International Airport,       
AMT (a):       
7.63%, 8/01/25    750  784,717 
7.75%, 8/01/31    1,000  1,052,290 
New York Liberty Development Corp., RB, Goldman       
Sachs Headquarters, 5.25%, 10/01/35    1,350  1,420,146 
Port Authority of New York & New Jersey, RB,       
Continental Airlines Inc. and Eastern Air Lines Inc.       
Project, LaGuardia, AMT, 9.13%, 12/01/15    2,195  2,199,214 
Suffolk County Industrial Development Agency New York,     
RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27  500  503,515 
      6,326,941 
County/City/Special District/School District — 27.1%     
Amherst Development Corp., RB, University at       
Buffalo Foundation Faculty-Student Housing Corp.,       
Series A (AGM):       
4.38%, 10/01/30    250  255,728 
4.63%, 10/01/40    140  142,710 
City of New York New York, GO:       
Series A-1, 4.75%, 8/15/25    500  555,160 
Series D, 5.38%, 6/01/32    2,040  2,159,238 
Sub-Series G-1, 6.25%, 12/15/31    250  299,080 
Sub-Series I-1, 5.38%, 4/01/36    450  497,664 
Hudson Yards Infrastructure Corp., RB, Series A:       
5.00%, 2/15/47    700  700,707 
(FGIC), 5.00%, 2/15/47    500  500,505 
(NPFGC), 4.50%, 2/15/47    850  813,611 
New York City Industrial Development Agency, PILOT, RB:     
CAB, Yankee Stadium (AGC), 6.40%, 3/01/41 (b)  5,155  979,398 
CAB, Yankee Stadium (AGC), 6.01%, 3/01/42 (b)  1,000  178,270 
CAB, Yankee Stadium (AGC), 6.45%, 3/01/43 (b)  2,500  417,950 
Queens Baseball Stadium (AGC), 6.38%, 1/01/39  100  113,125 
Queens Baseball Stadium (AMBAC),       
5.00%, 1/01/39    750  703,568 
New York City Transitional Finance Authority, RB,       
Fiscal 2009, Series S-3, 5.25%, 1/15/39    500  544,815 
New York Convention Center Development Corp., RB,       
Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44  1,000  1,016,410 
New York Liberty Development Corp., Refunding RB,       
Second Priority, Bank of America Tower at One Bryant     
Park Project:       
5.63%, 7/15/47    1,100  1,142,031 
6.38%, 7/15/49    285  305,423 
New York State Dormitory Authority, RB:       
Interagency Council Pooled, Series A-1,       
4.25%, 7/01/25    250  258,525 
State University Dormitory Facilities, Series A,       
5.00%, 7/01/39    150  160,832 
      11,744,750 
Education — 19.4%       
Albany Industrial Development Agency, RB, New Covenant     
Charter School Project, Series A (c)(d):       
7.00%, 5/01/25    200  80,004 
7.00%, 5/01/35    130  52,003 
City of Troy New York, Refunding RB, Rensselaer       
Polytechnic, Series A, 5.13%, 9/01/40    175  181,304 

 

  Par   
Municipal Bonds  (000)  Value 
New York (continued)     
Education (concluded)     
Dutchess County Industrial Development Agency New     
York, RB, Vassar College Project, 5.35%, 8/01/11 (e)  $ 1,000  $ 1,056,670 
Dutchess County Industrial Development Agency     
New York, Refunding RB, Bard College Civic Facility,     
Series A-2, 4.50%, 8/01/36  500  442,035 
Nassau County Industrial Development Agency,     
Refunding RB, New York Institute of Technology     
Project, Series A, 4.75%, 3/01/26  200  207,116 
New York City Industrial Development Agency, RB,     
Lycee Francais de New York Project, Series A (ACA),     
5.50%, 6/01/15  250  266,582 
New York City Industrial Development Agency,     
Refunding RB, Polytechnic University Project (ACA),     
5.25%, 11/01/37  250  241,220 
New York State Dormitory Authority, RB:     
5.83%, 7/01/39 (f)  175  152,371 
Iona College (Syncora), 5.13%, 7/01/32  2,000  2,020,580 
Mount Sinai School of Medicine, 5.13%, 7/01/39  500  514,455 
New York University, Series 1 (BHAC),     
5.50%, 7/01/31  245  294,551 
Rochester Institute of Technology, Series A,     
6.00%, 7/01/33  325  366,226 
University of Rochester, Series A, 5.13%, 7/01/39  215  230,852 
Vassar College, 5.00%, 7/01/49  200  213,684 
New York State Dormitory Authority, Refunding RB:     
Brooklyn Law School, 5.75%, 7/01/33  125  137,858 
Teachers College, 5.50%, 3/01/39  350  377,573 
Suffolk County Industrial Development Agency,     
Refunding RB, New York Institute of Technology     
Project, 5.00%, 3/01/26  150  154,070 
Trust for Cultural Resources, RB, Series A:     
Carnegie Hall, 4.75%, 12/01/39  550  567,842 
Juilliard School, 5.00%, 1/01/39  550  597,965 
Yonkers Industrial Development Agency New York, RB,     
Sarah Lawrence College Project, Series A,     
6.00%, 6/01/41  250  267,337 
    8,422,298 
Health — 7.4%     
Genesee County Industrial Development Agency     
New York, Refunding RB, United Memorial Medical     
Center Project, 5.00%, 12/01/27  150  132,735 
New York State Dormitory Authority, RB:     
New York State Association for Retarded     
Children, Inc., Series B (AMBAC), 6.00%, 7/01/32  185  203,332 
New York University Hospital Center, Series B,     
5.63%, 7/01/37  260  271,583 
North Shore-Long Island Jewish Health System,     
Series A, 5.50%, 5/01/37  450  474,372 
North Shore-Long Island Jewish Health System,     
Series A, 5.75%, 5/01/37  500  535,880 
New York State Dormitory Authority, Refunding RB:     
Mount Sinai Hospital, Series A, 5.00%, 7/01/26  350  373,656 
North Shore-Long Island Jewish Health System,     
Series E, 5.50%, 5/01/33  250  263,902 
Saratoga County Industrial Development Agency     
New York, RB, Saratoga Hospital Project, Series B,     
5.25%, 12/01/32  200  201,782 
Suffolk County Industrial Development Agency     
New York, Refunding RB, Jeffersons Ferry Project,     
5.00%, 11/01/28  260  250,955 
Westchester County Industrial Development Agency     
New York, MRB, Kendal on Hudson Project, Series A,     
6.38%, 1/01/24  500  501,790 
    3,209,987 

 

See Notes to Financial Statements.

26 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (continued)

BlackRock New York Municipal Bond Trust (BQH)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York (concluded)       
Housing — 6.9%       
New York City Housing Development Corp., RB, Series A,     
AMT, 5.50%, 11/01/34  $ 2,500  $ 2,527,125 
New York State HFA, RB, Highland Avenue       
Senior Apartments, Series A, AMT (SONYMA),       
5.00%, 2/15/39    500  481,700 
      3,008,825 
State — 16.5%       
New York State Dormitory Authority, ERB, Series B,       
5.75%, 3/15/36    300  347,766 
New York State Dormitory Authority, LRB, Municipal       
Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30    500  515,655 
New York State Dormitory Authority, RB, Mental Health       
Services Facilities Improvement, Series A (AGM),       
5.00%, 2/15/22    335  376,252 
New York State Urban Development Corp., RB,       
Personal Income Tax, State Facilities, Series A,       
5.25%, 3/15/12 (e)    5,000  5,384,050 
State of New York, GO, Series A, 5.00%, 2/15/39    500  535,560 
      7,159,283 
Tobacco — 8.1%       
New York Counties Tobacco Trust III, RB, Tobacco       
Settlement Pass-Thru, Turbo, 6.00%, 6/01/43    1,445  1,322,840 
TSASC Inc. New York, RB, Tobacco Settlement       
Asset-Backed, Series 1, 5.75%, 7/15/12 (e)    2,000  2,203,300 
      3,526,140 
Transportation — 10.4%       
Metropolitan Transportation Authority, RB:       
Series 2008C, 6.50%, 11/15/28    700  839,216 
Series A, 5.63%, 11/15/39    250  277,055 
Series B, 4.50%, 11/15/37    100  101,346 
Port Authority of New York & New Jersey, RB,       
Consolidated:       
116th Series, 4.13%, 9/15/32    500  507,235 
126th Series, AMT (NPFGC), 5.25%, 5/15/37    2,750  2,806,980 
      4,531,832 
Utilities — 8.8%       
Long Island Power Authority, RB, General, Series C       
(CIFG), 5.25%, 9/01/29    500  589,990 
Long Island Power Authority, Refunding RB, Series A:       
5.50%, 4/01/24    250  288,187 
6.25%, 4/01/33    100  118,119 
New York City Municipal Water Finance Authority, RB:       
Second General Resolution (NPFGC),       
4.50%, 6/15/37    250  253,163 
Series A (FGIC), 5.25%, 6/15/11 (e)    1,500  1,559,430 
New York State Environmental Facilities Corp.,       
Refunding RB, Revolving Funds, New York City       
Water Project, Series D, 5.13%, 6/15/31    1,000  1,029,290 
      3,838,179 
Total Municipal Bonds in New York      51,768,235 
Guam — 1.8%       
State — 0.6%       
Territory of Guam, GO, Series A, 7.00%, 11/15/39    225  250,940 
Tobacco — 0.4%       
Guam Economic Development & Commerce Authority,       
Refunding RB, Tobacco Settlement Asset-Backed,       
5.63%, 6/01/47    200  170,260 

 

    Par   
Municipal Bonds    (000)  Value 
Guam (concluded)       
Utilities — 0.8%       
Guam Government Waterworks Authority, Refunding RB,     
Water, 5.88%, 7/01/35  $ 350  $ 354,645 
Total Municipal Bonds in Guam      775,845 
Multi-State — 6.4%       
Housing — 6.4%       
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (g)(h)  2,500  2,761,600 
Puerto Rico — 17.9%       
County/City/Special District/School District — 3.0%     
Puerto Rico Sales Tax Financing Corp., RB, First       
Sub-Series A, 6.00%, 8/01/42    1,000  1,095,290 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
CAB, Series A (NPFGC), 5.77%, 8/01/41 (b)    1,400  234,402 
      1,329,692 
State — 12.0%       
Commonwealth of Puerto Rico, GO, Public Improvement,     
Series A, 5.13%, 7/01/31    1,725  1,732,486 
Puerto Rico Commonwealth Infrastructure Financing       
Authority, RB, CAB, Series A (AMBAC) (b):       
4.37%, 7/01/37    2,000  364,220 
4.99%, 7/01/44    2,000  222,640 
Puerto Rico Public Buildings Authority, Refunding RB,       
Government Facilities, Series D:       
5.25%, 7/01/12 (e)    1,980  2,151,785 
5.25%, 7/01/27    720  728,093 
      5,199,224 
Tobacco — 1.0%       
Children’s Trust Fund, Refunding RB, Asset-Backed,       
5.63%, 5/15/43    500  434,915 
Transportation — 1.9%       
Puerto Rico Highway & Transportation Authority,       
Refunding RB, Series D, 5.25%, 7/01/12 (e)    750  814,350 
Total Municipal Bonds in Puerto Rico      7,778,181 
Total Municipal Bonds — 145.3%      63,083,861 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (i)       
New York — 6.5%       
Housing — 5.4%       
New York Mortgage Agency, Refunding RB, Series 101,     
AMT, 5.40%, 4/01/32    2,337  2,350,170 
Utilities — 1.1%       
New York City Municipal Water Finance Authority, RB,       
Fiscal 2009, Series A, 5.75%, 6/15/40    405  466,232 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 6.5%      2,816,402 
Total Long-Term Investments       
(Cost — $62,539,389) — 151.8%      65,900,263 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

27



Schedule of Investments (concluded)

BlackRock New York Municipal Bond Trust (BQH)
(Percentages shown are based on Net Assets)

Short-Term Securities  Shares  Value 
BIF New York Municipal Money Fund, 0.00% (j)(k)  563,059  $ 563,059 
Total Short-Term Securities     
(Cost — $563,059) — 1.3%    563,059 
Total Investments (Cost — $63,102,448*) — 153.1%    66,463,322 
Other Assets Less Liabilities — 1.2%    513,609 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (3.3)%    (1,440,915) 
Preferred Shares, at Redemption Value — (51.0)%    (22,126,939) 
Net Assets Applicable to Common Shares — 100.0%    $ 43,409,077 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 61,568,263 
Gross unrealized appreciation  $ 4,301,072 
Gross unrealized depreciation  (845,023) 
Net unrealized appreciation  $ 3,456,049 

 

(a) Variable rate security. Rate shown is as of report date.
(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.
(d) Non-income producing security.
(e) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(f) Represents a step-up bond that pays an initial coupon rate for the first period and
then a higher coupon rate for the following periods. Rate shown reflects the current
yield as of report date.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(h) Security represents a beneficial interest in a trust. The collateral deposited into the
trust is federally tax-exempt revenue bonds issued by various state or local govern-
ments, or their respective agencies or authorities. The security is subject to remarket-
ing prior to its stated maturity.
(i) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(j) Investments in companies considered to be an affiliate of the Trust during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
BIF New York         
Municipal         
Money Fund  1,137,340  (574,281)  563,059  $ 131 

 

(k) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes, and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1      $65,900,263    $65,900,263 
Short-Term           
Securities  $ 563,059      563,059 
Total  $ 563,059  $65,900,263    $66,463,322 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

28 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments August 31, 2010

BlackRock New York Municipal Income Trust II (BFY)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
New York — 141.7%       
Corporate — 22.7%       
Chautauqua County Industrial Development Agency, RB,     
Nrg Dunkirk Power Project, 5.88%, 4/01/42  $ 500  $ 520,245 
Essex County Industrial Development Agency New York,     
RB, International Paper Co. Project, Series A, AMT,       
6.63%, 9/01/32    200  213,872 
Essex County Industrial Development Agency New York,     
Refunding RB, International Paper Co. Project,       
Series A, AMT, 5.50%, 10/01/26    625  626,306 
Jefferson County Industrial Development Agency       
New York, Refunding RB, Solid Waste, Series A, AMT,     
5.20%, 12/01/20    750  754,612 
New York City Industrial Development Agency, RB:       
American Airlines Inc., JFK International Airport,       
AMT, 7.63%, 8/01/25 (a)    1,600  1,674,064 
American Airlines Inc., JFK International Airport,       
AMT, 7.75%, 8/01/31 (a)    1,500  1,578,435 
Liberty-IAC/InteractiveCorp, 5.00%, 9/01/35    500  466,895 
New York Liberty Development Corp., RB, Goldman       
Sachs Headquarters, 5.25%, 10/01/35    250  262,990 
New York State Energy Research & Development       
Authority, RB, AMT, 4.70%, 6/01/36 (a)    5,500  5,508,415 
Port Authority of New York & New Jersey, RB,       
Continental Airlines Inc. and Eastern Air Lines Inc.       
Project, LaGuardia, AMT, 9.13%, 12/01/15    3,105  3,110,962 
Suffolk County Industrial Development Agency New York,     
RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27  2,500  2,517,575 
      17,234,371 
County/City/Special District/School District — 30.4%     
Amherst Development Corp., RB, University at       
Buffalo Foundation Faculty-Student Housing Corp.,       
Series A (AGM):       
4.38%, 10/01/30    500  511,455 
4.63%, 10/01/40    275  280,324 
City of New York New York, GO:       
Series A-1, 4.75%, 8/15/25    500  555,160 
Series B, 5.75%, 12/01/11 (b)    2,000  2,136,920 
Sub-Series G-1, 6.25%, 12/15/31    250  299,080 
Sub-Series I-1, 5.38%, 4/01/36    450  497,664 
Hudson Yards Infrastructure Corp., RB, Series A,       
5.00%, 2/15/47    2,350  2,352,373 
New York City Industrial Development Agency, RB, PILOT:     
CAB, Yankee Stadium (AGC), 5.80%, 3/01/35 (c)  500  140,130 
CAB, Yankee Stadium (AGC), 6.01%, 3/01/42 (c)  2,000  356,540 
Queens Baseball Stadium (AGC), 6.38%, 1/01/39  100  113,125 
Queens Baseball Stadium (AMBAC),       
5.00%, 1/01/39    1,000  938,090 
Queens Baseball Stadium (AMBAC),       
5.00%, 1/01/46    1,300  1,212,458 
New York City Transitional Finance Authority, RB:       
Fiscal 2009, Series S-3, 5.25%, 1/15/39    1,300  1,416,519 
Series S-2 (NPFGC), 4.50%, 1/15/31    2,500  2,559,700 
Series S-2 (NPFGC), 4.25%, 1/15/34    250  251,460 
New York City Transitional Finance Authority, Refunding     
RB, Future Tax Secured, Series B, 5.00%, 11/01/27  5,000  5,328,700 
New York Convention Center Development Corp., RB,       
Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35  2,750  2,801,507 
New York Liberty Development Corp., Refunding RB,       
Second Priority, Bank of America Tower at One Bryant     
Park Project:       
5.63%, 7/15/47    500  519,105 
6.38%, 7/15/49    500  535,830 
New York State Dormitory Authority, RB, State University     
Dormitory Facilities, Series A, 5.00%, 7/01/39    250  268,053 
      23,074,193 

 

    Par   
Municipal Bonds    (000)  Value 
New York (continued)       
Education — 22.9%       
Albany Industrial Development Agency, RB, New Covenant     
Charter School Project, Series A (d)(e):       
7.00%, 5/01/25  $ 345  $ 138,007 
7.00%, 5/01/35    220  88,004 
City of Troy New York, Refunding RB, Rensselaer       
Polytechnic, Series A, 5.13%, 9/01/40    250  259,005 
Dutchess County Industrial Development Agency New     
York, RB, Vassar College Project, 5.35%, 8/01/11 (b)  1,000  1,056,670 
Dutchess County Industrial Development Agency       
New York, Refunding RB, Bard College Civic Facility,     
Series A-2, 4.50%, 8/01/36    755  667,473 
Geneva Industrial Development Agency New York,       
RB, Hobart & William Smith Project, Series A,       
5.38%, 2/01/33    3,250  3,306,777 
Herkimer County Industrial Development Agency       
New York, RB, College Foundation Inc. Student       
Housing Project, 6.25%, 8/01/34    385  392,350 
Nassau County Industrial Development Agency,       
Refunding RB, New York Institute of Technology       
Project, Series A, 4.75%, 3/01/26    350  362,453 
New York City Industrial Development Agency, RB,       
Lycee Francais de New York Project, Series A (ACA),     
5.38%, 6/01/23    1,500  1,549,875 
New York City Industrial Development Agency,       
Refunding RB, Polytechnic University Project (ACA),     
5.25%, 11/01/37    460  443,845 
New York State Dormitory Authority, RB:       
5.83%, 7/01/39 (f)    225  195,905 
Brooklyn Law School, Series B (Syncora),       
5.13%, 7/01/30    2,000  2,049,360 
New School University (NPFGC), 5.00%, 7/01/31  1,425  1,434,975 
Rochester Institute of Technology, Series A,       
6.00%, 7/01/33    625  704,281 
University of Rochester, Series A, 5.13%, 7/01/39  250  268,433 
Vassar College, 5.00%, 7/01/49    400  427,368 
New York State Dormitory Authority, Refunding RB:       
Brooklyn Law School, 5.75%, 7/01/33    250  275,715 
Teachers College, 5.50%, 3/01/39    650  701,207 
Suffolk County Industrial Development Agency,       
Refunding RB, New York Institute of Technology       
Project, 5.00%, 3/01/26    410  421,123 
Trust for Cultural Resources, RB, Series A:       
Carnegie Hall, 4.75%, 12/01/39    925  955,007 
Juilliard School, 5.00%, 1/01/39    1,050  1,141,571 
Yonkers Industrial Development Agency New York,       
RB, Sarah Lawrence College Project, Series A,       
6.00%, 6/01/41    500  534,675 
      17,374,079 
Health — 16.4%       
Clarence Industrial Development Agency, RB,       
Bristol Village Project (Ginnie Mae), 6.00%, 1/20/44  1,670  1,750,577 
Genesee County Industrial Development Agency       
New York, Refunding RB, United Memorial Medical       
Center Project, 5.00%, 12/01/27    250  221,225 
New York City Industrial Development Agency, RB,       
Eger Harbor Project, Series A (Ginnie Mae):       
4.95%, 11/20/32    1,070  1,096,386 
5.88%, 5/20/44    975  1,049,061 
New York State Dormitory Authority, MRB, St. Barnabas,     
Series A (FHA), 5.00%, 2/01/31    1,500  1,523,760 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

29



Schedule of Investments (continued)

BlackRock New York Municipal Income Trust II (BFY)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
New York (continued)     
Health (concluded)     
New York State Dormitory Authority, RB:     
New York Hospital Medical Center-Queens (FHA),     
4.75%, 2/15/37  $ 315  $ 308,029 
New York State Association for Retarded     
Children, Inc., Series A, 6.00%, 7/01/32  350  387,090 
New York University Hospital Center, Series B,     
5.63%, 7/01/37  530  553,611 
North Shore-Long Island Jewish Health System,     
Series A, 5.50%, 5/01/37  750  790,620 
New York State Dormitory Authority, Refunding RB:     
Kateri Residence, 5.00%, 7/01/22  2,000  2,103,620 
Mount Sinai Hospital, Series A, 5.00%, 7/01/26  575  613,864 
North Shore-Long Island Jewish Health System,     
Series E, 5.50%, 5/01/33  500  527,805 
Saratoga County Industrial Development Agency     
New York, RB, Saratoga Hospital Project, Series B,     
5.25%, 12/01/32  350  353,119 
Suffolk County Industrial Development Agency     
New York, Refunding RB, Jeffersons Ferry Project,     
5.00%, 11/01/28  450  434,345 
Westchester County Industrial Development Agency     
New York, MRB, Kendal on Hudson Project, Series A,     
6.38%, 1/01/24  750  752,685 
    12,465,797 
Housing — 3.2%     
New York City Housing Development Corp., RB,     
Series J-2-A, AMT, 4.75%, 11/01/27  1,420  1,435,279 
New York State HFA, RB, Highland Avenue     
Senior Apartments, Series A, AMT (SONYMA),     
5.00%, 2/15/39  1,000  963,400 
    2,398,679 
State — 5.3%     
New York State Dormitory Authority, ERB, Series B,     
5.75%, 3/15/36  300  347,766 
New York State Dormitory Authority, LRB, Municipal     
Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30  1,000  1,031,310 
New York State Urban Development Corp., RB, State     
Personal Income Tax, Series B, 5.00%, 3/15/35  2,000  2,099,160 
State of New York, GO, Series A, 5.00%, 2/15/39  500  535,560 
    4,013,796 
Tobacco — 7.8%     
New York Counties Tobacco Trust III, RB, Tobacco     
Settlement Pass-Thru, Turbo, 6.00%, 6/01/43  2,535  2,320,691 
TSASC Inc. New York, RB, Tobacco Settlement     
Asset-Backed, Series 1, 5.75%, 7/15/12 (b)  3,250  3,580,363 
    5,901,054 
Transportation — 19.8%     
Metropolitan Transportation Authority, RB:     
Series 2008C, 6.50%, 11/15/28  750  899,160 
Series B, 4.50%, 11/15/37  500  506,730 
Metropolitan Transportation Authority, Refunding RB,     
Series A:     
5.13%, 1/01/29  3,000  3,165,900 
5.00%, 11/15/30  5,000  5,322,950 
(NPFGC), 5.25%, 11/15/31  1,250  1,330,738 

 

    Par   
Municipal Bonds    (000)  Value 
New York (concluded)       
Transportation (concluded)       
Port Authority of New York & New Jersey, RB:       
Consolidated, 116th Series, 4.13%, 9/15/32  $ 2,000  $ 2,028,940 
Consolidated, 161st Series, 4.50%, 10/15/37    500  514,690 
Special Project, JFK International Air Terminal,       
Series 6, AMT (NPFGC), 6.25%, 12/01/13    1,000  1,069,750 
Triborough Bridge & Tunnel Authority, RB, General       
Purpose, Series A, 5.00%, 1/01/32    150  156,231 
      14,995,089 
Utilities — 13.2%       
Long Island Power Authority, RB:       
CAB (AGM), 5.22%, 6/01/28 (c)    3,515  1,755,496 
General, Series C (CIFG), 5.25%, 9/01/29    1,000  1,179,980 
Long Island Power Authority, Refunding RB, Series A:       
5.50%, 4/01/24    500  576,375 
6.25%, 4/01/33    150  177,179 
New York City Municipal Water Finance Authority, RB,       
Second General Resolution (NPFGC), 4.50%, 6/15/37  500  506,325 
New York City Municipal Water Finance Authority,       
Refunding RB, Series A, 5.13%, 6/15/34    4,000  4,227,040 
New York State Environmental Facilities Corp.,       
Refunding RB, Revolving Funds, New York City       
Water Project, Series A, 5.00%, 6/15/37    1,500  1,619,235 
      10,041,630 
Total Municipal Bonds in New York      107,498,688 
Guam — 1.6%       
State — 0.7%       
Territory of Guam, GO, Series A, 7.00%, 11/15/39    485  540,916 
Tobacco — 0.4%       
Guam Economic Development & Commerce Authority,     
Refunding RB, Tobacco Settlement Asset-Backed,       
5.63%, 6/01/47    375  319,237 
Utilities — 0.5%       
Guam Government Waterworks Authority, Refunding RB,     
Water, 5.88%, 7/01/35    400  405,308 
Total Municipal Bonds in Guam      1,265,461 
Multi-State — 5.6%       
Housing — 5.6%       
Centerline Equity Issuer Trust (g)(h):       
5.75%, 5/15/15    500  530,390 
6.00%, 5/15/15    1,500  1,585,770 
6.00%, 5/15/19    1,000  1,078,010 
6.30%, 5/15/19    1,000  1,082,150 
Total Municipal Bonds in Multi-State      4,276,320 
Puerto Rico — 7.1%       
County/City/Special District/School District — 0.6%     
Puerto Rico Sales Tax Financing Corp., RB, CAB,       
Series A, 6.39%, 8/01/32 (c)    750  204,593 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
CAB, Series A (NPFGC), 5.78%, 8/01/41 (c)    1,500  251,145 
      455,738 

 

See Notes to Financial Statements.

30 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (concluded)

BlackRock New York Municipal Income Trust II (BFY)

(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico (concluded)     
Housing — 1.4%     
Puerto Rico Housing Finance Authority, Refunding RB,     
Subordinate, Capital Fund Modernization,     
5.13%, 12/01/27  $ 1,000  $ 1,039,810 
State — 0.9%     
Commonwealth of Puerto Rico, GO, Refunding, Public     
Improvement, Series C, 6.00%, 7/01/39  340  368,305 
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
CAB, Series A (AMBAC), 5.14%, 8/01/54 (c)  5,000  340,250 
    708,555 
Tobacco — 0.6%     
Children’s Trust Fund, Refunding RB, Asset-Backed,     
5.63%, 5/15/43  500  434,915 
Transportation — 2.9%     
Puerto Rico Highway & Transportation Authority,     
Refunding RB, Series D, 5.38%, 7/01/12 (b)  2,000  2,176,160 
Utilities — 0.7%     
Puerto Rico Electric Power Authority, Refunding RB,     
Series VV (NPFGC), 5.25%, 7/01/29  500  557,420 
Total Municipal Bonds in Puerto Rico    5,372,598 
Total Municipal Bonds — 156.0%    118,413,067 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (i)     
New York — 0.4%     
Utilities — 0.4%     
New York City Municipal Water Finance Authority, RB,     
Fiscal 2009, Series A, 5.75%, 6/15/40  240  276,285 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 0.4%    276,285 
Total Long-Term Investments     
(Cost — $113,041,256) — 156.4%    118,689,352 
Short-Term Securities  Shares   
BIF New York Municipal Money Fund 0.00% (j)(k)  935,140  935,140 
Total Short-Term Securities     
(Cost — $935,140) — 1.2%    935,140 
Total Investments (Cost — $113,976,396*) — 157.6%    119,624,492 
Other Assets Less Liabilities — 1.2%    885,909 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (0.2)%    (160,024) 
Preferred Shares, at Redemption Value — (58.6)%    (44,478,341) 
Net Assets Applicable to Common Shares — 100.0%    $ 75,872,036 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 113,653,735 
Gross unrealized appreciation  $ 6,792,201 
Gross unrealized depreciation  (981,384) 
Net unrealized appreciation  $ 5,810,817 

 

(a) Variable rate security. Rate shown is as of report date.
(b) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.

(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Non-income producing security.
(f) Represents a step-up bond that pays an initial coupon rate for the first period and
then a higher coupon rate for the following periods. Rate shown reflects the current
yield as of report date.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(h) Security represents a beneficial interest in a trust. The collateral deposited into the
trust is federally tax-exempt revenue bonds issued by various state or local govern-
ments, or their respective agencies or authorities. The security is subject to remarket-
ing prior to its stated maturity.
(i) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(j) Investments in companies considered to be an affiliate of the Trust during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
BIF New York         
Municipal         
Money Fund  756,077  179,063  935,140  $ 69 

 

(k) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized market
indexes or ratings group indexes, and/or as defined by Trust management. This defini-
tion may not apply for purposes of this report, which may combine such sector sub-
classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1      $118,689,352    $118,689,352 
Short-Term           
Securities  $ 935,140      935,140 
Total  $ 935,140  $118,689,352    $119,624,492 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

31



Schedule of Investments August 31, 2010

BlackRock Virginia Municipal Bond Trust (BHV)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Virginia — 108.9%       
Corporate — 11.6%       
Chesterfield County EDA, RB, Virginia Electric Power Co.     
Project, Series A, AMT, 5.60%, 11/01/31  $ 500  $ 507,470 
Isle Wight County IDA Virginia, RB, Series A, AMT,       
5.70%, 11/01/27    1,300  1,309,607 
Louisa IDA, Refunding RB, Virginia Electric &       
Power Co. Project, Series A, Mandatory Put Bonds,       
5.38%, 11/01/35 (a)    1,000  1,100,560 
      2,917,637 
County/City/Special District/School District — 17.5%     
Celebrate North Community Development Authority,       
Special Assessment Bonds, Celebrate Virginia North     
Project, Series B, 6.75%, 3/01/34    1,465  1,065,480 
County of Prince William Virginia, RB, 5.00%, 12/01/21  500  533,995 
Dulles Town Center Community Development Authority,     
Special Assessment Bonds, Dulles Town Center       
Project, 6.25%, 3/01/26    935  923,144 
Fairfax County Redevelopment & Housing Authority, RB,     
Fairfax Redevelopment & Housing, 5.00%, 10/01/39  1,500  1,641,960 
White Oak Village Shops Community Development       
Authority, Special Assessment Bonds, Special       
Assessment, 5.30%, 3/01/17    234  238,895 
      4,403,474 
Education — 7.4%       
Virginia College Building Authority, Refunding RB,       
Washington & Lee University Project (NPFGC):       
5.25%, 1/01/26    500  616,770 
5.25%, 1/01/31    1,000  1,237,790 
      1,854,560 
Health — 18.7%       
Danville IDA Virginia, Refunding RB, Danville Regional     
Medical Center (AMBAC), 5.25%, 10/01/28 (b)    1,000  1,202,040 
Fairfax County EDA, Refunding RB, Goodwin House Inc.,     
5.00%, 10/01/27    1,000  1,017,860 
Henrico County EDA, Refunding RB, Bon Secours,       
Series A, 5.60%, 11/15/30    1,440  1,468,858 
Peninsula Ports Authority, Refunding RB, Virginia Baptist     
Homes, Series C, 5.40%, 12/01/33    500  339,330 
Winchester IDA Virginia, RB, Valley Health System       
Obligation, Series E, 5.63%, 1/01/44    650  683,241 
      4,711,329 
Housing — 6.3%       
Virginia HDA, RB, Rental Housing:       
Series B, 5.63%, 6/01/39    1,000  1,074,560 
Series D, 4.60%, 9/01/40    500  504,910 
      1,579,470 
State — 8.2%       
Virginia College Building Authority, RB, Public       
Higher Education Financing Program, Series A,       
5.00%, 9/01/33    1,000  1,090,040 
Virginia Public School Authority, RB, School Financing:     
6.50%, 12/01/35    360  426,020 
1997 Resolution, Series B, 5.25%, 8/01/33    500  555,285 
      2,071,345 
Tobacco — 2.7%       
Tobacco Settlement Financing Corp. Virginia,       
Refunding RB, Senior Series B1, 5.00%, 6/01/47    1,000  671,930 

 

    Par   
Municipal Bonds    (000)  Value 
Virginia (concluded)       
Transportation — 13.8%       
City of Norfolk Virginia, Refunding RB, Series B (AMBAC),     
5.50%, 2/01/31  $ 550  $ 550,688 
Norfolk Airport Authority Virginia, RB, Series A (NPFGC),     
5.13%, 7/01/31    1,500  1,510,545 
Richmond Metropolitan Authority Virginia, Refunding RB     
(NPFGC), 5.25%, 7/15/22    500  562,745 
Virginia Port Authority, Refunding RB:       
5.00%, 7/01/40    300  319,365 
AMT (AGM), 5.00%, 7/01/24    500  530,295 
      3,473,638 
Utilities — 22.7%       
County of Spotsylvania Virginia, RB (AGM),       
5.00%, 6/01/37    855  918,167 
Fairfax County Water Authority, Refunding RB,       
5.00%, 4/01/27    1,205  1,267,094 
Virginia Resources Authority, RB:       
Infrastructure, 5.13%, 5/01/27    635  649,402 
Senior, Virginia Pooled Financing Program, Series B,     
5.00%, 11/01/33    2,000  2,212,900 
State Revolving Fund, 5.00%, 10/01/30    575  651,647 
      5,699,210 
Total Municipal Bonds in Virginia      27,382,593 
District of Columbia — 7.5%       
Transportation — 7.5%       
Metropolitan Washington Airports Authority, RB:       
First Senior Lien, Series A, 5.00%, 10/01/39    290  305,567 
First Senior Lien, Series A, 5.25%, 10/01/44    460  491,487 
Series B, 5.00%, 10/01/29    1,000  1,086,620 
Total Municipal Bonds in District of Columbia      1,883,674 
Guam — 0.9%       
County/City/Special District/School District — 0.9%     
Territory of Guam, RB, Section 30, Series A,       
5.63%, 12/01/29    200  212,192 
Total Municipal Bonds in Guam      212,192 
Multi-State — 6.6%       
Housing — 6.6%       
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (c)(d)  1,500  1,656,960 
Total Municipal Bonds in Multi-State      1,656,960 
Puerto Rico — 4.6%       
Tobacco — 4.6%       
Children’s Trust Fund, Refunding RB, Asset-Backed,       
5.38%, 5/15/33    1,175  1,163,497 
Total Municipal Bonds in Puerto Rico      1,163,497 
U.S. Virgin Islands — 0.4%       
County/City/Special District/School District — 0.4%     
Virgin Islands Public Finance Authority, RB, Senior Lien,     
Capital Projects, Series A-1, 5.00%, 10/01/39    100  101,161 
Total Municipal Bonds in U.S. Virgin Islands      101,161 
Total Municipal Bonds — 128.9%      32,400,077 

 

See Notes to Financial Statements.

32 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (concluded)

BlackRock Virginia Municipal Bond Trust (BHV)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (e)  (000)  Value 
Virginia — 29.3%     
Education — 8.7%     
University of Virginia, Refunding RB, General,     
5.00%, 6/01/40  $ 2,000  $ 2,176,500 
Health — 8.5%     
Fairfax County IDA Virginia, Refunding RB, Health Care,     
Inova Health System, Series A, 5.50%, 5/15/35  999  1,093,201 
Virginia Small Business Financing Authority,     
Refunding RB, Sentara Healthcare, 5.00%, 11/01/40  1,000  1,050,327 
    2,143,528 
Housing — 12.1%     
Virginia HDA, RB, Sub-Series H-1 (NPFGC),     
5.38%, 7/01/36  3,000  3,055,170 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 29.3%    7,375,198 
Total Long-Term Investments     
(Cost — $37,567,982) — 158.2%    39,775,275 
Short-Term Securities  Shares   
FFI Institutional Tax-Exempt Fund, 0.22% (f)(g)  164,857  164,857 
Total Short-Term Securities     
(Cost — $164,857) — 0.7%    164,857 
Total Investments (Cost — $37,732,839*) — 158.9%    39,940,132 
Other Assets Less Liabilities — 1.6%    397,904 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (14.0)%    (3,521,506) 
Preferred Shares, at Redemption Value — (46.5)%    (11,675,731) 
Net Assets — 100.0%    $ 25,140,799 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 34,130,841 
Gross unrealized appreciation  $ 2,778,736 
Gross unrealized depreciation  (489,061) 
Net unrealized appreciation  $ 2,289,675 

 

(a) Variable rate security. Rate shown is as of report date.
(b) Security is collateralized by Municipal or US Treasury obligations.
(c) Security represents a beneficial interest in a trust. The collateral deposited into
the trust is federally tax-exempt revenue bonds issued by various state or local
governments, or their respective agencies or authorities. The security is subject to
remarketing prior to its stated maturity.
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(e) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(f) Investments in companies considered to be an affiliate of the Trust during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
FFI Institutional         
Tax-Exempt Fund    164,857  164,857  $ 541 

 

(g) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine sector sub-
classifications for reporting ease.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1      $39,775,275    $39,775,275 
Short-Term           
Securities  $ 164,857      164,857 
Total  $ 164,857  $39,775,275    $39,940,132 
1 See above Schedule of Investments for values in each sector.   

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

33



Schedule of Investments August 31, 2010

The Massachusetts Health & Tax-Exempt Trust (MHE)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
Massachusetts — 140.0%       
Corporate — 4.6%       
Massachusetts Development Finance Agency,       
RB, Ogden Haverhill Project, Series A, AMT,       
6.70%, 12/01/14  $ 410  $ 417,544 
Massachusetts Health & Educational Facilities       
Authority, RB, Cape Cod Healthcare Obligor (AGC),       
5.00%, 11/15/31    1,000  1,036,520 
      1,454,064 
Education — 78.9%       
Massachusetts Development Finance Agency, RB:       
Boston University, Series T-1 (AMBAC),       
5.00%, 10/01/39    1,000  1,027,940 
College Issue, Series B (Syncora), 5.25%, 7/01/33  860  878,069 
College of Pharmacy & Allied Health, Series D       
(AGC), 5.00%, 7/01/27    500  533,290 
Smith College, 5.00%, 7/01/35    2,000  2,073,640 
WGBH Educational Foundation, Series A (AMBAC),     
5.75%, 1/01/42    1,100  1,284,316 
Wheeler School Issue, 6.50%, 12/01/29    540  541,550 
Massachusetts Development Finance Agency,       
Refunding RB:       
Boston University, Series P, 5.45%, 5/15/59    1,500  1,656,930 
Clark University (Syncora), 5.13%, 10/01/35    500  517,025 
Western New England, Series A (AGC),       
5.00%, 9/01/33    250  256,102 
Wheelock College, Series C, 5.25%, 10/01/37    1,000  998,520 
Williston Northampton School Project (Syncora),       
5.00%, 10/01/25    500  511,000 
Worcester Polytechnic Institute (NPFGC),       
5.00%, 9/01/27    1,985  2,128,952 
Massachusetts Health & Educational Facilities       
Authority, RB:       
Harvard University, Series B, 5.00%, 10/01/38    400  437,080 
Harvard University, Series FF, 5.13%, 7/15/37    850  873,247 
Northeastern University, Series R, 5.00%, 10/01/33  225  232,900 
Simmons College, Series F (FGIC),       
5.00%, 10/01/13 (a)    1,000  1,135,530 
Springfield College, 5.63%, 10/15/40    500  524,880 
Tufts University, 5.38%, 8/15/38    1,000  1,112,320 
University of Massachusetts, Series C (NPFGC),       
5.13%, 10/01/34    230  232,956 
Massachusetts Health & Educational Facilities Authority,     
Refunding RB:       
Berklee College of Music, Series A,       
5.00%, 10/01/37    1,000  1,023,300 
Boston College, Series N, 5.13%, 6/01/37    1,000  1,084,380 
Harvard University, Series A, 5.50%, 11/15/36    100  116,829 
Tufts University, Series M, 5.50%, 2/15/27    1,000  1,268,800 
Wellesley College, 5.00%, 7/01/33    1,500  1,604,010 
Massachusetts Health & Educational Facilities Authority,     
Wheaton College, Series D, 6.00%, 1/01/18    950  950,465 
Massachusetts State College Building Authority, RB,       
Series A (AMBAC), 5.00%, 5/01/31    1,000  1,060,610 
Massachusetts State College Building Authority,       
Refunding RB, Series B (Syncora), 5.50%, 5/01/39  825  977,031 
      25,041,672 

 

    Par   
Municipal Bonds    (000)  Value 
Massachusetts (concluded)       
Health — 47.4%       
Massachusetts Development Finance Agency, RB:       
First Mortgage, Edgecombe Project, Series A,       
6.75%, 7/01/21  $ 855  $ 881,548 
First Mortgage, Overlook Communities, Series A,       
6.13%, 7/01/24    850  773,602 
Seven Hills Foundation & Affiliates (Radian),       
5.00%, 9/01/35    500  435,675 
Massachusetts Development Finance Agency,       
Refunding RB:       
Carleton-Willard Village, 5.63%, 12/01/30    500  516,145 
First Mortgage, Brookhaven, Series A (Radian),       
5.00%, 3/01/35    1,250  1,111,113 
Massachusetts Health & Educational Facilities       
Authority, RB:       
Baystate Medical Center, Series F, 5.75%, 7/01/33  1,000  1,017,110 
Berkshire Health System, Series E,       
6.25%, 10/01/31    350  356,300 
Berkshire Health System, Series F (AGC),       
5.00%, 10/01/19    1,000  1,076,750 
Children’s Hospital, Series M, 5.25%, 12/01/39    600  639,780 
Children’s Hospital, Series M, 5.50%, 12/01/39    500  542,575 
Lahey Clinic Medical Center, Series D,       
5.25%, 8/15/37    1,000  1,021,580 
Milford-Whitinsville Hospital, Series D,       
6.35%, 7/15/12 (a)    750  838,920 
Southcoast Health Obligation, Series D,       
5.00%, 7/01/39    500  507,100 
Winchester Hospital, 5.25%, 7/01/38 (b)    1,000  1,000,690 
Massachusetts Health & Educational Facilities Authority,     
Refunding RB:       
Caregroup, Series E-1, 5.00%, 7/01/28    500  511,680 
Christopher House, Series A, 6.88%, 1/01/29    470  470,442 
Healthcare System, Covenant, 6.00%, 1/01/12 (a)  170  184,504 
Massachusetts Health & Educational Facilities Authority,     
Refunding RB :       
Healthcare System, Covenant, 6.00%, 1/01/12 (a)  85  92,252 
Healthcare System, Covenant, 6.00%, 7/01/22    630  651,722 
Healthcare System, Covenant, 6.00%, 7/01/31    315  322,226 
Partners Healthcare System, Series B,       
5.25%, 7/01/29    1,000  1,005,820 
Valley Regional Health System, Series C (AMBAC),     
5.75%, 7/01/18    395  395,130 
Massachusetts Industrial Finance Agency, RB, Age       
Institute of Massachusetts Project, 8.05%, 11/01/25  675  675,797 
      15,028,461 
Housing — 6.1%       
Massachusetts HFA, HRB, Series B, AMT,       
5.50%, 6/01/41    495  504,306 
Massachusetts HFA, Refunding HRB, Series F, AMT,       
5.70%, 6/01/40    980  1,012,448 
Massachusetts HFA, Refunding RB, Series 132, AMT,       
5.38%, 12/01/27    400  417,784 
      1,934,538 
State — 3.0%       
Massachusetts Development Finance Agency, ERB,       
Middlesex School Project, 5.00%, 9/01/33    400  409,160 
Massachusetts State College Building Authority, RB,       
Series A, 5.50%, 5/01/39    500  554,830 
      963,990 
Total Municipal Bonds in Massachusetts      44,422,725 

 

See Notes to Financial Statements.

34 ANNUAL REPORT

AUGUST 31, 2010



Schedule of Investments (concluded)

The Massachusetts Health & Tax-Exempt Trust (MHE)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico — 12.0%     
County/City/Special District/School District — 3.4%     
Puerto Rico Sales Tax Financing Corp., Refunding RB,     
First Sub-Series C:     
6.00%, 8/01/39  $ 510  $ 562,902 
(AGM), 5.13%, 8/01/42  500  530,100 
    1,093,002 
State — 3.4%     
Puerto Rico Sales Tax Financing Corp., RB, First     
Sub-Series A, 5.75%, 8/01/37  1,000  1,068,960 
Utilities — 5.2%     
Puerto Rico Electric Power Authority, RB, Series WW,     
5.50%, 7/01/38  1,000  1,057,890 
Puerto Rico Electric Power Authority, Refunding RB,     
Series VV (BHAC), 5.25%, 7/01/25  500  596,060 
    1,653,950 
Total Municipal Bonds in Puerto Rico    3,815,912 
Total Municipal Bonds — 152.0%    48,238,637 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (c)     
Massachusetts — 6.9%     
State — 6.9%     
Massachusetts School Building Authority, RB, Series A     
(AGM), 5.00%, 8/15/30  2,009  2,174,234 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 6.9%    2,174,234 
Total Long-Term Investments     
(Cost — $48,253,535) — 158.9%    50,412,871 
Short-Term Securities     
Massachusetts — 0.9%     
Massachusetts Health & Educational Facilities Authority,     
Refunding RB, VRDN, Partners Healthcare System,     
Series D-1, 0.20%, 9/01/10 (d)  300  300,000 
  Shares   
Money Market Fund — 4.6%     
BIF Massachusetts Municipal Money Fund,     
0.00% (e)(f)  1,455,666  1,455,666 
Total Short-Term Securities     
(Cost — $1,755,666) — 5.5%    1,755,666 
Total Investments (Cost — $50,009,201*) — 164.4%    52,168,537 
Liabilities in Excess of Other Assets — (1.9)%    (588,384) 
Liability for Trust Certificates, Including Interest     
Expense and Fees Payable — (4.2)%    (1,339,761) 
Preferred Shares, at Redemption Value — (58.3)%    (18,501,506) 
Net Assets Applicable to Common Shares — 100.0%    $ 31,738,886 

 

* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 48,653,309 
Gross unrealized appreciation  $ 2,443,064 
Gross unrealized depreciation  (267,431) 
Net unrealized appreciation  $ 2,175,633 

 

(a) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Merrill Lynch  $1,000,690  $22,240 

 

(c) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Trust acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(d) Security may have a maturity of more than one year at time of issuance, but has
variable rate and demand features that qualify it as a short-term security. The rate
shown is as of report date and maturity shown is the date the principal owed can
be recovered through demand.
(e) Investments in companies considered to be an affiliate of the Trust during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held    Shares Held   
  at August 31,  Net  at August 31,   
Affiliate  2009  Activity  2010  Income 
BIF Massachusetts         
Municipal         
Money Fund    1,455,666  1,455,666   

 

(f) Represents the current yield as of report date.
For Trust compliance purposes, the Trust’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized mar-
ket indexes or ratings group indexes, and/or as defined by Trust management. This
definition may not apply for purposes of this report, which may combine such sector
sub-classifications for reporting ease.
Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Trust’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information about
the Trust’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of August 31, 2010 in determin-
ing the fair valuation of the Trust’s investments:

Valuation Inputs    Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:         
Long-Term           
Investments1      $50,412,871    $50,412,871 
Short-Term           
Securities  $ 1,455,666  300,000    1,755,666 
Total  $ 1,455,666  $50,712,871    $52,168,537 

 

1 See above Schedule of Investments for values in each sector.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

35



Statements of Assets and Liabilities     
  BlackRock  BlackRock 
  Maryland  MuniHoldings 
  Municipal  New York 
  Bond Trust  Insured Fund, Inc. 
August 31, 2010  (BZM)  (MHN) 
Assets     
Investments at value — unaffiliated1  $ 46,685,916  $ 765,594,539 
Investments at value — affiliated2  1,846,050  8,738,117 
Interest receivable  562,011  8,731,341 
Investments sold receivable     
Income receivable — affiliated  26  280 
Prepaid expenses  2,284  19,195 
Other assets  6,755  71,682 
Total assets  49,103,042  783,155,154 
Accrued Liabilities     
Income dividends payable — Common Shares  162,579  2,403,204 
Investment advisory fees payable  22,561  308,501 
Officer’s and Trustees’ fees payable  8,178  74,390 
Interest expense and fees payable  731  65,600 
Investments purchased payable     
Bank overdraft    224 
Other affiliates payable  152  2,401 
Other accrued expenses payable  58,636  98,956 
Total accrued liabilities  252,837  2,953,276 
Other Liabilities     
Trust certificates3  1,500,000  71,712,600 
Total Liabilities  1,752,837  74,665,876 
Preferred Shares at Redemption Value     
Preferred shares at liquidation preference, plus unpaid dividends4,5,6  16,001,002  243,636,040 
Net Assets Applicable to Common Shareholders  $ 31,349,203  $ 464,853,238 
Net Assets Applicable to Common Shareholders Consist of     
Paid-in capital7,8,9  $ 29,153,612  $ 457,033,768 
Undistributed net investment income  597,167  9,785,199 
Accumulated net realized gain (loss)  22,950  (30,958,785) 
Net unrealized appreciation/depreciation  1,575,474  28,993,056 
Net Assets Applicable to Common Shareholders  $ 31,349,203  $ 464,853,238 
Net asset value per Common Share  $ 15.23  $ 15.09 
1 Investments at cost — unaffiliated  $ 45,110,442  $ 736,601,483 
2 Investments at cost — affiliated  $ 1,846,050  $ 8,738,117 
3 Represents short-term floating rate certificates issued by tender option bond trusts.     
4 Preferred Shares outstanding:     
Par value $0.001 per share  640   
  Par value $0.01 per share     
  Par value $0.10 per share    9,745 
5 Preferred Shares at liquidation preference  $ 25,000  $ 25,000 
6 Preferred Shares authorized  unlimited  12,520 
7 Par value per Common Share  $ 0.001  $ 0.10 
8 Common Shares outstanding  2,057,959  30,810,302 
9 Common Shares authorized  unlimited  200 million 

 

See Notes to Financial Statements.

36 ANNUAL REPORT

AUGUST 31, 2010



BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  The 
New Jersey  New York Insured  New York  New York  Virginia  Massachusetts 
Municipal  Municipal  Municipal  Municipal  Municipal  Health & Education 
Bond Trust  Income Trust  Bond Trust  Income Trust II  Bond Trust  Tax-Exempt Trust 
(BLJ)  (BSE)  (BQH)  (BFY)  (BHV)  (MHE) 
$ 53,684,095  $ 145,574,966  $ 65,900,263  $ 118,689,352  $ 39,775,275  $ 50,712,871 
915,154  1,077,827  563,059  935,140  164,857  1,455,666 
678,379  1,535,550  827,356  1,393,247  583,642  629,152 
        6,000   
24  23  34  27  15   
2,588  20,422  3,136  18,919  1,802  4,226 
6,158  4,580  6,421  7,060  4,109   
55,286,398  148,213,368  67,300,269  121,043,745  40,535,700  52,801,915 
180,725  457,054  223,338  405,944  127,896  164,319 
24,984  61,807  30,931  50,527  18,632  21,352 
7,630  6,168  7,925  8,702  5,317  99 
531  11,030  1,905  84  1,890  166 
238,478          978,450 
           
167  454  208  372  118  158 
61,798  74,312  60,936  67,799  45,701  57,384 
514,313  610,825  325,243  533,428  199,554  1,221,928 
719,783  10,408,503  1,439,010  159,940  3,519,616  1,339,595 
1,234,096  11,019,328  1,764,253  693,368  3,719,170  2,561,523 
18,775,235  40,577,540  22,126,939  44,478,341  11,675,731  18,501,506 
$ 35,277,067  $ 96,616,500  $ 43,409,077  $ 75,872,036  $ 25,140,799  $ 31,738,886 
$ 32,844,231  $ 91,964,492  $ 39,396,200  $ 70,200,028  $ 22,316,763  $ 29,727,233 
613,278  1,579,233  776,644  1,459,815  482,532  563,255 
30,105  (3,405,537)  (124,641)  (1,435,903)  134,211  (710,938) 
1,789,453  6,478,312  3,360,874  5,648,096  2,207,293  2,159,336 
$ 35,277,067  $ 96,616,500  $ 43,409,077  $ 75,872,036  $ 25,140,799  $ 31,738,886 
$ 15.23  $ 14.90  $ 15.65  $ 15.33  $ 16.02  $ 13.52 
$ 51,894,642  $ 139,096,654  $ 62,539,389  $ 113,041,256  $ 37,567,982  $ 48,553,535 
$ 915,154  $ 1,077,827  $ 563,059  $ 935,140  $ 164,857  $ 1,455,666 
751  1,623  885  1,779  467   
          370 
           
$ 25,000  $ 25,000  $ 25,000  $ 25,000  $ 25,000  $ 50,000 
unlimited  unlimited  unlimited  unlimited  unlimited  unlimited 
$ 0.001  $ 0.001  $ 0.001  $ 0.001  $ 0.001  $ 0.01 
2,316,983  6,483,041  2,774,384  4,950,536  1,569,271  2,347,416 
unlimited  unlimited  unlimited  unlimited  unlimited  unlimited 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

37



Statements of Operations     
  BlackRock  BlackRock 
  Maryland  MuniHoldings 
  Municipal  New York 
  Bond Trust  Insured Fund, Inc. 
Year Ended August 31, 2010  (BZM)  (MHN) 
Investment Income     
Interest  $ 2,490,828  $ 36,989,375 
Income — affiliated  1,984  5,458 
Total income  2,492,812  36,994,833 
Expenses     
Investment advisory  309,024  4,146,536 
Professional  43,417  71,881 
Transfer agent  18,621  54,152 
Accounting services  15,907  178,525 
Commissions for Preferred Shares  13,304  363,387 
Printing  9,774  89,769 
Custodian  6,116  35,458 
Officer and Trustees  4,623  58,418 
Registration  888  10,688 
Miscellaneous  34,827  121,653 
Total expenses excluding interest expense and fees  456,501  5,130,467 
Interest expense and fees1  11,354  555,890 
Total expenses  467,855  5,686,357 
Less fees waived by advisor  (63,700)  (635,413) 
Less fees paid indirectly     
Total expenses after fees waived and paid indirectly  404,155  5,050,944 
Net investment income  2,088,657  31,943,889 
Realized and Unrealized Gain (Loss)     
Net realized gain (loss) from:     
Investments  451,818  (272,092) 
Financial futures contracts  (1,952)  (169,301) 
  449,866  (441,393) 
Net change in unrealized appreciation/depreciation on investments  2,210,199  38,026,973 
Total realized and unrealized gain  2,660,065  37,585,580 
Dividends and Distributions to Preferred Shareholders From     
Net investment income  (64,833)  (994,537) 
Net realized gain     
Total dividends and distributions to Preferred Shareholders  (64,833)  (994,537) 
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations  $ 4,683,889  $ 68,534,932 
1 Related to tender option bond trusts.     

 

See Notes to Financial Statements.

38 ANNUAL REPORT

AUGUST 31, 2010



BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  The 
New Jersey  New York Insured  New York  New York  Virginia  Massachusetts 
Municipal  Municipal  Municipal  Municipal  Municipal  Health & Education 
Bond Trust  Income Trust  Bond Trust  Income Trust II  Bond Trust  Tax-Exempt Trust 
(BLJ)  (BSE)  (BQH)  (BFY)  (BHV)  (MHE) 
$ 2,859,578  $ 6,948,507  $ 3,482,560  $ 6,042,839  $ 1,953,123  $ 2,493,488 
820  561  700  727  936   
2,860,398  6,949,068  3,483,260  6,043,566  1,954,059  2,493,488 
340,313  785,163  424,840  644,135  244,359  248,861 
43,511  46,729  44,565  44,367  33,096  39,717 
19,300  19,490  19,330  20,604  19,181  28,901 
15,875  29,080  17,137  20,512  4,472  16,101 
24,710  52,478  26,994  66,155  13,117  28,079 
10,479  24,360  12,361  20,515  8,288  7,359 
6,615  10,703  7,290  9,894  5,575  5,394 
4,907  11,247  5,891  9,486  3,634  3,183 
1,000  9,340  9,330  2,139  677  1,014 
38,992  39,505  40,326  41,137  34,900  28,471 
505,702  1,028,095  608,064  878,944  367,299  407,080 
3,724  84,937  12,055  1,281  12,938  8,451 
509,426  1,113,032  620,119  880,225  380,237  415,531 
(72,724)  (85,308)  (89,119)  (61,441)  (50,071)  (696) 
          (2,532) 
436,702  1,027,724  531,000  818,784  330,166  412,303 
2,423,696  5,921,344  2,952,260  5,224,782  1,623,893  2,081,185 
403,030  7,478  71,717  (252,640)  281,937  183,268 
3,900  (35,625)  (15,112)  (29,501)  (898)  3,264 
406,930  (28,147)  56,605  (282,141)  281,039  186,532 
3,328,634  7,960,451  2,995,199  6,454,641  1,580,295  2,879,578 
3,735,564  7,932,304  3,051,804  6,172,500  1,861,334  3,066,110 
(77,531)  (164,411)  (80,292)  (182,533)  (38,099)  (79,429) 
    (19,829)    (15,111)   
(77,531)  (164,411)  (100,121)  (182,533)  (53,210)  (79,429) 
$ 6,081,729  $ 13,689,237  $ 5,903,943  $ 11,214,749  $ 3,432,017  $ 5,067,866 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

39



Statements of Changes in Net Assets         
  BlackRock Maryland Municipal  BlackRock MuniHoldings New York 
  Bond Trust (BZM)  Insured Fund, Inc. (MHN) 
  Year Ended August 31,  Year Ended August 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  2010  2009  2010  2009 
Operations         
Net investment income  $ 2,088,657  $ 1,968,397  $ 31,943,889  $ 29,052,201 
Net realized gain (loss)  449,866  (403,175)  (441,393)  (2,720,308) 
Net change in unrealized appreciation/depreciation  2,210,199  (968,568)  38,026,973  (6,828,468) 
Dividends and distributions to Preferred Shareholders from:         
Net investment income  (64,833)  (267,792)  (994,537)  (4,263,541) 
Net realized gain    (2,362)     
Net increase in net assets applicable to Common Shareholders resulting         
from operations  4,683,889  326,500  68,534,932  15,239,884 
Dividends and Distributions to Common Shareholders From         
Net investment income  (1,757,802)  (1,621,017)  (26,885,338)  (20,804,641) 
Net realized gain    (6,564)     
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (1,757,802)  (1,627,581)  (26,885,338)  (20,804,641) 
Capital Share Transactions         
Reinvestment of dividends  113,254  122,854  220,939   
Net Assets Applicable to Common Shareholders         
Total increase (decrease) in net assets applicable to Common Shareholders  3,039,341  (1,178,227)  41,870,533  (5,564,757) 
Beginning of year  28,309,862  29,488,089  422,982,705  428,547,462 
End of year  $ 31,349,203  $ 28,309,862  $464,853,238  $422,982,705 
Undistributed net investment income  $ 597,167  $ 331,145  $ 9,785,199  $ 5,762,952 

 

See Notes to Financial Statements.

40 ANNUAL REPORT

AUGUST 31, 2010



BlackRock New Jersey  BlackRock New York Insured  BlackRock New York  BlackRock New York 
Municipal Bond Trust (BLJ)  Municipal Income Trust (BSE)  Municipal Bond Trust (BQH)  Municipal Income Trust II (BFY) 
Year Ended August 31,  Year Ended August 31,  Year Ended August 31,  Year Ended August 31, 
2010  2009  2010  2009  2010  2009  2010  2009 
$ 2,423,696  $ 2,409,259  $ 5,921,344  $ 5,705,372  $ 2,952,260  $ 2,981,458  $ 5,224,782  $ 5,217,311 
406,930  (102,603)  (28,147)  (2,546,471)  56,605  164,258  (282,141)  (95,748) 
3,328,634  (1,440,583)  7,960,451  (34,905)  2,995,199  (841,495)  6,454,641  (1,684,868) 
(77,531)  (322,491)  (164,411)  (700,402)  (80,292)  (371,954)  (182,533)  (757,706) 
        (19,829)  (3,799)     
6,081,729  543,582  13,689,237  2,423,594  5,903,943  1,928,468  11,214,749  2,678,989 
(2,153,928)  (1,984,969)  (5,287,088)  (4,652,443)  (2,634,618)  (2,335,251)  (4,778,921)  (3,927,976) 
        (257,521)  (10,873)     
(2,153,928)  (1,984,969)  (5,287,088)  (4,652,443)  (2,892,139)  (2,346,124)  (4,778,921)  (3,927,976) 
109,800  97,042  72,998  39,052  193,068  18,922  120,935  20,276 
4,037,601  (1,344,345)  8,475,147  (2,189,797)  3,204,872  (398,734)  6,556,763  (1,228,711) 
31,239,466  32,583,811  88,141,353  90,331,150  40,204,205  40,602,939  69,315,273  70,543,984 
$ 35,277,067  $ 31,239,466  $ 96,616,500  $ 88,141,353  $ 43,409,077  $ 40,204,205  $ 75,872,036  $ 69,315,273 
$ 613,278  $ 421,041  $ 1,579,233  $ 1,109,388  $ 776,644  $ 539,568  $ 1,459,815  $ 1,196,487 

 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

41



Statements of Changes in Net Assets (concluded)       
  BlackRock Virginia  The Massachusetts Health & 
  Municipal Bond Trust (BHV)  Education Tax-Exempt Trust (MHE) 
  Year Ended August 31,  Year Ended August 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  2010  2009  2010  2009 
Operations         
Net investment income  $ 1,623,893  $ 1,582,866  $ 2,081,185  $ 1,937,630 
Net realized gain (loss)  281,039  300,733  186,532  (594,998) 
Net change in unrealized appreciation/depreciation  1,580,295  3,780  2,879,578  (398,553) 
Dividends and distributions to Preferred Shareholders from:         
Net investment income  (38,099)  (153,097)  (79,429)  (315,726) 
Net realized gain  (15,111)  (84,115)     
Net increase in net assets applicable to Common Shareholders resulting         
from operations  3,432,017  1,650,167  5,067,866  628,353 
Dividends and Distributions to Common Shareholders From         
Net investment income  (1,511,124)  (1,388,620)  (1,947,321)  (1,469,268) 
Net realized gain  (415,819)  (247,310)     
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (1,926,943)  (1,635,930)  (1,947,321)  (1,469,268) 
Capital Share Transactions         
Reinvestment of dividends  152,628  121,937  43,301   
Net Assets Applicable to Common Shareholders         
Total increase (decrease) in net assets applicable to Common Shareholders  1,657,702  136,174  3,163,846  (840,915) 
Beginning of year  23,483,097  23,346,923  28,575,040  29,415,955 
End of year  $ 25,140,799  $ 23,483,097  $ 31,738,886  $ 28,575,040 
Undistributed net investment income  $ 482,532  $ 407,862  $ 563,255  $ 508,820 

 

See Notes to Financial Statements.

42 ANNUAL REPORT

AUGUST 31, 2010



Financial Highlights    BlackRock Maryland Municipal Bond Trust (BZM) 
    Year Ended August 31,     
  2010       2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 13.81  $ 14.45  $ 14.91  $ 15.98  $ 16.11 
Net investment income  1.021  0.961  1.071    1.08  1.07 
Net realized and unrealized gain (loss)  1.29  (0.68)  (0.36)    (0.99)  (0.08) 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.03)  (0.13)  (0.28)    (0.31)  (0.26) 
Net realized gain    (0.00)2  (0.01)    (0.00)2   
Net increase (decrease) from investment operations  2.28  0.15  0.42    (0.22)  0.73 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.86)  (0.79)  (0.87)    (0.85)  (0.86) 
Net realized gain    (0.00)2  (0.01)    (0.00)2   
Total dividends and distributions to Common Shareholders  (0.86)  (0.79)  (0.88)    (0.85)  (0.86) 
Net asset value, end of year  $ 15.23  $ 13.81  $ 14.45  $ 14.91  $ 15.98 
Market price, end of year  $ 15.91  $ 15.35  $ 15.75  $ 17.43  $ 17.45 
Total Investment Return3             
Based on net asset value  16.80%  1.52%  2.60%    (1.85)%  4.57% 
Based on market price  9.77%  3.53%  (4.33)%    5.08%  15.26% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses4  1.56%  1.83%  1.70%    1.54%  1.64% 
Total expenses after fees waived and before fees paid indirectly4  1.35%  1.50%  1.32%    1.10%  1.17% 
Total expenses after fees waived and paid indirectly4  1.35%  1.50%  1.32%    1.07%  1.11% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees4,5  1.31%  1.39%  1.28%    1.07%  1.11% 
Net investment income4  6.95%  7.62%  7.19%    6.87%  6.76% 
Dividends paid to Preferred Shareholders  0.21%  1.04%  1.89%    1.94%  1.66% 
Net investment income to Common Shareholders  6.74%  6.58%  5.30%    4.93%  5.10% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 31,349  $ 28,310  $ 29,488  $ 30,302  $ 32,354 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 16,000  $ 16,000  $ 16,000  $ 18,000  $ 18,000 
Portfolio turnover  13%  9%  15%    7%   
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 73,985  $ 69,235  $ 71,083  $ 67,089  $ 69,950 

 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

43



Financial Highlights  BlackRock MuniHoldings New York Insured Fund, Inc. (MHN) 
    Year Ended August 31,     
  2010      2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 13.74  $ 13.92  $ 14.40  $ 14.96  $ 15.54 
Net investment income1  1.04  0.94  0.98    1.00  1.03 
Net realized and unrealized gain (loss)  1.21  (0.30)  (0.48)    (0.52)  (0.48) 
Dividends to Preferred Shareholders from net investment income  (0.03)  (0.14)  (0.32)    (0.34)  (0.29) 
Net increase from investment operations  2.22  0.50  0.18    0.14  0.26 
Dividends to Common Shareholders from net investment income  (0.87)  (0.68)  (0.66)    (0.70)  (0.84) 
Net asset value, end of year  $ 15.09  $ 13.74  $ 13.92  $ 14.40  $ 14.96 
Market price, end of year  $ 15.17  $ 12.89  $ 12.12  $ 13.53  $ 14.62 
Total Investment Return2             
Based on net asset value  16.87%  5.19%  1.74%    1.12%  1.98% 
Based on market price  25.24%  13.34%  (5.72)%    (2.78)%  1.36% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses3  1.29%  1.55%  1.65%    1.79%  1.73% 
Total expenses after fees waived3  1.14%  1.35%  1.52%    1.71%  1.65% 
Total expenses after fees waived and excluding interest expense and fees3,4  1.02%  1.05%  1.15%    1.15%  1.15% 
Net investment income3  7.24%  7.45%  6.90%    6.65%  6.94% 
Dividends paid to Preferred Shareholders  0.23%  1.09%  2.24%    2.29%  1.93% 
Net investment income to Common Shareholders  7.01%  6.36%  4.66%    4.36%  5.01% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 464,853  $ 422,983  $ 428,547  $ 443,296  $ 460,638 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 243,625  $ 243,625  $ 252,875  $ 313,000  $ 313,000 
Portfolio turnover  10%  18%  21%    24%  47% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 72,703  $ 68,407  $ 67,379  $ 60,422  $ 61,799 

 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Do not reflect the effect of dividends to Preferred Shareholders.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

44 ANNUAL REPORT

AUGUST 31, 2010



Financial Highlights    BlackRock New Jersey Municipal Bond Trust (BLJ) 
    Year Ended August 31,     
  2010       2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 13.53  $ 14.16  $ 15.38  $ 16.33  $ 16.26 
Net investment income  1.051  1.051  1.141    1.15  1.16 
Net realized and unrealized gain (loss)  1.61  (0.68)  (1.11)    (0.87)  0.18 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.03)  (0.14)  (0.29)    (0.29)  (0.24) 
Net realized gain      (0.00)2      (0.02) 
Net increase (decrease) from investment operations  2.63  0.23  (0.26)    (0.01)  1.08 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.93)  (0.86)  (0.95)    (0.94)  (0.95) 
Net realized gain      (0.01)      (0.06) 
Total dividends and distributions to Common Shareholders  (0.93)  (0.86)  (0.96)    (0.94)  (1.01) 
Net asset value, end of year  $ 15.23  $ 13.53  $ 14.16  $ 15.38  $ 16.33 
Market price, end of year  $ 15.63  $ 13.59  $ 14.76  $ 16.90  $ 18.30 
Total Investment Return3             
Based on net asset value  20.04%  2.50%  (2.12)%    (0.61)%  6.77% 
Based on market price  22.65%  (1.23)%  (7.15)%    (2.54)%  21.74% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses4  1.54%  1.72%  1.67%    1.47%  1.59% 
Total expenses after fees waived and before fees paid indirectly4  1.32%  1.36%  1.28%    1.03%  1.11% 
Total expenses after fees waived and paid indirectly4  1.32%  1.36%  1.28%    1.00%  1.06% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees4,5  1.31%  1.34%  1.26%    1.00%  1.06% 
Net investment income4  7.32%  8.55%  7.64%    7.11%  7.24% 
Dividends paid to Preferred Shareholders  0.24%  1.14%  1.97%    1.79%  1.50% 
Net investment income to Common Shareholders  7.08%  7.41%  5.67%    5.32%  5.74% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 35,277  $ 31,239  $ 32,584  $ 35,246  $ 37,263 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 18,775  $ 18,775  $ 19,200  $ 20,225  $ 20,225 
Portfolio turnover  18%  28%  17%    35%   
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 71,974  $ 66,600  $ 67,439  $ 68,578  $ 71,067 

 

1 Based on average Common Shares outstanding.

2 Amount is less than $(0.01) per share.

3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4 Do not reflect the effect of dividends to Preferred Shareholders.

5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

45



Financial Highlights  BlackRock New York Insured Municipal Income Trust (BSE) 
    Year Ended August 31,     
  2010      2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 13.61  $ 13.95  $ 14.58  $ 15.34  $ 15.30 
Net investment income  0.911  0.881  0.961    0.99  1.00 
Net realized and unrealized gain (loss)  1.23  (0.39)  (0.60)    (0.72)  (0.01) 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.03)  (0.11)  (0.25)    (0.26)  (0.24) 
Net realized gain      (0.01)    (0.02)   
Net increase (decrease) from investment operations  2.11  0.38  0.10    (0.01)  0.75 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.82)  (0.72)  (0.70)    (0.70)  (0.71) 
Net realized gain      (0.03)    (0.05)   
Total dividends and distributions to Common Shareholders  (0.82)  (0.72)  (0.73)    (0.75)  (0.71) 
Net asset value, end of year  $ 14.90  $ 13.61  $ 13.95  $ 14.58  $ 15.34 
Market price, end of year  $ 14.91  $ 13.15  $ 13.26  $ 14.12  $ 14.70 
Total Investment Return2             
Based on net asset value  16.04%  3.98%  0.80%    (0.06)%  5.46% 
Based on market price  20.18%  5.70%  (1.07)%    1.01%  0.73% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses3  1.21%  1.53%  1.34%    1.21%  1.25% 
Total expenses after fees waived and before fees paid indirectly3  1.12%  1.33%  1.09%    0.90%  0.92% 
Total expenses after fees waived and paid indirectly3  1.12%  1.33%  1.09%    0.89%  0.90% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees3,4  1.03%  1.05%  0.99%    0.89%  0.90% 
Net investment income3  6.45%  7.16%  6.59%    6.53%  6.63% 
Dividends paid to Preferred Shareholders  0.18%  0.88%  1.74%    1.69%  1.58% 
Net investment income to Common Shareholders  6.27%  6.28%  4.85%    4.84%  5.05% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 96,617  $ 88,141  $ 90,331  $ 94,314  $ 99,255 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 40,575  $ 40,575  $ 41,675  $ 56,000  $ 56,000 
Portfolio turnover  8%  23%  24%    30%  9% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 84,531  $ 79,309  $ 79,196  $ 67,107  $ 69,324 

 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Do not reflect the effect of dividends to Preferred Shareholders.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

46 ANNUAL REPORT

AUGUST 31, 2010



Financial Highlights    BlackRock New York Municipal Bond Trust (BQH) 
    Year Ended August 31,     
  2010      2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 14.56  $ 14.71  $ 15.39  $ 16.02  $ 16.09 
Net investment income  1.071  1.081  1.141    1.14  1.13 
Net realized and unrealized gain (loss)  1.09  (0.24)  (0.57)    (0.56)  (0.02) 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.03)  (0.14)  (0.29)    (0.29)  (0.25) 
Net realized gain  (0.01)  (0.00)2  (0.01)       
Net increase from investment operations  2.12  0.70  0.27    0.29  0.86 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.94)  (0.85)  (0.93)    (0.92)  (0.93) 
Net realized gain  (0.09)  (0.00)2  (0.02)       
Total dividends and distributions to Common Shareholders  (1.03)  (0.85)  (0.95)    (0.92)  (0.93) 
Net asset value, end of year  $ 15.65  $ 14.56  $ 14.71  $ 15.39  $ 16.02 
Market price, end of year  $ 15.79  $ 14.32  $ 14.62  $ 16.32  $ 16.81 
Total Investment Return3             
Based on net asset value  15.18%  5.97%  1.62%    1.52%  5.51% 
Based on market price  18.15%  4.87%  (4.76)%    2.60%  12.39% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses4  1.49%  1.61%  1.63%    1.47%  1.56% 
Total expenses after fees waived and before fees paid indirectly4  1.27%  1.30%  1.25%    1.02%  1.09% 
Total expenses after fees waived and paid indirectly4  1.27%  1.30%  1.25%    1.00%  1.06% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees4,5  1.24%  1.25%  1.23%    1.00%  1.06% 
Net investment income4  7.07%  8.06%  7.45%    7.16%  7.16% 
Dividends paid to Preferred Shareholders  0.19%  1.01%  1.90%    1.81%  1.60% 
Net investment income to Common Shareholders  6.88%  7.05%  5.55%    5.35%  5.56% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 43,409  $ 40,204  $ 40,603  $ 42,160  $ 43,541 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 22,125  $ 22,125  $ 22,400  $ 24,200  $ 24,200 
Portfolio turnover  22%  30%  19%    23%  12% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 74,052  $ 70,431  $ 70,327  $ 68,560  $ 69,985 

 

1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

47



Financial Highlights    BlackRock New York Municipal Income Trust II (BFY) 
    Year Ended August 31,     
  2010      2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 14.03  $ 14.28  $ 14.84  $ 15.47  $ 15.23 
Net investment income  1.061  1.061  1.081    1.07  1.06 
Net realized and unrealized gain (loss)  1.25  (0.36)  (0.55)    (0.67)  0.14 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.04)  (0.15)  (0.29)    (0.30)  (0.25) 
Net realized gain      (0.01)       
Net increase from investment operations  2.27  0.55  0.23    0.10  0.95 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.97)  (0.80)  (0.77)    (0.73)  (0.71) 
Net realized gain      (0.02)       
Total dividends and distributions to Common Shareholders  (0.97)  (0.80)  (0.79)    (0.73)  (0.71) 
Net asset value, end of year  $ 15.33  $ 14.03  $ 14.28  $ 14.84  $ 15.47 
Market price, end of year  $ 15.48  $ 14.00  $ 13.60  $ 14.22  $ 14.38 
Total Investment Return2             
Based on net asset value  16.69%  5.23%  1.70%    0.69%  6.93% 
Based on market price  18.09%  10.26%  1.08%    3.80%  7.97% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses3  1.21%  1.33%  1.30%    1.25%  1.29% 
Total expenses after fees waived and before fees paid indirectly3  1.13%  1.16%  1.13%    1.01%  1.05% 
Total expenses after fees waived and paid indirectly3  1.13%  1.16%  1.13%    1.00%  1.02% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees3,4  1.13%  1.16%  1.13%    1.00%  1.02% 
Net investment income3  7.21%  8.17%  7.33%    6.92%  6.96% 
Dividends paid to Preferred Shareholders  0.25%  1.19%  1.94%    1.94%  1.66% 
Net investment income to Common Shareholders  6.96%  6.98%  5.39%    4.98%  5.30% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 75,872  $ 69,315  $ 70,544  $ 73,302  $ 76,393 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 44,475  $ 44,475  $ 44,650  $ 44,650  $ 44,650 
Portfolio turnover  16%  16%  12%    27%  22% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 67,651  $ 63,965  $ 64,508  $ 66,048  $ 67,775 

 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Do not reflect the effect of dividends to Preferred Shareholders.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

48 ANNUAL REPORT

AUGUST 31, 2010



Financial Highlights    BlackRock Virginia Municipal Bond Trust (BHV) 
    Year Ended August 31,     
  2010       2009  2008    2007  2006 
Per Share Operating Performance             
Net asset value, beginning of year  $ 15.05  $ 15.03  $ 15.57  $ 16.35  $ 16.34 
Net investment income  1.041  1.021  1.111    1.11  1.10 
Net realized and unrealized gain (loss)  1.19  0.20  (0.45)    (0.68)  0.04 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.02)  (0.10)  (0.30)    (0.27)  (0.26) 
Net realized gain  (0.01)  (0.05)      (0.02)   
Net increase from investment operations  2.20  1.07  0.36    0.14  0.88 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.96)  (0.89)  (0.90)    (0.87)  (0.87) 
Net realized gain  (0.27)  (0.16)      (0.05)   
Total dividends and distributions to Common Shareholders  (1.23)  (1.05)  (0.90)    (0.92)  (0.87) 
Net asset value, end of year  $ 16.02  $ 15.05  $ 15.03  $ 15.57  $ 16.35 
Market price, end of year  $ 18.77  $ 17.50  $ 19.50  $ 17.85  $ 18.45 
Total Investment Return2             
Based on net asset value  14.15%  6.94%  1.59%    0.21%  5.30% 
Based on market price  15.02%  (4.16)%  14.97%    1.80%  12.23% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses3  1.57%  1.75%  1.70%    1.58%  1.68% 
Total expenses after fees waived and before fees paid indirectly3  1.36%  1.45%  1.34%    1.14%  1.22% 
Total expenses after fees waived and paid indirectly3  1.36%  1.45%  1.34%    1.09%  1.15% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees3,4  1.31%  1.37%  1.31%    1.09%  1.15% 
Net investment income3  6.71%  7.43%  7.14%    6.85%  6.83% 
Dividends paid to Preferred Shareholders  0.16%  0.72%  1.90%    1.69%  1.60% 
Net investment income to Common Shareholders  6.55%  6.71%  5.24%    5.16%  5.23% 
Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 25,141  $ 23,483  $ 23,347  $ 24,053  $ 25,097 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 11,675  $ 11,675  $ 12,175  $ 13,525  $ 13,525 
Portfolio turnover  26%  32%  11%    12%  5% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 78,836  $ 75,286  $ 72,948  $ 69,463  $ 71,404 

 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Do not reflect the effect of dividends to Preferred Shareholders.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2010

49



Financial Highlights    The Massachusetts Health & Education Tax-Exempt Trust (MHE) 
      Period       
      January 1,       
      2008 to       
  Year Ended August 31,    Year Ended December 31, 
      August 31,       
  2010  2009  2008  2007  2006  2005 
Per Share Operating Performance             
Net asset value, beginning of period  $ 12.19  $ 12.55  $ 13.10  $ 13.90  $ 13.59  $ 13.74 
Net investment income1  0.89  0.83  0.59  0.92  0.90  0.83 
Net realized and unrealized gain (loss)  1.31  (0.43)  (0.58)  (0.82)  0.47  0.15 
Dividends and distributions to Preferred Shareholders from:             
Net investment income  (0.03)  (0.13)  (0.17)  (0.31)  (0.25)  (0.11) 
Net realized gain          (0.03)  (0.01) 
Net increase (decrease) from investment operations  2.17  0.27  (0.16)  (0.21)  1.09  0.86 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.84)  (0.63)  (0.39)  (0.59)  (0.68)  (0.78) 
Net realized gain        (0.00)2  (0.10)  (0.13) 
Total dividends and distributions to Common Shareholders  (0.84)  (0.63)  (0.39)  (0.59)  (0.78)  (0.91) 
Capital charges with respect to issuance of Preferred Shares            (0.10) 
Net asset value, end of period  $ 13.52  $ 12.19  $ 12.55  $ 13.10  $ 13.90  $ 13.59 
Market price, end of period  $ 13.98  $ 12.00  $ 11.22  $ 11.95  $ 13.10  $ 13.60 
Total Investment Return2             
Based on net asset value  18.40%  3.29%  (1.01)%3  (1.23)%  8.30%  5.46% 
Based on market price  24.37%  13.73%  (2.99)%3  (4.40)%  1.99%  (10.71)% 
Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses4  1.39%  1.54%  1.77%5  1.47%  1.64%  1.30% 
Total expenses after fees waived and paid indirectly4  1.38%  1.54%  1.77%5  1.47%  1.64%  1.30% 
Total expenses after fees waived and paid indirectly             
and excluding interest expense and fees4,6  1.35%  1.45%  1.73%5  1.47%  1.64%  1.30% 
Net investment income4  6.95%  7.50%  6.82%5  6.78%  6.61%  6.00% 
Dividends paid to Preferred Shareholders  0.24%  1.22%  2.03%5  2.27%  2.07%  0.76% 
Net investment income Common Shareholders  6.71%  6.28%  4.79%5  4.51%  4.54%  5.24% 
Supplemental Data             
Net assets applicable to Common Shareholders,             
end of period (000)  $ 31,739  $ 28,575  $ 29,416  $ 30,717  $ 32,581  $ 31,792 
Preferred Shares outstanding at $50,000             
liquidation preference, end of period (000)  $ 18,500  $ 18,500  $ 18,500  $ 20,000  $ 20,000  $ 20,000 
Portfolio turnover  12%  12%  5%  18%  9%  16% 
Asset coverage per Preferred Share at $50,000             
liquidation preference, end of period  $ 135,785  $ 127,234  $ 129,523  $ 126,835  $ 131,484  $ 129,506 

 

1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized.
6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

See Notes to Financial Statements.

50 ANNUAL REPORT

AUGUST 31, 2010



Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock MuniHoldings New York Insured Fund, Inc. ("MHN"), BlackRock
New York Insured Municipal Income Trust ("BSE")(collectively, the “Insured
Trusts”), BlackRock Maryland Municipal Bond Trust ("BZM"), BlackRock
New Jersey Municipal Bond Trust ("BLJ"), BlackRock New York Municipal
Bond Trust (“BQH"), BlackRock Virginia Municipal Bond Trust ("BHV") (col-
lectively the "Bond Trusts"), BlackRock New York Municipal Income Trust II
("BFY") and The Massachusetts Health & Education Tax-Exempt Trust
("MHE") (all, collectively the "Trusts" or individually as a "Trust") are regis-
tered under the Investment Company Act of 1940, as amended (the “1940
Act”), as non diversified, closed-end management investment companies.
The Trusts are organized as Delaware statutory trusts except MHN and
MHE, which are organized as a Maryland corporation and a Massachusetts
business trust, respectively. The Trusts' financial statements are prepared in
conformity with accounting principles generally accepted in the United
States of America ("US GAAP"), which may require management to make
estimates and assumptions that affect the reported amounts and disclo-
sures in the financial statements. Actual results could differ from those
estimates. The Trusts determine, and make available for publication the net
asset value of their Common Shares on a daily basis.

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

Valuation: The Trusts fair value their financial instruments at market value
using independent dealers or pricing services under policies approved by
each Trust’s Board of Directors/Trustees (“the Board”). Municipal invest-
ments (including commitments to purchase such investments on a “when-
issued” basis) are valued on the basis of prices provided by dealers or
pricing services. In determining the value of a particular investment, pricing
services may use certain information with respect to transactions in such
investments, quotations from dealers, pricing matrixes, market transactions
in comparable investments and information with respect to various rela-
tionships between investments. Financial futures contracts traded on
exchanges are valued at their last sale price. Short-term securities with
remaining maturities of 60 days or less may be valued at amortized cost,
which approximates fair value. Investments in open-end investment compa-
nies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued in accordance with a policy approved by the Board as reflecting fair
value ("Fair Value Assets"). When determining the price for Fair Value
Assets, the investment advisor and/or the sub-advisor seeks to determine
the price that each Trust might reasonably expect to receive from the cur-
rent sale of that asset in an arm’s-length transaction. Fair value determina-
tions shall be based upon all available factors that the investment advisor
and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The
Trusts may purchase securities on a when-issued basis and may purchase
or sell securities on a forward commitment basis. Settlement of such

transactions normally occurs within a month or more after the purchase or
sale commitment is made. The Trusts may purchase securities under such
conditions with the intention of actually acquiring them, but may enter into
a separate agreement to sell the securities before the settlement date.
Since the value of securities purchased may fluctuate prior to settlement,
the Trusts may be required to pay more at settlement than the security is
worth. In addition, the purchaser is not entitled to any of the interest
earned prior to settlement. When purchasing a security on a delayed deliv-
ery basis, the Trusts assume the rights and risks of ownership of the secu-
rity, including the risk of price and yield fluctuations. In the event of default
by the counterparty, the Trusts' maximum amount of loss is the unrealized
appreciation of unsettled when-issued transactions, which is shown on the
Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts
leverage their assets through the use of tender option bond trusts (“TOBs”).
A TOB is established by a third party sponsor forming a special purpose
entity, into which one or more funds, or an agent on behalf of the funds,
transfers municipal bonds. Other funds managed by the investment advisor
may also contribute municipal bonds to a TOB into which a Trust has con-
tributed bonds. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates (“TOB Residuals”), which are generally issued to
the participating funds that made the transfer. The TOB Residuals held by a
Trust include the right of a Trust (1) to cause the holders of a proportional
share of the short-term floating rate certificates to tender their certificates
at par, including during instances of a rise in short-term interest rates, and
(2) to transfer, within seven days, a corresponding share of the municipal
bonds from the TOB to a Trust. The TOB may also be terminated without the
consent of a Trust upon the occurrence of certain events as defined in the
TOB agreements. Such termination events may include the bankruptcy or
default of the municipal bond, a substantial downgrade in credit quality of
the municipal bond, the inability of the TOB to obtain quarterly or annual
renewal of the liquidity support agreement, a substantial decline in market
value of the municipal bond or the inability to remarket the short-term
floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to a Trust, which typically
invests the cash in additional municipal bonds. Each Trust’s transfer of the
municipal bonds to a TOB is accounted for as a secured borrowing, there-
fore the municipal bonds deposited into a TOB are presented in the Trusts'
Schedules of Investments and the proceeds from the issuance of the short-
term floating rate certificates are shown as trust certificates in the
Statements of Assets and Liabilities.

Interest income from the underlying municipal bonds are recorded by the
Trusts on an accrual basis. Interest expense incurred on the secured bor-
rowing and other expenses related to remarketing, administration and
trustee services to a TOB are shown as interest expense and fees in the
Statements of Operations. The short-term floating rate certificates have
interest rates that generally reset weekly and their holders have the option
to tender certificates to the TOB for redemption at par at each reset date.
At August 31, 2010, the aggregate value of the underlying municipal bonds

ANNUAL REPORT

AUGUST 31, 2010

51



Notes to Financial Statements (continued)

transferred to TOBs, the related liability for trust certificates and the range
of interest rates on the liability for trust certificates were as follows:

Underlying    
  Municipal Bonds  Liability  Range of 
  Transferred     for Trust  Interest 
  to TOBs       Certificates  Rates 
BZM  $ 3,250,230  $ 1,500,000  0.30% 
MHN  $143,995,453  $ 71,712,600  0.30% – 0.43% 
BLJ  $ 1,302,569  $ 719,783  0.29% – 0.36% 
BSE  $ 18,476,244  $ 10,408,503  0.30% – 0.40% 
BQH  $ 2,816,402  $ 1,439,010  0.30% – 0.36% 
BFY  $ 276,285  $ 159,940  0.30% 
BHV  $ 7,375,198  $ 3,519,616  0.26% – 0.35% 
MHE  $ 2,174,234  $ 1,339,595  0.30% 

 

For the year ended August 31, 2010, the Trusts' average trust certificates
outstanding and the daily weighted average interest rate, including fees,
were as follows:

  Average Trust  Daily Weighted 
  Certificates    Average 
  Outstanding   Interest Rate 
BZM  $ 1,500,000  0.76% 
MHN  $69,080,634  0.81% 
BLJ  $ 451,838  0.82% 
BSE  $10,408,503  0.82% 
BQH  $ 1,482,257  0.81% 
BFY  $ 159,940  0.80% 
BHV  $ 1,729,673  0.75% 
MHE  $ 1,339,595  0.63% 

 

Should short-term interest rates rise, the Trusts' investments in TOBs
may adversely affect the Trusts' net investment income and dividends to
Common Shareholders. Also, fluctuations in the market values of municipal
bonds deposited into the TOB may adversely affect the Trusts' net asset
values per share.

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which
are normally issued at a significant discount from face value and do not
provide for periodic interest payments. Zero-coupon bonds may experience
greater volatility in market value than similar maturity debt obligations
which provide for regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that the Trusts either deliver collateral or segregate assets
in connection with certain investments (e.g., financial futures contracts)
the Trusts will, consistent with SEC rules and/or certain interpretive letters
issued by the SEC, segregate collateral or designate on their books and
records cash or other liquid securities having a market value at least equal
to the amount that would otherwise be required to be physically segre-
gated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each party has requirements
to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the transac-
tions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Dividend income is recorded on the ex-dividend dates. Interest income,

including amortization of premium and accretion of discount on debt secu-
rities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates. The amount and timing of dividends and distribu-
tions are determined in accordance with federal income tax regulations,
which may differ from US GAAP. Dividends and distributions to Preferred
Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Trust's policy to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no federal income tax provision
is required.

The Trusts file US federal and various state and local tax returns. No
income tax returns are currently under examination. The statutes of limita-
tions on the Trusts' US federal tax returns remain open for each of the four
years ended August 31, 2010 (two years ended August 31, 2010, the
period ended August 31, 2008 and the year ended December 31, 2007
for MHE). The statutes of limitations on the Trusts' state and local tax
returns may remain open for an additional year depending upon the juris-
diction. There are no uncertain tax positions that require recognition of a
tax liability.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Trust's Board, non-interested Directors/Trustees (“Independent Trustees”)
may defer a portion of their annual complex-wide compensation. Deferred
amounts earn an approximate return as though equivalent dollar amounts
had been invested in common shares of certain other BlackRock Closed-
End Funds selected by the Independent Trustees. This has approximately
the same economic effect for the Independent Trustees as if the Inde-
pendent Trustees had invested the deferred amounts directly in certain
other BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of each
Trust. Each Trust may, however, elect to invest in common shares of certain
other BlackRock Closed-End Funds selected by the Independent Trustees in
order to match its deferred compensation obligations. Investments to cover
each Trust's deferred compensation liability, if any, are included in other
assets in the Statements of Assets and Liabilities. Dividends and distribu-
tions from the BlackRock Closed-End Fund investments under the plan are
included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Trust are charged to the Trust. Other
operating expenses shared by several funds are pro rated among those
funds on the basis of relative net assets or other appropriate methods.
The Trusts have an arrangement with the custodian whereby fees may be
reduced by credits earned on uninvested cash balances, which, if applica-
ble, are shown as fees paid indirectly in the Statements of Operations. The
custodian imposes fees on overdrawn cash balances, which can be offset
by accumulated credits earned or may result in additional custody charges.

52 ANNUAL REPORT

AUGUST 31, 2010



Notes to Financial Statements (continued)

2. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative
contracts both to increase the returns of the Trusts and to economically
hedge, or protect, their exposure to certain risks such as interest rate risk.
These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavor-
able change in the market rates or value of the underlying instrument or
if the counterparty does not perform under the contract. Counterparty risk
related to exchange-traded financial futures contracts is minimal because
of the protection against defaults provided by the exchange on which
they trade.

Financial Futures Contracts: The Trusts purchase or sell financial futures
contracts and options on financial futures contracts to gain exposure to, or
economically hedge against, changes in interest rates (interest rate risk).
Financial futures contracts are contracts for delayed delivery of securities at
a specific future date and at a specific price or yield. Pursuant to the con-
tract, the Trusts agree to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as margin variation and are recognized by the Trusts
as unrealized gains or losses. When the contract is closed, the Trusts record
a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
The use of financial futures transactions involves the risk of an imperfect
correlation in the movements in the price of financial futures contracts,
interest rates and the underlying assets.

Derivative Instruments Categorized by Risk Exposure:               
The Effect of Derivative Instruments on the Statements of Operations
Year Ended August 31, 2010*

        Net Realized Gain (Loss) from       
  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Interest rate contracts:                 
Financial futures contracts  $ (1,952)  $ (169,301)  $ 3,900  $ (35,625)  $ (15,112)  $ (29,501)  $ (898)  $ 3,264 
* As of August 31, 2010, there were no financial futures contracts outstanding.             
For the year ended August 31, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:   
  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Financial futures contracts:                 
Average number of contracts purchased  1  7  1  2  1  1  1  1 
Average number of contracts sold  6  82  1  18  8  14  5  1 
Average notional value of contracts purchased  $ 57,501  $ 805,015  $ 57,501  $ 172,503  $ 86,252  $ 115,002  $ 57,501  $ 57,501 
Average notional value of contracts sold  $ 689,698  $9,848,996  $ 91,381  $2,108,325  $ 903,191  $1,626,619  $ 630,180  $ 60,921 

 

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC") and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership struc-
ture, PNC is an affiliate of the Trusts for 1940 Act purposes, but BAC and
Barclays are not.

Each Trust entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Manager”), the Trusts' investment advisor, an indirect,
wholly owned subsidiary of BlackRock, to provide investment advisory and
administration services.

The Manager is responsible for the management of each Trust's portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Trust. For such services,
each Trust pays the Manager a monthly fee at the following annual rates of
each Trust’s average weekly net assets except MHN and MHE, which are
based upon average daily net assets as follows:

BZM  0.65% 
MHN  0.55% 
BLJ  0.65% 
BSE  0.55% 
BQH  0.65% 
BFY  0.55% 
BHV  0.65% 
MHE  0.50% 

 

Average weekly net assets and average daily net assets are the average
weekly value or the average daily value of each Trust’s total assets minus
the sum of its accrued liabilities.

The Manager for MHN voluntarily agreed to waive its investment advisory
fee on the proceeds of Preferred Shares and TOBs that exceed 35% of net
assets applicable to Common Shareholders. This amount is included in fees
waived by advisor in the Statements of Operations. For the year ended
August 31, 2010, the waiver was $615,189.

The Manager voluntarily agreed to waive a portion its investment advisory
fees for certain other funds. With respect to BSE, the waiver, as a percent-
age of average weekly net assets is as follows: 0.10% through October
2009 and 0.05% through October 2010. With respect to the Bond Trusts,
the waiver, as a percentage of average weekly net assets, is as follows:
0.15% through April 2010, 0.10% through April 2011 and 0.05% through
April 2012. With respect to BFY, the waiver, as a percentage of average
weekly net assets is 0.05% through July 2012. For the year ended August
31, 2010, the Manager waived the following amounts, which are included
in fees waived by advisor in the Statements of Operations:

BZM  $63,217 
BLJ  $69,562 
BSE  $83,250 
BQH  $86,944 
BFY  $58,558 
BHV  $49,948 

 

ANNUAL REPORT

AUGUST 31, 2010

53



Notes to Financial Statements (continued)

The Manager voluntarily agreed to waive its investment advisory fees by
the amount of investment advisory fees each Trust pays to the Manager
indirectly through its investment in affiliated money market funds, however,
the Manager does not waive its investment advisory fees by the amount of
investment advisory fees paid through each Trust’s investment in other affil-
iated investment companies, if any. These amounts are shown as, or
included in, fees waived by advisor in the Statements of Operations. For
the year ended August 31, 2010, the amounts waived were as follows:

BZM  $ 483 
MHN  $20,224 
BLJ  $ 3,162 
BSE  $ 2,058 
BQH  $ 2,175 
BFY  $ 2,883 
BHV  $ 123 
MHE  $ 696 

 

The Manager entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC (“BIM”) for MHN and MHE and
BlackRock Financial Management, Inc. (“BFM”) for all other Trusts. BIM and
BFM are affiliates of the Manager. The Manager pays BIM and BFM for
services they provide, a monthly fee that is a percentage of the investment
advisory fee paid by each Trust to the Manager.

For the year ended August 31, 2010, the Trusts reimbursed the Manager
for certain accounting services, which are included in accounting services
in the Statements of Operations. The reimbursements were as follows:

BZM  $ 900 
MHN  $14,201 
BLJ  $ 989 
BSE  $ 2,694 
BQH  $ 1,234 
BFY  $ 2,210 
BHV  $ 706 
MHE  $ 942 

 

Certain officers and/or trustees of the Trusts are officers and/or directors of
BlackRock or its affiliates. The Trusts reimburse the Manager for compensa-
tion paid to the Trusts' Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the
year ended August 31, 2010, were as follows:

  Purchases  Sales 
BZM  $ 5,897,799  $ 6,110,299 
MHN  $ 93,569,741  $ 76,732,016 
BLJ  $ 9,689,753  $ 9,249,691 
BSE  $ 13,188,293  $ 10,608,923 
BQH  $ 14,649,705  $ 13,796,696 
BFY  $ 18,303,049  $ 19,046,500 
BHV  $ 11,568,962  $ 9,770,324 
MHE  $ 11,232,573  $ 5,581,511 

 

5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the
United States of America require that certain components of net assets
be adjusted to reflect permanent differences between financial and tax
reporting. These reclassifications have no effect on net assets or net asset
values per share. The following permanent differences as of August 31,
2010 attributable to amortization methods on fixed income securities and
the tax classification of distributions received from a regulated investment
company were reclassified to the following accounts:

  MHN  BQH 
Undistributed net investment income  $ (41,767)  $ (274) 
Accumulated net realized gain (loss)  $ 41,767  $ 274 

 

The tax character of distributions paid during the fiscal years ended August 31, 2010 and August 31, 2009 was as follows:

  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Tax-exempt income                 
8/31/2010  $1,822,635      $27,879,875  $2,206,336  $5,451,499  $2,712,853  $4,961,454  $1,548,109  $1,935,606 
8/31/2009  $1,888,814      $24,970,495  $2,307,460  $5,352,845  $2,707,205  $4,685,682  $1,540,904  $1,753,424 
Ordinary income                 
8/31/2010      $ 25,123    $ 40,602    $ 6,140  $ 91,144 
8/31/2009  —            $ 97,687          $ 76,533  $ 31,570 
Long-term capital gains                 
8/31/2010          $ 238,805    $ 425,904   
8/31/2009  $ 8,921        $ 14,672    $ 255,705   
Total distributions                 
8/31/2010  $1,822,635      $27,879,875  $2,231,459  $5,451,499  $2,992,260  $4,961,454  $1,980,153  $2,026,750 
8/31/2009  $1,897,735      $25,068,182  $2,307,460  $5,352,845  $2,721,877  $4,685,682  $1,873,142  $1,784,994 
As of August 31, 2010, the tax components of accumulated net earnings were as follows:           
  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Undistributed tax-exempt income  $ 500,114  $ 8,612,234  $ 464,561  $1,493,056  $ 667,122  $1,325,879  $ 404,086 $ 565,463 
Undistributed ordinary income  478  3,752  7,616  1,971  480  573  10,927  16 
Undistributed long-term net capital gains  46,907    27,828        125,402   
Capital loss carryforwards    (27,576,484)    (3,176,083)    (1,065,192)    (729,454) 
Net unrealized gains*  1,648,092  26,779,968  1,932,831  6,333,064  3,345,275  5,410,748  2,283,621  2,175,628 
Total  $2,195,591  $ 7,819,470  $2,432,836  $4,652,008  $4,012,877  $5,672,008  $2,824,036  $2,011,653 

 

* The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, book-tax differences in the accrual of income on securites in default, the deferral of post-October capital losses for tax purposes, the timing and recognition of partnership income, the difference between the book and tax treatment of residual interests in tender option bond trusts, the deferral of compensation to trustees, and other book-tax temporary differences.

54 ANNUAL REPORT

AUGUST 31, 2010



Notes to Financial Statements (continued)

As of August 31, 2010, the Funds had capital loss carryforwards
available to offset future realized capital gains through the indicated
expiration dates:

Expires August 31,  MHN  BSE  BFY  MHE 
2013  $15,054,033       
2014  1,097,743       
2015  2,782,666    $ 70,160  $ 35,869 
2016  710,089    383,137  285,683 
2017  4,069,997  $1,631,721  254,346  375,230 
2018  3,861,956  1,544,362  357,549  32,672 
Total  $27,576,484  $3,176,083  $1,065,192  $729,454 

 

6. Concentration, Market and Credit Risk:

Each Trust invests a substantial amount of its assets in issuers located in
a single state or limited number of states. Please see the Schedules of
Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which may reduce
the potential for loss due to credit risk. The market value of these bonds
may fluctuate for other reasons, including market perception of the value
of such insurance, and there is no guarantee that the insurer will meet
its obligation.

In the normal course of business, the Trusts invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (issuer
credit risk). The value of securities held by the Trusts may decline in
response to certain events, including those directly involving the issuers
whose securities are owned by the Trusts; conditions affecting the general
economy; overall market changes; local, regional or global political, social
or economic instability; and currency and interest rate and price fluctua-
tions. Similar to issuer credit risk, the Trusts may be exposed to counter-
party credit risk, or the risk that an entity with which the Trusts have
unsettled or open transactions may fail to or be unable to perform on its
commitments. The Trusts manage counterparty credit risk by entering into
transactions only with counterparties that they believe have the financial
resources to honor their obligations and by monitoring the financial stability
of those counterparties. Financial assets, which potentially expose the
Trusts to market, issuer and counterparty credit risks, consist principally of
financial instruments and receivables due from counterparties. The extent
of the Trusts' exposure to market, issuer and counterparty credit risks with
respect to these financial assets is generally approximated by their value
recorded in the Trusts' Statements of Assets and Liabilities, less any collat-
eral held by the Trusts.

As of August 31, 2010, BZM invested a significant portion of its assets in
the County/City/Special District/School District and Health sectors. MHN
invested a significant portion of its assets in the County/City/Special
District/School District and Transportation sectors. BLJ invested a signifi-
cant portion of its assets in the State sector. BSE invested a significant
portion of its assets in the Education and Transportation sectors. BQH and
BFY invested a significant portion of their assets in the County/City/Special
District/School District sector. MHE invested a significant portion of its
assets in the Education and Health sectors. Changes in economic

conditions affecting the County/City/Special District/School District,
Education, Health, State and Transportation sectors would have a greater
impact on the Trusts and could affect the value, income and/or liquidity of
positions in such securities.

7. Capital Share Transactions:

The Trusts, except MHN, are authorized to issue an unlimited number of
shares (200 million shares for MHN), all of which were initially classified as
Common Shares. The par value for the Trusts, except MHN and MHE, is
$0.001 per share ($0.10 for MHN and $0.01 for MHE). Each Trust's Board
is authorized, however, to reclassify any unissued shares without approval
of Common Shareholders.

Common Shares

Shares issued and outstanding during the years ended August 31,
2010 and 2009 increased by the following amounts as a result of
dividend reinvestment:

  Year Ended August 31, 
  2010   2009 
BZM  7,640  9,282 
MHN  15,164   
BLJ  7,707  7,624 
BSE  5,123  2,972 
BQH  12,821  1,342 
BFY  8,339  1,492 
BHV  8,764  7,591 
MHE  3,349   

 

Preferred Shares

The Preferred Shares are redeemable at the option of each Trust, in whole
or in part, on any dividend payment date at their liquidation preference
per share plus any accumulated and unpaid dividends whether or not
declared. The Preferred Shares are also subject to mandatory redemption
at their liquidation preference plus any accumulated and 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 Articles of
Amendment/Statement of Preferences/Certificates of Vote of Trustees (the
“Governing Instrument”) are not satisfied.

From time to time in the future, each Trust may effect repurchases of its
Preferred Shares at prices below their liquidation preference as agreed
upon by the Trust and seller. Each Trust also may redeem its Preferred
Shares from time to time as provided in the applicable Governing
Instrument. Each Trust intends to effect such redemptions and/or repur-
chases to the extent necessary to maintain applicable asset coverage
requirements or for such other reasons as the Board may determine.

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 (one vote per share) as a single class. However, the hold-
ers of Preferred Shares, voting as a separate class, are also entitled to
elect two Directors/Trustees for each Trust. In addition, the 1940 Act
requires that along with approval by shareholders that might otherwise be
required, the approval of the holders of a majority of any outstanding

ANNUAL REPORT

AUGUST 31, 2010

55



Notes to Financial Statements (continued)

Preferred Shares, voting separately as a class would be required to (a)
adopt any plan of reorganization that would adversely affect the Preferred
Shares, (b) change a Trust’s sub-classification as a closed-end investment
company or change its fundamental investment restrictions or (c) change
its business so as to cease to be an investment company.

The Trusts had the following series of Preferred Shares outstanding,
effective yields and reset frequency as of August 31, 2010:

        Reset 
    Preferred  Effective  Frequency 
  Series  Shares  Yield  Days 
BZM  R-7  640  0.46%  7 
MHN  A  1,479  0.46%  7 
  B  1,479  0.46%  7 
  C  2,366  0.46%  7 
  D  2,864  0.46%  7 
  E  1,557  0.40%  7 
BLJ  M-7  751  0.46%  7 
BSE  R-7  1,623  0.46%  7 
BQH  T-7  885  0.40%  7 
BFY  W-7  1,779  0.46%  7 
BHV  R-7  467  0.46%  7 
MHE  A  185  0.46%  7 
  B  185  0.40%  7 

 

Dividends on seven-day Preferred Shares are cumulative at a rate which is
reset every seven days, based on the results of an auction. If the Preferred
Shares fail to clear the auction on an auction date, each Trust is required
to pay the maximum applicable rate on the Preferred Shares to holders of
such shares for successive dividend periods until such time as the shares
are successfully auctioned. The maximum applicable rate on all series of
Preferred Shares is the higher of 110% of the AA commercial paper rate or
100% of 90% of the Kenny S&P 30-day High Grade Index divided by 1.00
minus the marginal tax rate. The low, high and average dividend rates on
the Preferred Shares for each Trust for the year ended August 31, 2010
were as follows:

  Series  Low  High  Average 
BZM  R-7  0.24%  0.56%  0.41% 
MHN  A  0.26%  0.53%  0.41% 
  B  0.24%  0.56%  0.41% 
  C  0.24%  0.56%  0.41% 
  D  0.24%  0.56%  0.41% 
  E  0.26%  0.52%  0.41% 
BLJ  M-7  0.24%  0.56%  0.41% 
BSE  R-7  0.24%  0.56%  0.40% 
BQH  T-7  0.26%  0.53%  0.41% 
BFY  W-7  0.26%  0.53%  0.41% 
BHV  R-7  0.24%  0.56%  0.41% 
MHE  A  0.26%  0.53%  0.41% 
  B  0.26%  0.52%  0.41% 

 

Since February 13, 2008, the Preferred Shares of the Trusts failed to clear
any of their auctions. As a result, the Preferred Shares dividend rates were
reset to the maximum applicable rate, which ranged from 0.24% to 0.56%
for the year ended August 31, 2010. A failed auction is not an event of
default for the Trusts but it has a negative impact on the liquidity of
Preferred Shares. A failed auction occurs when there are more sellers of a
Trust's auction rate preferred shares than buyers. It is impossible to predict
how long this imbalance will last. A successful auction for the Trusts'
Preferred Shares may not occur for some time, if ever, and even if liquidity
does resume, holders of the Preferred Shares may not have the ability to
sell the Preferred Shares at their liquidation preference.

The Trusts may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the declara-
tion, distribution or purchase, asset coverage with respect to the out-
standing Preferred Shares is less than 200%.

The Trusts pay commissions of 0.15% on the aggregate principal amount
of all shares that fail to clear their auctions and 0.25% on the aggregate
principal amount of all shares that successfully clear their auctions. Certain
broker dealers have individually agreed to reduce commissions for
failed auctions.

Preferred Shares issued and outstanding remained constant for the year
ended August 31, 2010 for all Trusts.

During the year ended August 31, 2009, certain Trusts announced the fol-
lowing redemptions of Preferred Shares at a price of $25,000 per share
plus any accrued and unpaid dividends through the redemption date:

    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
MHN  A  7/09/09  56  $1,400,000 
  B  7/06/09  56  $1,400,000 
  C  7/07/09  90  $2,250,000 
  D  7/06/09  109  $2,725,000 
  E  7/08/09  59  $1,475,000 
BLJ  M-7  7/14/09  17  $ 425,000 
BSE  R-7  7/10/09  44  $1,100,000 
BQH  T-7  7/08/09  11  $ 275,000 
BFY  W-7  7/09/09  7  $ 175,000 
BHV  R-7  7/10/09  20  $ 500,000 

 

The Trusts financed the Preferred Share redemptions with cash received
from TOB transactions.

Preferred Shares issued and outstanding remained constant for the year
ended August 31, 2009 for BZM and MHE.

56 ANNUAL REPORT

AUGUST 31, 2010



Notes to Financial Statements (concluded)

8. Subsequent Events:

Management's evaluation of the impact of all subsequent events on the
Trusts' financial statements was completed through the date the financial
statements were issued and the following items were noted:

Each Trust paid a net investment income dividend on October 1, 2010 to
Common Shareholders of record on September 15, 2010 as follows:

  Common 
  Dividend 
  Per Share 
BZM  $0.0790 
MHN  $0.0795 
BLJ  $0.0780 
BSE  $0.0715 
BQH  $0.0820 
BFY  $0.0835 
BHV  $0.0830 
MHE  $0.0700 

 

The dividends declared on Preferred Shares for the period September 1,
2010 to September 30, 2010 were as follows:

    Dividends 
  Series  Declared 
BZM  R-7  $ 5,636 
MHN  A  $ 3,672 
  B  $ 3,241 
  C  $ 2,222 
  D  $ 3,586 
  E  $ 909 
BLJ  M-7  $ 6,613 
BSE  R-7  $14,292 
BQH  T-7  $ 7,693 
BFY  W-7  $15,628 
BHV  R-7  $ 4,112 
MHE  A  $ 3,216 
  B  $ 3,250 

 

ANNUAL REPORT

AUGUST 31, 2010

57



Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors of
BlackRock MuniHoldings New York Insured Fund, Inc.
and to the Shareholders and Board of Trustees of:
BlackRock Maryland Municipal Bond Trust
BlackRock New Jersey Municipal Bond Trust
BlackRock New York Insured Municipal Income Trust
BlackRock New York Municipal Bond Trust
BlackRock New York Municipal Income Trust II
BlackRock Virginia Municipal Bond Trust
The Massachusetts Health & Education Tax-Exempt Trust
(collectively, the “Trusts”):

We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of BlackRock Maryland
Municipal Bond Trust, BlackRock MuniHoldings New York Insured Fund,
Inc., BlackRock New Jersey Municipal Bond Trust, BlackRock New York
Insured Municipal Income Trust, BlackRock New York Municipal Bond Trust,
BlackRock New York Municipal Income Trust II, BlackRock Virginia Municipal
Bond Trust and The Massachusetts Health & Education Tax-Exempt Trust,
as of August 31, 2010, and the related statements of operations for the
year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the periods presented. These financial statements and financial highlights
are the responsibility of the Trusts’ management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free
of material misstatement. The Trusts are not required to have, nor were
we engaged to perform an audit of their internal control over financial

reporting. Our audits included consideration of internal control over finan-
cial reporting as a basis for designing audit procedures that are appropri-
ate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Trusts’ internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall
financial statement presentation. Our procedures include confirmation of
the securities owned as of August 31, 2010, by correspondence with the
custodians and brokers; where replies were not received from brokers, we
performed other auditing procedures.We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial positions
of BlackRock Maryland Municipal Bond Trust, BlackRock MuniHoldings
New York Insured Fund, Inc., BlackRock New Jersey Municipal Bond Trust,
BlackRock New York Insured Municipal Income Trust, BlackRock New York
Municipal Bond Trust, BlackRock New York Municipal Income Trust II,
BlackRock Virginia Municipal Bond Trust and The Massachusetts Health &
Education Tax-Exempt Trust as of August 31, 2010, the results of their
operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights
for each of the periods presented, in conformity with accounting principles
generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 28, 2010

58 ANNUAL REPORT

AUGUST 31, 2010



Important Tax Information

All of the net investment income distributions paid by BZM, MHN, BSE and
BFY during the taxable year ended August 31, 2010 qualify as tax-exempt
interest dividends for Federal income tax purposes.

The following table summarizes the taxable per share distributions
paid by BLJ, BQH, BHV, and MHE during the taxable year ended
August 31, 2010:

  Payable  Ordinary  Long-Term 
BLJ  Date  Income  Capital Gains 
Common Shareholders  12/31/09  $0.010066   
Preferred Shareholders:       
Series M-7  11/17/09  $2.47   
BQH       
Common Shareholders  12/31/09  $0.013638  $0.080206 
Preferred Shareholders:       
Series T-7  11/04/09  $0.55  $ 3.21 
  11/12/09  $0.57  $ 3.29 
  11/18/09  $0.44  $ 2.68 
  11/25/09  $0.59  $ 3.45 
  12/02/09  $0.59  $ 3.45 
  12/09/09  $0.50  $ 3.01 
  12/16/09  $0.04  $ 0.20 
BHV       
Common Shareholders  12/31/09  $0.003792  $0.262941 
Preferred Shareholders:       
Series R-7  11/06/09    $ 3.22 
  11/13/09  $0.05  $ 2.70 
  11/20/09  $0.05  $ 3.18 
  11/27/09  $0.05  $ 3.54 
  12/04/09  $0.05  $ 3.42 
  12/11/09  $0.05  $ 2.82 
  12/18/09  $0.05  $ 3.06 
  12/28/09  $0.08  $ 4.88 
  1/04/10  $0.07  $ 3.88 
  1/08/10  $0.02  $ 1.28 
MHE       
Common Shareholders  12/31/09  $0.035407   
Preferred Shareholders:       
Series A  11/12/09  $5.97   
  11/19/09  $6.83   
  11/27/09  $8.61   
  12/03/09  $0.62   
Series B  11/12/09  $7.11   
  11/18/09  $5.83   
  11/25/09  $7.53   
  12/02/09  $1.54   

 

All other net investment income distributions paid by the Trusts during
the taxable year ended August 31, 2010 qualify as tax-exempt interest
dividends for Federal income tax purposes. Per share distributions are
based on Common Shares or Preferred Shares outstanding at the time
of distribution.

ANNUAL REPORT

AUGUST 31, 2010

59



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors and the Board of Trustees, as the case may be
(each, a “Board,” and, collectively, the "Boards," and the members of which
are referred to as "Board Members") of each of BlackRock Maryland
Municipal Bond Trust ("BZM"), BlackRock MuniHoldings New York Insured
Fund, Inc. ("MHN"), BlackRock New Jersey Municipal Bond Trust ("BLJ"),
BlackRock New York Insured Municipal Income Trust ("BSE"), BlackRock
New York Municipal Bond Trust ("BQH"), BlackRock New York Municipal
Income Trust II ("BFY"), BlackRock Virginia Municipal Bond Trust ("BHV")
and The Massachusetts Health & Education Tax-Exempt Trust ("MHE" and,
together with BZM, MHN, BLJ, BSE, BQH, BFY and BHV, each, a “ Trust,” and,
collectively, the “Trusts”) met on April 8, 2010 and May 13 — 14, 2010 to
consider the approval of each Trust’s investment advisory agreement (each,
an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”),
each Trust’s investment advisor. Each Board also considered the approval
of the sub-advisory agreement (each, a “Sub-Advisory Agreement”)
between the Manager and BlackRock Financial Management, Inc. or
BlackRock Investment Management, LLC, as applicable (each, a “Sub-
Advisor”), with respect to its Trust. The Manager and the Sub-Advisors are
referred to herein as “BlackRock.” The Advisory Agreements and the Sub-
Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

The Board of each Trust consists of ten individuals, eight of whom are not
“interested persons” of such Trust as defined in the Investment Company
Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The
Board Members are responsible for the oversight of the operations of each
Trust and perform the various duties imposed on the directors of invest-
ment companies by the 1940 Act. The Independent Board Members have
retained independent legal counsel to assist them in connection with their
duties. The Chairman of the Boards is an Independent Board Member. The
Boards have established five standing committees: an Audit Committee, a
Governance and Nominating Committee, a Compliance Committee, a
Performance Oversight Committee and an Executive Committee, each of
which is composed of Independent Board Members (except for the
Executive Committee, which also has one interested Board Member) and is
chaired by an Independent Board Member. The Boards also have two ad
hoc committees, the Joint Product Pricing Committee, which consists of
Independent Board Members and the directors/trustees of the boards of
certain other BlackRock-managed funds, who are not “interested persons”
of their respective funds, and the Ad Hoc Committee on Auction Market
Preferred Shares.

The Agreements

Pursuant to the 1940 Act, the Boards are required to consider the continu-
ation of the Agreements on an annual basis. In connection with this
process, the Boards assessed, among other things, the nature, scope
and quality of the services provided to the Trusts by the personnel of
BlackRock and its affiliates, including investment management, administra-
tive and shareholder services, oversight of fupnd accounting and custody,
marketing services and assistance in meeting applicable legal and regula-
tory requirements.

From time to time throughout the year, each Board, acting directly and
through its committees, considered at each of its meetings factors that
are relevant to its annual consideration of the renewal of the Agreements,
including the services and support provided by BlackRock to the respective
Trust and its shareholders. Among the matters the Board considered were:
(a) investment performance for one-, three- and five-year periods, as appli-
cable, against peer funds, and applicable benchmarks, if any, as well as
senior management's and portfolio managers’ analysis of the reasons for
any over performance or underperformance against a Trust’s peers and/or
benchmark, as applicable; (b) fees, including advisory fees, administration
fees for MHE, and other amounts paid to BlackRock and its affiliates by
each Trust for services such as call center and fund accounting; (c) each
Trust’s operating expenses; (d) the resources devoted to and compliance
reports relating to each Trust’s investment objective, policies and restric-
tions; (e) each Trust’s compliance with its Code of Ethics and compliance
policies and procedures; (f) the nature, cost and character of non-invest-
ment management services provided by BlackRock and its affiliates;

(g) BlackRock’s and other service providers’ internal controls;
(h) BlackRock’s implementation of the proxy voting policies approved by

the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s
implementation of each Trust’s valuation and liquidity procedures; (k) an
analysis of contractual and actual management fees for products with simi-
lar investment objectives across the open-end fund, closed-end fund and
institutional account product channels, as applicable; and (l) periodic
updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 8, 2010 meeting, the Boards
requested and received materials specifically relating to the Agreements.
The Boards are engaged in a process with BlackRock to periodically review
the nature and scope of the information provided to better assist their
deliberations. The materials provided in connection with the April meeting
included (a) information independently compiled and prepared by Lipper,
Inc. (“Lipper”) on Trust fees and expenses, and the investment performance
of each Trust as compared with a peer group of funds as determined by
Lipper and a customized peer group selected by BlackRock, as applicable
(collectively, “Peers”); (b) information on the profitability of the Agreements
to BlackRock and a discussion of fall-out benefits to BlackRock and its
affiliates and significant shareholders; (c) a general analysis provided by
BlackRock concerning investment advisory fees charged to other clients,
such as institutional clients and open-end funds, under similar investment
mandates; (d) the impact of economies of scale; (e) a summary of aggre-
gate amounts paid by each Trust to BlackRock and (f) if applicable, a
comparison of management fees to similar BlackRock closed-end funds,
as classified by Lipper.

At an in-person meeting held on April 8, 2010, the Boards reviewed materi-
als relating to their consideration of the Agreements. As a result of the dis-
cussions that occurred during the April 8, 2010 meeting, the Boards
presented BlackRock with questions and requests for additional informa-

60 ANNUAL REPORT

AUGUST 31, 2010



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

tion and BlackRock responded to these requests with additional written
information in advance of the May 13 — 14, 2010 Board meeting.

At an in-person meeting held on May 13 — 14, 2010, each Trust’s Board,
including the Independent Board Members, unanimously approved the
continuation of the Advisory Agreement between the Manager and each
respective Trust and the Sub-Advisory Agreement between the Manager and
the Sub-Advisor with respect to each Trust, each for a one-year term ending
June 30, 2011. In approving the continuation of the Agreements, the
Boards considered: (a) the nature, extent and quality of the services pro-
vided by BlackRock; (b) the investment performance of each Trust and
BlackRock; (c) the advisory fee and the cost of the services and profits to
be realized by BlackRock and its affiliates from their relationship with each
Trust; (d) economies of scale; and (e) other factors deemed relevant by the
Board Members.

The Boards also considered other matters they deemed important to the
approval process, such as services related to the valuation and pricing of
each Trust’s portfolio holdings, direct and indirect benefits to BlackRock
and its affiliates and significant shareholders from their relationship with
each Trust and advice from independent legal counsel with respect to the
review process and materials submitted for the Boards’ review. The Boards
noted the willingness of BlackRock personnel to engage in open, candid
discussions with the Boards. The Boards did not identify any particular
information as controlling, and each Board Member may have attributed
different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The
Boards, including the Independent Board Members, reviewed the nature,
extent and quality of services provided by BlackRock, including the invest-
ment advisory services and the resulting performance of each Trust.
Throughout the year, the Boards compared each Trust’s performance to the
performance of a comparable group of closed-end funds, and the perform-
ance of a relevant benchmark, if any. The Boards met with BlackRock’s sen-
ior management personnel responsible for investment operations, including
the senior investment officers. The Boards also reviewed the materials pro-
vided by each Trust’s portfolio management team discussing each Trust’s
performance and each Trust’s investment objective, strategies and outlook.

The Boards considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and each Trust’s
portfolio management team, investments by portfolio managers in the
funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s
use of technology, BlackRock’s commitment to compliance, BlackRock's
credit analysis capabilities, BlackRock's risk analysis capabilities and
BlackRock’s approach to training and retaining portfolio managers and
other research, advisory and management personnel. The Boards also
reviewed a general description of BlackRock’s compensation structure with
respect to each Trust’s portfolio management team and BlackRock’s ability
to attract and retain high-quality talent.

In addition to advisory services, the Boards considered the quality of the
administrative and non-investment advisory services provided to each
Trust. BlackRock and its affiliates and significant shareholders provide each
Trust with certain administrative and other services (in addition to any such
services provided to each Trust by third parties) and officers and other per-
sonnel as are necessary for the operations of each Trust. In addition to
investment advisory services, BlackRock and its affiliates provide each Trust
with other services, including (i) preparing disclosure documents, such as
the prospectus and the statement of additional information in connection
with the initial public offering and periodic shareholder reports; (ii) prepar-
ing communications with analysts to support secondary market trading of
each Trust; (iii) assisting with daily accounting and pricing; (iv) preparing
periodic filings with regulators and stock exchanges; (v) overseeing and
coordinating the activities of other service providers; (vi) organizing Board
meetings and preparing the materials for such Board meetings; (vii) prov-
iding legal and compliance support; and (viii) performing other admini-
strative functions necessary for the operation of each Trust, such as tax
reporting, fulfilling regulatory filing requirements, and call center services.
The Boards reviewed the structure and duties of BlackRock’s fund admin-
istration, accounting, legal and compliance departments and considered
BlackRock’s policies and procedures for assuring compliance with
applicable laws and regulations.

B. The Investment Performance of the Trusts and BlackRock: The Boards,
including the Independent Board Members, also reviewed and considered
the performance history of each Trust. In preparation for the April 8, 2010
meeting, the Boards were provided with reports, independently prepared by
Lipper, which included a comprehensive analysis of each Trust’s perform-
ance. The Boards also reviewed a narrative and statistical analysis of the
Lipper data that was prepared by BlackRock, which analyzed various fac-
tors that affect Lipper’s rankings. In connection with their review, the Boards
received and reviewed information regarding the investment performance of
each Trust as compared to a representative group of similar funds as deter-
mined by Lipper and to all funds in each Trust’s applicable Lipper category
and in the case of BZM, MHN, BSE, BQH, BFY, BHV and MHE, a customized
peer group selected by BlackRock. The Boards were provided with a
description of the methodology used by Lipper to select peer funds. The
Boards regularly review the performance of each Trust throughout the year.

The Boards of BZM, MHN, BLJ, BSE, BQH and BHV noted that, in general,
BZM, MHN, BLJ, BSE, BQH and BHV performed better than their respective
Peers in that the performance of BLJ was at or above the median of its
Lipper Performance Composite in each of the one-, three- and five-year
periods reported and that the performance of each of BZM, MHN, BSE,
BQH and BHV were at or above the median of their Customized Lipper
Peer Group Composite in each of the one-, three- and five-year
periods reported.

The Boards of BFY and MHE noted that, in general, BFY and MHE per-
formed better than their respective Peers in that the performance of BFY

ANNUAL REPORT

AUGUST 31, 2010

61



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

and MHE were at or above the median of their Customized Lipper Peer
Group Composite in two of the one-, three- and five-year periods reported.

The Boards noted that BlackRock has made changes to the organization of
the overall fixed income group management structure designed to result in
a strengthened leadership team with clearer accountability.

C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Trusts: The Boards, including the Independent Board
Members, reviewed each Trust’s contractual advisory fee rate compared
with the other funds in its Lipper category. The Boards also compared
each Trust’s total expenses, as well as actual management fees, to those of
other funds in its Lipper category. The Boards considered the services pro-
vided and the fees charged by BlackRock to other types of clients
with similar investment mandates, including separately managed
institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s fin-
ancial condition and profitability with respect to the services it provided
each Trust. The Boards were also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by BlackRock for
services provided to each Trust. The Boards reviewed BlackRock’s profitabil-
ity with respect to each Trust and other funds the Boards currently oversee
for the year ended December 31, 2009 compared to available aggregate
profitability data provided for the year ended December 31, 2008. The
Boards reviewed BlackRock’s profitability with respect to other fund com-
plexes managed by the Manager and/or its affiliates. The Boards reviewed
BlackRock’s assumptions and methodology of allocating expenses in the
profitability analysis, noting the inherent limitations in allocating costs
among various advisory products. The Boards recognized that profitability
may be affected by numerous factors including, among other things, fee
waivers and expense reimbursements by the Manager, the types of funds
managed, expense allocations and business mix, and the difficulty of
comparing profitability as a result of those factors.

The Boards noted that, in general, individual fund or product line profitabil-
ity of other advisors is not publicly available. Nevertheless, to the extent
such information was available, the Boards considered BlackRock’s overall
operating margin, in general, compared to the operating margin for leading
investment management firms whose operations include advising closed-
end funds, among other product types. That data indicates that operating
margins for BlackRock with respect to its registered funds are generally
consistent with margins earned by similarly situated publicly traded com-
petitors. In addition, the Boards considered, among other things, certain
third party data comparing BlackRock’s operating margin with that of
other publicly-traded asset management firms. That third party data indi-
cates that larger asset bases do not, in themselves, translate to higher
profit margins.

In addition, the Boards considered the cost of the services provided to
each Trust by BlackRock, and BlackRock’s and its affiliates’ profits relating

to the management and distribution of each Trust and the other funds
advised by BlackRock and its affiliates. As part of their analysis, the Boards
reviewed BlackRock’s methodology in allocating its costs to the manage-
ment of each Trust. The Boards also considered whether BlackRock has the
financial resources necessary to attract and retain high quality investment
management personnel to perform its obligations under the Agreements
and to continue to provide the high quality of services that is expected by
the Boards.

The Board of each Trust noted that its Trust’s contractual management fee
rate was lower than or equal to the median contractual management fee
rate paid by the Trust’s Peers, in each case, before taking into account any
expense reimbursements or fee waivers.

D. Economies of Scale: The Boards, including the Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of each Trust increase. The Boards also considered
the extent to which each Trust benefits from such economies and whether
there should be changes in the advisory fee rate or structure in order to
enable each Trust to participate in these economies of scale, for example
through the use of breakpoints in the advisory fee based upon the asset
level of each Trust.

The Boards noted that most closed-end fund complexes do not have fund
level breakpoints because closed-end funds generally do not experience
substantial growth after the initial public offering and each fund is man-
aged independently consistent with its own investment objectives. The
Boards noted that only one closed-end fund in the Fund Complex has
breakpoints in its fee structure. Information provided by Lipper also
revealed that only one closed-end fund complex with total closed-end
fund nets assets exceeding $10 billion, as of December 31, 2009, used
a complex level breakpoint structure.

E. Other Factors Deemed Relevant by the Board Members: The Boards,
including the Independent Board Members, also took into account other
ancillary or “fall-out” benefits that BlackRock or its affiliates and significant
shareholders may derive from their respective relationships with the Trusts,
both tangible and intangible, such as BlackRock’s ability to leverage its
investment professionals who manage other portfolios, an increase in
BlackRock’s profile in the investment advisory community, and the engage-
ment of BlackRock’s affiliates and significant shareholders as service
providers to each Trust, including for administrative and distribution serv-
ices. The Boards also considered BlackRock’s overall operations and its
efforts to expand the scale of, and improve the quality of, its operations.
The Boards also noted that BlackRock may use and benefit from third party
research obtained by soft dollars generated by certain mutual fund trans-
actions to assist in managing all or a number of its other client accounts.
The Boards further noted that BlackRock completed the acquisition of a
complex of exchange-traded funds (“ETFs”) on December 1, 2009, and
that BlackRock’s funds may invest in such ETFs without any offset against
the management fees payable by the funds to BlackRock.

62 ANNUAL REPORT

AUGUST 31, 2010



Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

In connection with its consideration of the Agreements, the Boards also
received information regarding BlackRock’s brokerage and soft dollar prac-
tices. The Boards received reports from BlackRock which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.

The Boards noted the competitive nature of the closed-end fund market-
place, and that shareholders are able to sell their respective Trust shares in
the secondary market if they believe that the Trust’s fees and expenses are
too high or if they are dissatisfied with the performance of the Trust.

Conclusion

The Boards, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between the Manager
and each Trust for a one-year term ending June 30, 2011 and the Sub-
Advisory Agreement between the Manager and the applicable Sub-Advisor,
with respect to each Trust, for a one-year term ending June 30, 2011. As
part of its approval, each Board considered the discussions of BlackRock’s
fee structure, as it applies to its respective Trust, being conducted by
the ad hoc Joint Product Pricing Committee. Based upon its evaluation
of all of the aforementioned factors in their totality, the Boards, including
the Independent Board Members, were satisfied that the terms of the
Agreements were fair and reasonable and in the best interest of each Trust
and its shareholders. In arriving at a decision to approve the Agreements,
the Boards did not identify any single factor or group of factors as all-
important or controlling, but considered all factors together, and different
Board Members may have attributed different weights to the various factors
considered. The Independent Board Members were also assisted by the
advice of independent legal counsel in making this determination. The con-
tractual fee arrangements for each Trust reflect the results of several years
of review by the Board Members and predecessor Board Members, and
discussions between such Board Members (and predecessor Board
Members) and BlackRock. Certain aspects of the arrangements may be the
subject of more attention in some years than in others, and the Board
Members’ conclusions may be based in part on their consideration of these
arrangements in prior years.

ANNUAL REPORT

AUGUST 31, 2010

63



Automatic Dividend Reinvestment Plans

Pursuant to each Fund’s Dividend Reinvestment Plan (the “Plan”), common
shareholders are automatically enrolled to have all distributions of divi-
dends and capital gains reinvested by BNY Mellon Shareowner Services
for MHN and MHE and Computershare Trust Company, N.A. for BZM, BLJ,
BSE, BQH, BFY and BHV (individually, the “Plan Agent” or together, the “Plan
Agents”) in the respective Fund’s shares pursuant to the Plan. Shareholders
who do not 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, which serves as agent for the shareholders in administering
the Plan.

After the Funds declare a dividend or determine to make a capital gain dis-
tribution, the Plan Agent will acquire shares for the participants’ accounts,
depending upon the following circumstances, either (i) through receipt of
unissued but authorized shares from the Fund (“newly issued shares”) or
(ii) by purchase of outstanding shares on the open market, on the Fund’s
primary exchange or elsewhere (“open-market purchases”). If, on the divi-
dend payment date, the net asset value per share (“NAV”) is equal to or
less than the market price per share plus estimated brokerage commis-
sions (such condition often referred to as a “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 often referred to as a “market discount”), the Plan Agent will
invest the dividend amount in shares acquired on behalf of the participants
in open-market purchases. If the Plan Agents are unable to invest the full
dividend amount in open market purchases, or if the market discount shifts
to a market premium during the purchase period, the Plan Agents will
invest any un-invested portion in newly issued shares.

Participation in the Plan is completely voluntary and may be terminated or
resumed at any time without penalty by notice if received and processed
by the Plan Administrator prior to the dividend record date; otherwise such
termination or resumption will be effective with respect to any subsequently
declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and
distributions will be paid by each Fund. 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 Fund reserves the right to amend or terminate the Plan. There is
no direct service charge to participants in the Plan; however, each Fund
reserves the right to amend the Plan to include a service charge payable
by the participants. Participants that request a sale of shares through
Computershare Trust Company, N.A. are subject to a $2.50 sales fee and
a $0.15 per share sold brokerage commission. Participants that request
a sale of shares through BNY Mellon Shareowner Services are subject to
a $0.02 per share sold brokerage commission. All correspondence con-
cerning the Plan should be directed to the respective Plan Agent: BNY
Mellon Shareowner Services, P.0. Box 358035, Pittsburgh, PA 15252-
8035, Telephone: (866) 216-0242 for shareholders of MHN and MHE
or Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI
02940-3078, Telephone: (800) 699-1BFM or overnight correspondence
should be directed to the Plan Agent at 250 Royall Street, Canton, MA
02021 for shareholders of BZM, BLJ, BSE, BQH, BFY and BHV.

64 ANNUAL REPORT

AUGUST 31, 2010



Officers and Trustees       
        Number of   
    Length of    BlackRock-   
  Position(s)  Time    Advised Funds   
Name, Address  Held with  Served as    and Portfolios  Public 
and Year of Birth  Trusts  a Trustee2  Principal Occupation(s) During Past Five Years  Overseen  Directorships 
Non-Interested Trustees1         
Richard E. Cavanagh  Chairman  Since  Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life  100 Funds  Arch Chemical 
55 East 52nd Street  of the Board  2007  Insurance Company of America since 1998; Trustee, Educational Testing Service  98 Portfolios  (chemical and allied 
New York, NY 10055  and Trustee    from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor,    products) 
1946      The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer,     
      Harvard University since 2007; President and Chief Executive Officer, The Conference     
      Board, Inc. (global business research organization) from 1995 to 2007.     
Karen P. Robards  Vice Chair of  Since  Partner of Robards & Company, LLC (financial advisory firm) since 1987;  100 Funds  AtriCure, Inc. 
55 East 52nd Street  the Board,  2007  Co-founder and Director of the Cooke Center for Learning and Development,  98 Portfolios  (medical devices) 
New York, NY 10055  Chair of    (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc.     
1950  the Audit    (health care real estate investment trust) from 2007 to 2010; Director of     
  Committee    Enable Medical Corp. from 1996 to 2005; Investment Banker at Morgan Stanley     
  and Trustee    from 1976 to 1987.     
Frank J. Fabozzi  Trustee and  Since  Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in  100 Funds  None 
55 East 52nd Street  Member of  2007  the Practice of Finance and Becton Fellow, Yale University, School of Management,  98 Portfolios   
New York, NY 10055  the Audit    since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University from     
1948  Committee    1994 to 2006.     
Kathleen F. Feldstein  Trustee  Since  President of Economics Studies, Inc. (private economic consulting firm) since  100 Funds  The McClatchy 
55 East 52nd Street    2007  1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee  98 Portfolios  Company 
New York, NY 10055      Emeritus thereof since 2008; Member of the Board of Partners Community    (publishing); 
1941      Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners    BellSouth (tele- 
      HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member    communications); 
      of the Visiting Committee to the Harvard University Art Museum since 2003; Director,    Knight Ridder 
      Catholic Charities of Boston since 2009.    (publishing) 
James T. Flynn  Trustee and  Since  Chief Financial Officer of JP Morgan & Co., Inc. from 1990 to 1995.  100 Funds  None 
55 East 52nd Street  Member of  2007    98 Portfolios   
New York, NY 10055  the Audit         
1939  Committee         
Jerrold B. Harris  Trustee  Since  Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment)  100 Funds  BlackRock Kelso 
55 East 52nd Street    2007  since 2000; Director of Delta Waterfowl Foundation since 2001; President and  98 Portfolios  Capital Corp. 
New York, NY 10055      Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.    (business 
1942          development 
          company) 

 

ANNUAL REPORT

AUGUST 31, 2010

65



Officers and Trustees (continued)     
        Number of   
    Length of    BlackRock-   
  Position(s)  Time    Advised Funds   
Name, Address  Held with  Served as    and Portfolios  Public 
and Year of Birth  Trusts  a Trustee2  Principal Occupation(s) During Past Five Years  Overseen  Directorships 
Non-Interested Trustees1 (concluded)         
R. Glenn Hubbard  Trustee  Since  Dean, Columbia Business School since 2004; Columbia faculty member since  100 Funds  ADP (data and 
55 East 52nd Street    2007  1988; Co-Director of Columbia Business School’s Entrepreneurship Program from  98 Portfolios  information services); 
New York, NY 10055      1997 to 2004; Chairman, U.S. Council of Economic Advisers under the President    KKR Financial 
1958      of the United States from 2001 to 2003; Chairman, Economic Policy Committee    Corporation (finance); 
      of the OECD from 2001 to 2003.    Metropolitan Life 
          Insurance Company 
          (insurance) 
W. Carl Kester  Trustee and  Since  George Fisher Baker Jr. Professor of Business Administration, Harvard Business  100 Funds  None 
55 East 52nd Street  Member of  2007  School; Deputy Dean for Academic Affairs since 2006. Unit Head, Finance, Harvard  98 Portfolios   
New York, NY 10055  the Audit    Business School from 2005 to 2006; Senior Associate Dean and Chairman of the     
1951  Committee    MBA Program of Harvard Business School from 1999 to 2005; Member of the     
      faculty of Harvard Business School since 1981; Independent Consultant since 1978.     
  1 Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.     
  2 Date shown is the earliest date a person has served for the Trusts covered by this annual report. Following the combination of Merrill Lynch Investment 
  Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were 
  realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows each directors as joining the Funds’ board in 2007, 
  each director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: Richard E. Cavanagh, 1994; Frank J. 
  Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. 
  Robards, 1998.       
Interested Trustees3           
Richard S. Davis  Trustee  Since  Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State  170 Funds  None 
55 East 52nd Street    2007  Street Research & Management Company from 2000 to 2005; Chairman of  291 Portfolios   
New York, NY 10055      the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005.     
1945           
Henry Gabbay  Trustee  Since  Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock,  170 Funds  None 
55 East 52nd Street    2007  Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC  291 Portfolios   
New York, NY 10055      from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation     
1947      Target Shares from 2005 to 2007; Treasurer of certain closed-end funds in the     
      BlackRock fund complex from 1989 to 2006.     

 

3 Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Trusts based on his position with BlackRock, Inc. and
its affiliates. Mr. Gabbay is an “interested person” of the Trusts based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership
of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Trustees serve until their resignation, removal or death, or until December 31 of
the year in which they turn 72.

66 ANNUAL REPORT

AUGUST 31, 2010



Officers and Trustees (concluded)       
  Position(s)           
Name, Address  Held with  Length of         
and Year of Birth  Trusts  Time Served  Principal Occupation(s) During Past 5 Years     
Trust Officers1             
Anne Ackerley  President  Since  Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 
55 East 52nd Street  and Chief  20092  2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer 
New York, NY 10055  Executive    of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 
1962  Officer    to 2006.       
Brendan Kyne  Vice  Since  Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product 
55 East 52nd Street  President  2009  Development and Management for BlackRock’s U.S. Retail Group since 2009, Co-head thereof from 2007 to 
New York, NY 10055      2009; Vice President of BlackRock, Inc. from 2005 to 2008.   
1977             
Neal Andrews  Chief  Since  Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund 
55 East 52nd Street  Financial  2007  Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. 
New York, NY 10055  Officer           
1966             
Jay Fife  Treasurer  Since  Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch 
55 East 52nd Street    2007  Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director 
New York, NY 10055      of MLIM Fund Services Group from 2001 to 2006.     
1970             
Brian Kindelan  Chief  Since  Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of 
55 East 52nd Street  Compliance  2007  BlackRock, Inc. since 2005.     
New York, NY 10055  Officer           
1959             
Howard Surloff  Secretary  Since  Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) of 
55 East 52nd Street    2007  Goldman Sachs Asset Management, L.P. from 1993 to 2006.   
New York, NY 10055             
1965             
  1 Officers of the Trusts serve at the pleasure of the Boards.       
  2 Ms. Ackerley has been President and Chief Executive Officer since 2009 and was Vice President from 2007 to 2009.   
Investment Advisor  Custodians    Transfer Agents  Auction Agent  Accounting Agent  Legal Counsel 
BlackRock Advisors, LLC  State Street Bank  Common Shares  Preferred Shares  State Street Bank and  Skadden, Arps, Slate, 
WIlmington, DE 19809  and Trust Company5  Computershare  The Bank of  Trust Company  Meagher & Flom LLP 
  Boston, MA 02111  Trust Company, N.A.3  New York Mellon  Princeton, NJ 08540  New York, NY 10036 
Sub-Advisors      Providence, RI 02940  New York, NY 10286     
BlackRock Financial  The Bank of        Independent Registered  Address of the Trusts 
Management, Inc.3  New York Mellon6  BNY Mellon    Public Accounting Firm  100 Bellevue Parkway 
New York, NY 10055 New York, NY 10286  Shareowner Services4    Deloitte & Touche LLP Wilmington, DE 19809
    Jersey City, NJ 07310   Princeton, NJ 08540  
BlackRock Investment          
Management, LLC4          
Plainsboro, NJ 08536            
           

 

3 For all Trusts except MHN and MHE.
4 For MHN and MHE.
5 For all Trusts except MHN.
6 For MHN.

ANNUAL REPORT

AUGUST 31, 2010

67



Additional Information

Trust Certification

Those Trusts listed for trading on the New York Stock Exchange (“NYSE”)
have filed with the NYSE their annual chief executive officer certification
regarding compliance with the NYSE’s listing standards. The Trusts filed

with the Securities and Exchange Commission (“SEC”) the certification of
its chief executive officer and chief financial officer required by section 302
of the Sarbanes-Oxley Act.

General Information

On July 29, 2010, the Manager announced that a derivative complaint had
been filed by shareholders of BSE and BQH on July 27, 2010 in the
Supreme Court of the State of New York, New York County. The complaint
names the Manager, BlackRock, Inc. and certain of the directors, officers
and portfolio managers of BSE and BQH as defendants. The complaint
alleges, among other things, that the parties named in the complaint
breached fiduciary duties owed to BSE and BQH and their Common
Shareholders by redeeming auction-market preferred shares, auction rate
preferred securities, auction preferred shares and auction rate securities
(collectively, “AMPS”) at their liquidation preference. The complaint seeks
unspecified damages for losses purportedly suffered by BSE and BQH as
a result of the prior redemptions and injunctive relief preventing BSE and
BQH from redeeming AMPS at their liquidation preference in the future. The
Manager, BlackRock, Inc. and the other parties named in the complaint
believe that the claims asserted in the complaint are without merit and
intend to vigorously defend themselves in the litigation.

The Trusts do not make available copies of their Statements of Additional
Information because the Trusts’ shares are not continuously offered, which
means that the Statement of Additional Information of each Trust has not
been updated after completion of the respective Trust’s offerings and the
information contained in each Trust’s Statement of Additional Information
may have become outdated.

Other than the revisions discussed on the Board approvals on page 70,
there were no material changes in the Trusts’ investment objectives of
policies or to the Trusts’ charters or by-laws that would delay or prevent
a change of controls of the Trusts that were not approved by the sharehold-
ers 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’ portfolio.

Quarterly performance, semi-annual and annual reports and other informa-
tion regarding the Trusts may be found on BlackRock’s website, which can
be accessed at http://www.blackrock.com. This reference to BlackRock’s
website is intended to allow investors public access to information regard-
ing the Trusts and does not, and is not intended to, incorporate BlackRock’s
website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Trusts’ electronic
delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

Householding

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 other-
wise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please
call (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (“SEC”) for the first and third quar-
ters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on
the SEC’s website at http://www.sec.gov and may also be reviewed and
copied at the SEC’s Public Reference Room in Washington, DC. Information
on the operation of the Public Reference Room may be obtained by calling
(800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon
request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to
determine how to vote proxies relating to portfolio securities is available
(1) without charge, upon request, by calling (800) 441-7762;
(2) at http://www.blackrock.com; and (3) on the SEC’s website
at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities
held in the Trusts’ portfolios during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
http://www.blackrock.com or by calling (800) 441-7762 and
(2) on the SEC’s website at http://www.sec.gov.

68 ANNUAL REPORT

AUGUST 31, 2010



Additional Information (continued)

Board Approvals

On September 1, 2010, the Board of Directors/Trustees (the “Boards”) of
MHN and BSE (the “Insured Trusts”) approved changes to certain invest-
ment policies of the Insured Trusts.

Historically, under normal market conditions, each Insured Trust has been
required to invest at least 80% of its assets in municipal bonds either

(i) insured under an insurance policy purchased by the Insured Trust or
(ii) insured under an insurance policy obtained by the issuer of the muni-

cipal bond or any other party. In September 2008, the Insured Trusts
adopted an amended investment policy of purchasing only municipal
bonds insured by insurance providers with claims-paying abilities rated
investment grade at the time of investment (the “Insurance Policy”).

Following the onset of the credit and liquidity crises, the claims-paying
ability rating of most of the municipal bond insurance providers has been
lowered by the rating agencies. These downgrades have called into question
the long-term viability of the municipal bond insurance market, which has
the potential to severely limit the ability of BlackRock Advisors, LLC, the
Insured Trusts’ investment advisor (the “Manager”), to manage the Insured
Trusts under the Insurance Policy.

As a result, on September 1, 2010, the Manager recommended, and the
Boards approved, the removal of the Insurance Policy. As a result of this
investment policy change, the Insured Trusts will not be required to dispose
of assets currently held within the Insured Trusts. The Insured Trusts will
maintain, and have no current intention to amend, their investment
policy of, under normal market conditions, generally investing in municipal
obligations rated investment grade at the time of investment.

As each Insured Trust increases the amount of its assets that are invested
in municipal obligations that are not insured, each Insured Trust’s share-
holders will be exposed to the risk of the failure of such securities’ issuers
to pay interest and repay principal and will not have the benefit of protec-
tion provided under municipal bond insurance policies. As a result, share-
holders will be more dependent on the analytical ability of the Manager to

evaluate the credit quality of issuers of municipal obligations in which
each Insured Trust invests. The Boards believe that the amended invest-
ment policy is in the best interests of each Insured Trust and its sharehold-
ers because it believes that the potential benefits from increased flexibility
outweigh the potential increase in risk from the lack of insurance policies
provided by weakened insurance providers. Of course, the new investment
policy cannot assure that each Insured Trust will achieve its
investment objective.

As disclosed in each Insured Trust’s prospectus, each Insured Trust is
required to provide shareholders 60 days notice of a change to the
Insurance Policy. Accordingly, a notice describing the changes discussed
above was mailed to shareholders of record as of September 1, 2010.
The new investment policy is expected to take effect on November 9, 2010.
After the amended policy takes effect, the Manager anticipates that it will
gradually reposition each Insured Trust’s portfolios over time, and that dur-
ing such period, each Insured Trust may continue to hold a substantial por-
tion of its assets in insured municipal bonds. At this time, it is uncertain
how long it may take to reposition each Insured Trust’s portfolio once the
amended policy takes effect, and the Insured Trusts may continue to be
subject to risks associated with investing a substantial portion of their
assets in insured municipal bonds until the repositioning is complete. No
action is required by shareholders of the Insured Trusts in connection with
this change.

In connection with this change in non-fundamental policy, each of the
Insured Trusts will undergo a name change to reflect its new portfolio
characteristics. The new names of the Insured Trusts will be announced
at or prior to the expiration of the 60-day notice period. Each Insured
Trust will continue to trade on New York Stock Exchange under its current
ticker symbol.

The approved changes will not alter any Insured Trust’s investment
objective.

Section 19(a) Notices

These reported amounts and sources of distributions are estimates and are not being provided for tax reporting purposes. The actual amounts and sources
for tax reporting purposes wll depend upon each Trust’s investment experience during the year and may be subject to changes based on the tax regula-
tions. Each Trust will provide a Form 1099-DIV each calendar year that will explain the character of these dividends and distributions for federal income
tax purposes.

August 31, 2010                 
    Total Cumulative Distributions    % Breakdown of the Total Cumulative 
    for the Fiscal Year-to-Date    Distributions for the Fiscal Year-to-Date 
  Net  Net Realized    Total Per  Net  Net Realized    Total Per 
  Investment  Capital  Return of  Common  Investment  Capital  Return of  Common 
  Income  Gains  Capital  Share  Income  Gains  Capital  Share 
BQH  $0.951689  $0.093155    $1.044844  91%  9%    100% 
BHV  $0.965188  $0.266045    $1.231233  78%  22%    100% 

 

ANNUAL REPORT

AUGUST 31, 2010

69



Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a consumer
reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.

We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access
to non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are designed
to protect the non-public personal information of its Clients, including pro-
cedures relating to the proper storage and disposal of such information.

70 ANNUAL REPORT

AUGUST 31, 2010




This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be

considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common

Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares and the risk that

fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed

auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.




Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant’s principal executive officer,
principal financial officer and principal accounting officer, or persons performing similar
functions. During the period covered by this report, there have been no amendments to or
waivers granted under the code of ethics. A copy of the code of ethics is available without
charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as
applicable (the “board of directors”), has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Kent Dixon (retired effective December 31, 2009)
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards
qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

Prof. Kester has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Prof. Kester has been involved in providing valuation and other financial
consulting services to corporate clients since 1978. Prof. Kester’s financial consulting
services present a breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably be expected to be
raised by the registrant’s financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Ms. Robards has been President of Robards & Company, a financial advisory
firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years
where she was responsible for evaluating and assessing the performance of companies based
on their financial results. Ms. Robards has over 30 years of experience analyzing financial
statements. She also is a member of the audit committee of one publicly held company and
a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial
expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities imposed on such person as a
member of the audit committee and board of directors in the absence of such designation or
identification. The designation or identification as an audit committee financial expert does
not affect the duties, obligations, or liability of any other member of the audit committee or
board of directors.



Item 4 – Principal Accountant Fees and Services           
  (a) Audit Fees  (b) Audit-Related Fees1  (c) Tax Fees2  (d) All Other Fees3 
  Current  Previous  Current  Previous  Current  Previous  Current  Previous 
  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year 
Entity Name  End  End  End  End  End  End  End  End 
BlackRock                 
MuniHoldings New                 
York Insured Fund,  $33,600  $33,600  $3,500  $3,500  $6,100  $6,100  $0  $1,028 
Inc.                 

 

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of
financial statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and
procedures with regard to the pre-approval of services. Audit, audit-related and tax
compliance services provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the registrant’s affiliated
service providers that relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee believes are a) consistent
with the SEC’s auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”).
The term of any general pre-approval is 12 months from the date of the pre-approval, unless
the Committee provides for a different period. Tax or other non-audit services provided to
the registrant which have a direct impact on the operation or financial reporting of the
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose,
multiple projects will be aggregated to determine if they exceed the previously mentioned
cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to the Committee Chairman the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

  Current Fiscal Year  Previous Fiscal Year 
Entity Name  End  End 

 



BlackRock MuniHoldings New  $20,377  $413,128 
York Insured Fund, Inc.     

 

(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.

Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%

Item 5 – Audit Committee of Listed Registrants –

(a) The following individuals are members of the registrant’s separately-designated
standing audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Kent Dixon (retired effective December 31, 2009)
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards

(b) Not Applicable

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – The board of directors has delegated the voting of proxies for the
Fund securities to the Fund’s investment adviser (“Investment Adviser”) pursuant to the
Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment
Adviser will vote proxies related to Fund securities in the best interests of the Fund and its
stockholders. From time to time, a vote may present a conflict between the interests of the
Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated
person of the Fund or the Investment Adviser, on the other. In such event, provided that the
Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee
thereof (the “Oversight Committee”) is aware of the real or potential conflict or material
non-routine matter and if the Oversight Committee does not reasonably believe it is able to
follow its general voting guidelines (or if the particular proxy matter is not addressed in the
guidelines) and vote impartially, the Oversight Committee may retain an independent
fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the
Investment Adviser’s clients. If the Investment Adviser determines not to retain an
independent fiduciary, or does not desire to follow the advice of such independent fiduciary,
the Oversight Committee shall determine how to vote the proxy after consulting with the
Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal



and Compliance Department and concluding that the vote cast is in its client’s best interest
notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are
attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is available
without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at
http://www.sec.gov.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of August 31,
2010.

(a)(1) The registrant (or “Fund”) is managed by a team of investment professionals
comprised of Timothy Browse, Director at BlackRock, Inc., Theodore R. Jaeckel, Jr.,
CFA, Managing Director at BlackRock, Inc. and Walter O’Connor, Managing
Director at BlackRock, Inc. Each is a member of BlackRock, Inc.’s municipal tax-
exempt management group. Each is jointly responsible for the day-to-day
management of the registrant’s portfolio, which includes setting the registrant’s
overall investment strategy, overseeing the management of the registrant and/or
selection of its investments. Messrs. Browse, Jaeckel and O’Connor have been
members of the registrant’s portfolio management team since 2004, 2006 and 2006,
respectively.

Portfolio Manager  Biography         
Timothy Browse  Director of BlackRock, Inc. since 2008; Vice President of BlackRock, Inc. 
    from 2006 to 2007; Vice President of Merrill Lynch Investment Managers, 
    L.P. (“MLIM”) from 2004 to 2006.       
Theodore R. Jaeckel, Jr.  Managing Director at BlackRock, Inc. since 2006; Managing Director of 
    MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.   
Walter O’Connor  Managing Director of BlackRock, Inc. since 2006; Managing Director of 
    MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.   
(a)(2) As of August 31, 2010:         
  (ii) Number of Other Accounts Managed  (iii) Number of Other Accounts and 
  and Assets by Account Type    Assets for Which Advisory Fee is 
          Performance-Based   
  Other  Other Pooled    Other  Other Pooled   
(i) Name of  Registered  Investment  Other  Registered  Investment  Other 
Portfolio Manager  Investment  Vehicles  Accounts  Investment  Vehicles  Accounts 
  Companies      Companies     
Timothy Browse  13  0  0  0  0  0 
  $2.88 Billion  $0  $0  $0  $0  $0 
Theodore R. Jaeckel,  73  0  0  0  0  0 
  $21.48 Billion  $0  $0  $0  $0  $0 
Walter O’Connor  72  0  0  0  0  0 
  $20.51 Billion  $0  $0  $0  $0  $0 
(iv) Potential Material Conflicts of Interest         

 

BlackRock, Inc., individually and together with its affiliates (“BlackRock”), has built a
professional working environment, firm-wide compliance culture and compliance
procedures and systems designed to protect against potential incentives that may favor one
account over another. BlackRock has adopted policies and procedures that address the



allocation of investment opportunities, execution of portfolio transactions, personal trading
by employees and other potential conflicts of interest that are designed to ensure that all
client accounts are treated equitably over time. Nevertheless, BlackRock furnishes
investment management and advisory services to numerous clients in addition to the Fund,
and BlackRock may, consistent with applicable law, make investment recommendations to
other clients or accounts (including accounts which are hedge funds or have performance or
higher fees paid to BlackRock, or in which portfolio managers have a personal interest in
the receipt of such fees), which may be the same as or different from those made to the
Fund. In addition, BlackRock, its affiliates and significant shareholders and any officer,
director, stockholder or employee may or may not have an interest in the securities whose
purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates
or significant shareholders, or any officer, director, stockholder, employee or any member
of their families may take different actions than those recommended to the Fund by
BlackRock with respect to the same securities. Moreover, BlackRock may refrain from
rendering any advice or services concerning securities of companies of which any of
BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees
are directors or officers, or companies as to which BlackRock or any of its affiliates or
significant shareholders or the officers, directors and employees of any of them has any
substantial economic interest or possesses material non-public information. Each portfolio
manager also may manage accounts whose investment strategies may at times be opposed to
the strategy utilized for a fund. In this connection, it should be noted that a portfolio
manager may currently manage certain accounts that are subject to performance fees. In
addition, a portfolio manager may assist in managing certain hedge funds and may be
entitled to receive a portion of any incentive fees earned on such funds and a portion of such
incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers
may in the future manage other such accounts or funds and may be entitled to receive
incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client
fairly. When BlackRock purchases or sells securities for more than one account, the trades
must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to
allocate investments in a fair and equitable manner among client accounts, with no account
receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve reasonable efficiency in client
transactions and provide BlackRock with sufficient flexibility to allocate investments in a
manner that is consistent with the particular investment discipline and client base.

(a)(3) As of August 31, 2010:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive
compensation and its career path emphasis at all levels reflect the value senior management
places on key resources. Compensation may include a variety of components and may vary
from year to year based on a number of factors. The principal components of compensation
include a base salary, a performance-based discretionary bonus, participation in various
benefits programs and one or more of the incentive compensation programs established by
BlackRock such as its Long-Term Retention and Incentive Plan.



Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio managers who perform
additional management functions within the portfolio management group or within
BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several components: the performance
of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock,
the investment performance, including risk-adjusted returns, of the firm’s assets under
management or supervision by that portfolio manager relative to predetermined
benchmarks, and the individual’s seniority, role within the portfolio management team,
teamwork and contribution to the overall performance of these portfolios and BlackRock.
In most cases, including for the portfolio managers of the Fund, these benchmarks are the
same as the benchmark or benchmarks against which the performance of the Fund or other
accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to the portfolio managers, such benchmarks for the
Fund include a combination of market-based indices (e.g., Barclays Capital Municipal Bond
Index), certain customized indices and certain fund industry peer groups.

BlackRock’s Chief Investment Officers make a subjective determination with respect to the
portfolio managers’ compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above.
Performance is measured on both a pre-tax and after-tax basis over various time periods
including 1, 3, 5 and 10-year periods, as applicable.

Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination
of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of
years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base
salary, represents more than 60% of total compensation for the portfolio managers. Paying
a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a
given year “at risk” based on BlackRock’s ability to sustain and improve its performance
over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — From time to time long-
term incentive equity awards are granted to certain key employees to aid in retention, align
their interests with long-term shareholder interests and motivate performance. Equity
awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once
vested, settle in BlackRock, Inc. common stock. Messrs. O’Connor and Jaeckel have each
received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to
eligible BlackRock employees may be voluntarily deferred into an account that tracks the
performance of certain of the firm’s investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the various
investment options. Messrs. O’Connor, Jaeckel and Browse have each participated in the
deferred compensation program.



Other compensation benefits. In addition to base compensation and discretionary
incentive compensation, portfolio managers may be eligible to receive or participate in one
or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans
in which BlackRock employees are eligible to participate, including a 401(k) plan, the
BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase
Plan (ESPP). The employer contribution components of the RSP include a company match
equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per
year, and a company retirement contribution equal to 3-5% of eligible compensation. The
RSP offers a range of investment options, including registered investment companies
managed by the firm. BlackRock contributions follow the investment direction set by
participants for their own contributions or, absent employee investment direction, are
invested into a balanced portfolio. The ESPP allows for investment in BlackRock common
stock at a 5% discount on the fair market value of the stock on the purchase date. Annual
participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of
$25,000. Each portfolio manager is eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities – As of August 31, 2010.

Portfolio Manager  Dollar Range of Equity Securities 
  of the Fund Beneficially Owned 
Walter O’Connor  None 
Theodore R. Jaeckel, Jr.  None 
Timothy Browse  None 

 

(b) Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable due to no such purchases during the period covered
by this report.

Item 10 – Submission of Matters to a Vote of Security Holders – On September 17, 2010, the Board
of Directors of the Fund amended and restated in its entirety the bylaws of the Fund (the
“Amended and Restated Bylaws”). The Amended and Restated Bylaws were deemed
effective as of September 17, 2010 and set forth, among other things, the processes and
procedures that shareholders of the Fund must follow, and specifies additional information
that shareholders of the Fund must provide, when proposing director nominations at any
annual meeting or special meeting in lieu of an annual meeting or other business to be
considered at an annual meeting or special meeting.

Item 11 – Controls and Procedures

11(a) – The registrant’s principal executive and principal financial officers or persons performing
similar functions have concluded that the registrant’s disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
“1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the
evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

11(b) – There were no changes in the registrant’s internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter



of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – See Item 2

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

BlackRock MuniHoldings New York Insured Fund, Inc.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock MuniHoldings New York Insured Fund, Inc.

Date: November 5, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings New York Insured Fund, Inc.

Date: November 5, 2010

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings New York Insured Fund, Inc.

Date: November 5, 2010