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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 811-21053

Name of Fund: BlackRock Virginia Municipal Bond Trust (BHV)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Virginia Municipal Bond Trust, 40 East 52nd Street, New York, NY 10022.

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

Date of fiscal year end: 08/31/2009

Date of reporting period: 08/31/2009

Item 1 – Report to Stockholders



EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report

AUGUST 31, 2009

BlackRock California Insured Municipal Income Trust (BCK)

BlackRock California Municipal Bond Trust (BZA)

BlackRock California Municipal Income Trust II (BCL)

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)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE


Table of Contents   
  Page 
Dear Shareholder  3 
Annual Report:   
Trust Summaries  4 
The Benefits and Risks of Leveraging  15 
Derivative Financial Instruments  16 
Financial Statements:   
       Schedules of Investments  17 
       Statements of Assets and Liabilities  44 
       Statements of Operations  46 
       Statements of Changes in Net Assets  48 
Financial Highlights  52 
Notes to Financial Statements  63 
Report of Independent Registered Public Accounting Firm  71 
Important Tax Information  72 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  73 
Automatic Dividend Reinvestment Plans  77 
Officers and Trustees  79 
Additional Information  83 

2 ANNUAL REPORT

AUGUST 31, 2009


Dear Shareholder

The past 12 months reveal two distinct economic and market backdrops — one of extreme investor pessimism and decided weakness, and another of

increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the

surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers,

uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial sys-

tem and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected

economic data and upside surprises in corporate earnings.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted

in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebal-

ancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging mar-

kets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.

In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns

about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and dis-

tressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery

in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The

municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slow-

down in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In par-

ticular, August marked the municipal market’s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was

lost during 2008.

Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated

market, while less-risky fixed income investments posted stable, modest returns.

Total Returns as of August 31, 2009  6-month  12-month 
US equities (S&P 500 Index)  40.52%  (18.25)% 
Small cap US equities (Russell 2000 Index)  48.25  (21.29) 
International equities (MSCI Europe, Australasia, Far East Index)  53.47  (14.95) 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)  (1.61)  6.77 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  5.95  7.94 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  5.61  5.67 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  36.31  7.00 

* Formerly a Merrill Lynch Index.

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

The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur-

bulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We invite you to visit www.blackrock.com/funds for our

most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to

continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Announcement to Shareholders

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had

accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of

BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of

BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is

scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

THIS PAGE NOT PART OF YOUR FUND REPORT

3


Trust Summary as of August 31, 2009

BlackRock California Insured Municipal Income Trust

Investment Objective

BlackRock California Insured Municipal Income Trust (BCK) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes
and California income taxes. The Trust will invest at least 80% of its managed assets in municipal obligations that are insured as to the timely payment of
both principal and interest.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 6.34% based on market price and 4.76% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.16% on a market price basis and 2.91%
on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference
between performance based on price and performance based on NAV. The range of states included in the insured Lipper category makes return compar-
isons inherently difficult. The Trust benefited from the outperformance of California credits, which occurred despite the negative fundamental backdrop
involving the state’s budget finances. An underweight in lower-rated credits was also additive, as monoline insurance value continued to deteriorate, with
more emphasis placed on underlying ratings. In addition, the lack of exposure to alternative minimum tax paper was beneficial as spreads on these secu-
rities remained wide. A competitive level of income accrual from a relatively high average coupon structure, together with extremely beneficial short-term
borrowing costs, permitted a dividend increase in June 2009. Exposure to zero-coupon securities detracted, as spreads remained wide compared to
couponed 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”)          BCK 
  Initial Offering Date        October 31, 2002 
  Yield on Closing Market Price as of August 31, 2009 ($12.94)1          6.12% 
  Tax Equivalent Yield2          9.42% 
  Current Monthly Distribution per Common Share3          $0.066 
  Current Annualized Distribution per Common Share3          $0.792 
  Leverage as of August 31, 20094          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 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 15.
  The table below summarizes the changes in the Trust’s market price and NAV per share:       
    8/31/09  8/31/08  Change  High  Low 
  Market Price  $12.94  $12.95  (0.08)%  $13.32  $ 7.15 
  Net Asset Value  $13.86  $14.08  (1.56)%  $14.26  $10.43 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
County/City/Special District/      AAA/Aaa       26%     31% 
   School District  51%  40%  AA/Aa       52     58 
Utilities  33  35  A       22     11 
Education  10  6   5 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors 
Transportation  4  6       Service (“Moody’s”) ratings.     
State  2  5       
Health    8       

4 ANNUAL REPORT

AUGUST 31, 2009


Trust Summary as of August 31, 2009

BlackRock California Municipal Bond Trust

Investment Objective

BlackRock California Municipal Bond Trust (BZA) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and California
income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade quality,
or determined by its investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal
bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch Ratings (“Fitch”) or that are unrated but judged to be of comparable
quality by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 0.07% based on market price and 4.57% based on NAV. For the same period, the closed-
end Lipper California Municipal Debt Funds category posted an average return of 1.02% on a market price basis and (2.15)% on a NAV basis. All returns
reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on
price and performance based on NAV. Overall performance benefited from spread tightening in certain sectors specifically held in the fund, such as corpo-
rate-backed securities, some land-based community facilities districts and paper subject to the alternative minimum tax. A healthy accrual and beneficial
short-term borrowing costs permitted a dividend increase in June 2009. Exposure to zero-coupon securities detracted, as spreads remained wide compared
to couponed bonds. The Trust ended the period with cash and short-term investments of 7% of net assets, which was not a factor in performance. Cash
reserves in closed-end products are typically kept at low percentages to maximize leverage benefits. These reserves were invested in higher-yielding cash
equivalent alternatives when available.

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  BZA 
  Initial Offering Date  April 30, 2002 
  Yield on Closing Market Price as of August 31, 2009 ($13.55)1  6.82% 
  Tax Equivalent Yield2  10.49% 
  Current Monthly Distribution per Common Share3  $0.077 
  Current Annualized Distribution per Common Share3  $0.924 
  Leverage as of August 31, 20094  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 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 attributa-
ble 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $13.55  $14.48  (6.42)%  $14.57  $ 7.66 
Net Asset Value  $14.52  $14.85  (2.22)%  $15.05  $11.24 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
County/City/Special District/      AAA/Aaa  24%     29% 
   School District  37%  31%  AA/Aa  33  18 
Education  18  10  A  37  35 
Health  14  23  BBB/Baa  5  11 
Housing  10  14  B  1  1 
State  7    Not Rated    6 
Utilities  7  3       
       5 Using the higher of S&P’s or Moody’s ratings.   
Transportation  6  6       
Corporate  1  5       
Tobacco    8       

ANNUAL REPORT

AUGUST 31, 2009

5


Trust Summary as of August 31, 2009

BlackRock California Municipal Income Trust II

Investment Objective

BlackRock California Municipal Income Trust II (BCL) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and
California income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment
grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total
assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of compa-
rable quality by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 7.39% based on market price and 4.84% based on NAV. For the same period, the closed-
end Lipper California Municipal Debt Funds category posted an average return of 1.02% on a market price basis and (2.15)% on a NAV basis. All returns
reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on
price and performance based on NAV. Overall performance benefited from spread tightening in certain sectors specifically held in the fund, such as corpo-
rate-backed securities, some land-based community facilities districts and securities subject to the alternative minimum tax. A healthy accrual and bene-
ficial short-term borrowing costs permitted a dividend increase in June 2009. Exposure to zero-coupon securities detracted, as spreads remained wide
compared to couponed bonds. The Trust ended the period with cash and short-term investments of 6% of net assets, which was not a factor in performance.
Cash reserves in closed-end products are typically kept at low percentages to maximize leverage benefits. These reserves were invested in higher-yielding
cash equivalent alternatives when available.

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          BCL 
  Initial Offering Date          July 30, 2002 
  Yield on Closing Market Price as of August 31, 2009 ($12.75)1          7.01% 
  Tax Equivalent Yield2          10.78% 
  Current Monthly Distribution per Common Share3          $0.0745 
  Current Annualized Distribution per Common Share3          $0.8940 
  Leverage as of August 31, 20094          39% 
     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 15.           
  The table below summarizes the changes in the Trust’s market price and NAV per share:       
    8/31/09  8/31/08  Change  High  Low 
  Market Price  $12.75  $12.70  0.39%  $13.00  $ 6.85 
  Net Asset Value  $13.75  $14.03  (2.00)%  $14.20  $10.50 

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

     Sector Allocations     
  8/31/09  8/31/08 
County/City/Special District/     
   School District  42%  34% 
Utilities  15  12 
Health  14  13 
Education  9  4 
Transportation  9  10 
State  7  4 
Corporate  2  4 
Housing  2  9 
Tobacco    10 

     Credit Quality Allocations5     
  8/31/09  8/31/08 
AAA/Aaa  9%  27% 
AA/Aa  43  35 
A  43  25 
BBB/Baa  1  6 
B  1  1 
Not Rated6  3  6 

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
and 2008, the market value of these securities was $5,666,520
representing 3% and $1,173,229 representing 1%, respectively,
of the Trust’s long-term investments.

6 ANNUAL REPORT

AUGUST 31, 2009


Trust Summary as of August 31, 2009

BlackRock Maryland Municipal Bond Trust

Investment Objective

BlackRock Maryland Municipal Bond Trust (BZM) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Maryland
personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment
grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total
assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of compara-
ble quality by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 3.53% based on market price and 1.52% based on NAV. For the same period, the closed-
end Lipper Other States Municipal Debt Funds category posted an average return of 8.34% on a market price basis and 4.53% on a NAV basis. 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 Trust’s heavy concentrations in lower-rated and longer-dated securities enhanced performance in recent months
as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield, as we
focused on maximizing coupon structure and minimizing cash levels. On the other hand, the Trust suffered from poor positioning during the fourth quarter
of 2008. Specifically, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge
of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited
greater sensitivity to both factors than many of its Lipper peers.

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, 2009 ($15.35)1  5.31% 
  Tax Equivalent Yield2  8.17% 
  Current Monthly Distribution per Common Share3  $0.0679 
  Current Annualized Distribution per Common Share3  $0.8148 
  Leverage as of August 31, 20094  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 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 attribu-
table 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $15.35  $15.75  (2.54)%  $16.65  $ 8.70 
Net Asset Value  $13.81  $14.45  (4.43)%  $14.63  $10.51 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
County/City/Special District/      AAA/Aaa       29%     31% 
   School District       25%  28%  AA/Aa  17     21 
Transportation  19  21  A  39     27 
Health  19  19  BBB/Baa  6     10 
Utilities  13  12  Not Rated  9     11 
Education  11  11       
       5 Using the higher of S&P’s or Moody’s ratings.   
Housing  6  5       
State  3  1       
Tobacco  3  3       
Corporate  1         

ANNUAL REPORT

AUGUST 31, 2009

7


Trust Summary as of August 31, 2009

BlackRock MuniHoldings New York Insured Fund, Inc.

Investment Objective

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN) (the “Trust”) seeks to provide shareholders with current income exempt from federal income
taxes and New York State and New York City personal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations,
the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes and New York State and New York City personal
income taxes.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 13.34% based on market price and 5.19% based on NAV. For the same period, the closed-
end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.16% on a market price basis and 2.91% on a NAV basis. All
returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance
based on price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent
months as the yield curve flattened and credit spreads tightened. On the other hand, the Trust suffered from poor positioning during the fourth quarter of
2008, including underweights in tax-backed and utility bonds, which were among the better performers. At the same time, prices of long-maturity bonds fell
disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors
sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its
Lipper peers. Performance was also negatively affected by a slightly below-average dividend yield.

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  MHN 
  Initial Offering Date  September 19, 1997 
  Yield on Closing Market Price as of August 31, 2009 ($12.89)1  6.10% 
  Tax Equivalent Yield2  9.38% 
  Current Monthly Distribution per Common Share3  $0.0655 
  Current Annualized Distribution per Common Share3  $0.7860 
  Leverage as of August 31, 20094  42% 

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 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Common Share was increased to $0.0685. 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 further change in the future.
4 Represents Preferred Shares as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to
Preferred Shares, 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $12.89  $12.12  6.35%  $12.90  $ 6.50 
Net Asset Value  $13.74  $13.92  (1.29)%  $14.12  $10.28 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
County/City/Special District/      AAA/Aaa       43%  41% 
   School District  27%  29%  AA/Aa  18  49 
Transportation  27  28  A  28  5 
State  11  10  BBB/Baa  8  5 
Utilities  10  12  Not Rated  36   
Education  7  5   5 Using the higher of S&P’s or Moody’s ratings.   
Corporate  7  7   6 The investment advisor has deemed certain of these non-rated 
Health  5  3       securities to be of investment grade quality. As of August 31, 2009, 
Tobacco  3  3       the market value of these securities was $18,918,142 representing 
Housing  3  3       3% of the Trust’s long-term investments.     

8 ANNUAL REPORT

AUGUST 31, 2009


Trust Summary as of August 31, 2009

BlackRock New Jersey Municipal Bond Trust

Investment Objective

BlackRock New Jersey Municipal Bond Trust (BLJ) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New Jersey
gross income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade
quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets
in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable qual-
ity by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned (1.23)% based on market price and 2.50% based on NAV. For the same period, the closed-
end Lipper New Jersey Municipal Debt Funds category posted an average return of 7.49% on a market price basis and 3.66% on a NAV basis. 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 Trust’s overweights in longer-dated housing and tax-backed bonds contributed positively to performance
during the period. Conversely, overweight exposure to spread products, such as education, healthcare and corporate-backed bonds, detracted from results
as these issues underperformed the broader municipal market early in the reporting 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  BLJ 
  Initial Offering Date  April 30, 2002 
  Yield on Closing Market Price as of August 31, 2009 ($13.59)1  6.67% 
  Tax Equivalent Yield2  10.26% 
  Current Monthly Distribution per Common Share3  $0.0755 
  Current Annualized Distribution per Common Share3  $0.9060 
  Leverage as of August 31, 20094  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 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 attribu-
table 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $13.59  $14.76  (7.93)%  $16.00  $ 8.20 
Net Asset Value  $13.53  $14.16  (4.45)%  $14.42  $10.32 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
Health  23%  35%  AAA/Aaa       40%     29% 
State  23  15  AA/Aa  18  10 
Transportation  16  17  A  16  31 
Housing  11  5  BBB/Baa  14  14 
County/City/Special District/      B  4  4 
   School District  9  6  Not Rated  8  12 
Education  7  10   5 Using the higher of S&P’s or Moody’s ratings.   
Corporate  6  6       
Utilities  4  4       
Tobacco  1  2       

ANNUAL REPORT

AUGUST 31, 2009

9


Trust Summary as of August 31, 2009

BlackRock New York Insured Municipal Income Trust

Investment Objective

BlackRock New York Insured Municipal Income Trust (BSE) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes
and New York State and New York City personal income taxes. The Trust will invest at least 80% of its managed assets in municipal obligations that are
insured as to the timely payment of both principal and interest.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 5.70% based on market price and 3.98% based on NAV. For the same period, the closed-
end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.16% on a market price basis and 2.91% on a NAV basis. All
returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance
based on price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent
months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield.
The Trust suffered from poor positioning during the fourth quarter of 2008, including underweights in tax-backed and utility bonds, which were among the
better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a
common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The
Trust exhibited greater sensitivity to both factors than many of its Lipper peers.

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, 2009 ($13.15)1          5.98% 
  Tax Equivalent Yield2          9.20% 
  Current Monthly Distribution per Common Share3          $0.0655 
  Current Annualized Distribution per Common Share3          $0.7860 
  Leverage as of August 31, 20094          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 distribution is not constant and is subject to change.           
     4 Represents Preferred Shares as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to 
         Preferred Shares, 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 15.           
  The table below summarizes the changes in the Trust’s market price and NAV per share:       
    8/31/09  8/31/08  Change  High  Low 
  Market Price  $13.15  $13.26  (0.83)%  $13.79  $6.90 
  Net Asset Value  $13.61  $13.95  (2.44)%  $14.19  $9.44 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
Transportation       26%  27%  AAA/Aaa       30%  36% 
Education  22  21  AA/Aa       21  47 
County/City/Special District/      A       29  7 
   School District  19  19  BBB/Baa  9  8 
Health  14  14  Not Rated       116  2 
State  10  9   5 Using the higher of S&P’s or Moody’s ratings.   
Utilities  8  7   6 The investment advisor had deemed certain of these non-rated 
Corporate  1         securities to be of investment grade quality. As of August 31, 2009, 
Tobacco    2       the market value of these securities was $13,920,865 representing 
Housing    1       10% of the Trust’s long-term investments.     

10 ANNUAL REPORT

AUGUST 31, 2009


Trust Summary as of August 31, 2009

BlackRock New York Municipal Bond Trust

Investment Objective

BlackRock New York Municipal Bond Trust (BQH) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New York State
and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that
are investment grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to
20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged
to be of comparable quality by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 4.87% based on market price and 5.97% based on NAV. For the same period, the closed-
end Lipper New York Municipal Debt Funds category posted an average return of 4.36% on a market price basis and (0.50)% on a NAV basis. All returns
reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on
price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent months
as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield. On the
other hand, the Trust suffered from poor positioning during the fourth quarter of 2008, including underweights in tax-backed and water & sewer bonds,
which were among the better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addi-
tion, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating
credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its Lipper peers.

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, 2009 ($14.32)1  6.54% 
  Tax Equivalent Yield2  10.06% 
  Current Monthly Distribution per Common Share3  $0.078 
  Current Annualized Distribution per Common Share3  $0.936 
  Leverage as of August 31, 20094  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 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 attribu-
table 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $14.32  $14.62  (2.05)%  $14.80  $ 8.01 
Net Asset Value  $14.56  $14.71  (1.02)%  $14.92  $11.52 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
State       22%  21%  AAA/Aaa       28%  38% 
County/City/Special District/      AA/Aa  28  25 
   School District  14  11  A  17  12 
Housing  13  17  BBB/Baa  18  17 
Education  13  12  BB/Ba  1   
Transportation  12  13  B  7  7 
Utilities  9  9  Not Rated  1  1 
Corporate  8  7   5 Using the higher of S&P’s or Moody’s ratings.   
Tobacco  6  9       
Health  3  1       

ANNUAL REPORT

AUGUST 31, 2009

11


Trust Summary as of August 31, 2009

BlackRock New York Municipal Income Trust II

Investment Objective

BlackRock New York Municipal Income Trust II (BFY) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and New
York State and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal
bonds that are investment grade quality, or determined by its investment advisor to be of equivalent credit quality at the time of purchase. The Trust may invest
up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged
to be of comparable quality by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 10.26% based on market price and 5.23% based on NAV. For the same period, the closed-
end Lipper New York Municipal Debt Funds category posted an average return of 4.36% on a market price basis and (0.50)% on a NAV basis. All returns
reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on
price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent months
as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield. On the
other hand, the Trust suffered from poor positioning during the fourth quarter of 2008, including an underweight in tax-backed bonds, which were among the
better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a
common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The
Trust exhibited greater sensitivity to both factors than many of its Lipper peers.

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, 2009 ($14.00)1  6.64% 
  Tax Equivalent Yield2  10.22% 
  Current Monthly Distribution per Common Share3  $0.0775 
  Current Annualized Distribution per Common Share3  $0.9300 
  Leverage as of August 31, 20094  39% 

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 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Common Share was increased to $0.0800. 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 further change in the future.
4 Represents Preferred Shares as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to
Preferred Shares, 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $14.00  $13.60  2.94%  $14.05  $ 7.53 
Net Asset Value  $14.03  $14.28  (1.75)%  $14.48  $10.81 

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

     Sector Allocations     
  8/31/09  8/31/08 
County/City/Special District/     
   School District       22%  20% 
Education  16  15 
Corporate  14  15 
Transportation  11  13 
Health  10  8 
Utilities  9  8 
Tobacco  8  11 
Housing  6  6 
State  4  4 

     Credit Quality Allocations5     
  8/31/09  8/31/08 
AAA/Aaa       26%  30% 
AA/Aa  27  40 
A  23  14 
BBB/Baa  10  7 
BB/Ba  1  2 
B  6  6 
Not Rated  76  1 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor had 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.

12 ANNUAL REPORT

AUGUST 31, 2009


Trust Summary as of August 31, 2009

BlackRock Virginia Municipal Bond Trust

Investment Objective

BlackRock Virginia Municipal Bond Trust (BHV) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Virginia per-
sonal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade
quality, or determined by its investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in
municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality
by BlackRock.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned (4.16)% based on market price and 6.94% based on NAV. For the same period, the
closed-end Lipper Other States Municipal Debt Funds category posted an average return of 8.34% on a market price basis and 4.53% on a NAV basis.
All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between perform-
ance based on price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities enhanced performance
in recent months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average divi-
dend yield, as we focused on maximizing coupon structure and minimizing cash levels. On the other hand, the Trust suffered from poor positioning during
the fourth quarter of 2008. Specifically, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads,
a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals.
The Trust exhibited greater sensitivity to both factors than many of its Lipper peers.

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, 2009 ($17.50)1  5.49% 
  Tax Equivalent Yield2  8.45% 
  Current Monthly Distribution per Common Share3  $0.08 
  Current Annualized Distribution per Common Share3  $0.96 
  Leverage as of August 31, 20094  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 attribu-
table 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $17.50  $19.50  (10.26)%  $22.75  $12.50 
Net Asset Value  $15.05  $15.03  0.13%  $15.25  $11.62 

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

     Sector Allocations           Credit Quality Allocations5     
  8/31/09  8/31/08    8/31/09  8/31/08 
County/City/Special District/      AAA/Aaa  22%     34% 
   School District       17%     14%  AA/Aa  37     27 
Housing  16  13  A  19     17 
Health  15  26  BBB/Baa  7  7 
Transportation  13  13  Not Rated  15     156 
Utilities  11  17   5 Using the higher of S&P’s or Moody’s ratings.   
Education  11  10       
       6 The investment advisor has deemed certain of these non-rated 
Corporate  9  4       securities to be of investment grade quality. As of August 31, 2008, 
State  5         the market value of these securities was $2,170,858 representing 
Tobacco  3  3       6% of the Trust’s long-term investments.     

ANNUAL REPORT

AUGUST 31, 2009

13


Trust Summary as of August 31, 2009

The Massachusetts Health & Education Tax-Exempt Trust

Investment Objective

The Massachusetts Health & Education Tax-Exempt Trust (MHE) (the “Trust”) seeks 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 Massachusetts tax-exempt obligations issued on behalf of participating not-for-profit institutions. The
Trust will continue to invest primarily in investment-grade obligations. The Trust is intended to be a long-term investment and not a short-term trading vehicle.

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

Performance

For the 12 months ended August 31, 2009, the Trust returned 13.73% based on market price and 3.29% based on NAV. For the same period, the closed-
end Lipper Other States Municipal Debt Funds category posted an average return of 8.34% on a market price basis and 4.53% on a NAV basis. All returns
reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based
on price and performance based on NAV. The Trust’s overweight in pre-refunded bonds helped performance early in the reporting period. An overweight in
longer-dated education and housing bonds also contributed to results. Conversely, overweight exposure to spread products, such as healthcare bonds,
detracted from performance as these issues underperformed the broader municipal market early in the reporting period. Also hampering results was the
Trust’s overweight in Financial Guaranty Insurance Co. and XL Capital Assurance, which underperformed amid continued downgrades of the monoline
insurers. The Trust ended the period with cash and short-term investments of 22% of net assets, which detracted mildly from performance as yields on
cash equivalent securities remain at historic lows. Reinvesting cash reserves has remained difficult, as the Trust must have 80% of its assets invested
in health and education bonds and new-issue supply in Massachusetts was down by approximately 37% versus a year ago.

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, 2009 ($12.00)1  5.90% 
  Tax Equivalent Yield2  9.08% 
  Current Monthly Distribution per Common Share3  $0.059 
  Current Annualized Distribution per Common Share3  $0.708 
  Leverage as of August 31, 20094  41% 

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 A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Common Share was increased to $0.062. 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 further 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 attribu-
table 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 15.

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

  8/31/09  8/31/08  Change  High  Low 
Market Price  $12.00  $11.22  6.95%  $12.07  $7.18 
Net Asset Value  $12.19  $12.55  (2.87)%  $12.72  $9.08 

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

     Sector Allocations     
  8/31/09  8/31/08 
Education  62%  58% 
Health  24  31 
State  10  5 
Housing  3  2 
Corporate  1  3 
Transportation    1 

     Credit Quality Allocations5     
  8/31/09  8/31/08 
AAA/Aaa       26%     20% 
AA/Aa  15  22 
A  34  29 
BBB/Baa  12  12 
BB/Ba    3 
B  1  2 
Not Rated6  12  12 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor had deemed certain of these non-rated
securities to be of investment grade quality. As of August 31, 2009
and 2008, the market value of these securities was $2,117,414
representing 5% and $1,139,707 representing 2%, respectively,
of the Trust’s long-term investments.

14 ANNUAL REPORT

AUGUST 31, 2009


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 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 the Trust (including the assets obtained from lever-
age) are invested in higher-yielding portfolio investments, the 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 the 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 incremen-
tal 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 Trust’s 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 Trust’s Preferred Shares does not fluctuate in rela-
tion to interest rates. As a result, changes in interest rates can influence the
Trust’s 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 the Trusts’ NAVs
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 the Trusts’ NAVs, 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, the Trusts’ 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 shareholders will be reduced. The Trusts may be
required to sell portfolio securities at inopportune times or at distressed
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 the Trusts to incur losses. The use of leverage may limit the
Trusts’ 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 a Trust. The Trusts will
incur expenses in connection with the use of leverage, all of which are
borne by the holders of the Common Shares 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
TOBs will not exceed 50% of its total managed assets at the time such
leverage is incurred. As of August 31, 2009, the Trusts had economic
leverage from Preferred Shares and TOBs as a percentage of their total
managed assets as follows:

  Percent of 
  Leverage 
BCK  37% 
BZA  38% 
BCL  39% 
BZM  38% 
MHN  42% 
BLJ  38% 
BSE  37% 
BQH  37% 
BFY  39% 
BHV  36% 
MHE  41% 

ANNUAL REPORT

AUGUST 31, 2009

15


Derivative Financial Instruments

The Trusts may invest in various derivative instruments, including financial
futures contracts and swap agreements as specified in Note 2 of the Notes
to Financial Statements, which 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 and illiquidity
of the derivative instrument. The Trusts’ ability to successfully use a derivative

instrument depends on the investment advisor’s ability to accurately pre-
dict 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 the Trusts to sell or purchase portfolio securities at
inopportune times or for distressed values, may limit the amount of appre-
ciation the Trusts can realize on an investment or may cause the Trusts 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.

16 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

BlackRock California Insured Municipal Income Trust (BCK)

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     California — 124.1%       
County/City/Special District/School District — 64.9%     
Benicia Unified School District, GO, CAB, Series B       
 (MBIA), 5.54%, 8/01/23 (a)  $ 6,500  $ 3,031,340 
Central Unified School District, GO, Election of 2008,       
 Series A (AGC), 5.63%, 8/01/33    400  414,592 
Ceres Unified School District, GO, CAB, Election of 2001,     
 Series B (MBIA) (a):       
     5.91%, 8/01/30    3,055  907,854 
     5.92%, 8/01/31    3,180  889,192 
     5.92%, 8/01/32    3,300  868,857 
     5.92%, 8/01/33    3,440  852,569 
     5.89%, 8/01/34    3,575  843,736 
     5.90%, 8/01/35    3,275  728,786 
County of Kern California, COP, Capital Improvement       
 Projects, Series A (AGC), 6.00%, 8/01/35    1,500  1,588,380 
Evergreen Elementary School District, GO,       
 Election of 2006, Series B (AGC), 5.13%, 8/01/33  5,000  5,095,200 
Fontana Unified School District, California, GO,       
 Election of 2006, Series B (FSA), 5.25%, 8/01/26    5,400  5,735,340 
Glendale Community College District, California, GO,       
 2002 Election, Series D (MBIA), 5.00%, 11/01/31    2,500  2,531,375 
Hemet Unified School District, California, GO,       
 2006 Election, Series B (AGC), 5.13%, 8/01/37    2,140  2,168,184 
Long Beach Unified School District, California, GO,       
 Election of 2008, Series A, 5.75%, 8/01/33    1,000  1,076,430 
Los Angeles Community College District California, GO,     
 Election 2001 Series A (MBIA), 5.00%, 8/01/32    3,500  3,543,225 
Marysville Joint Unified School District California, GO,       
 Election 2008 (AGC), 5.25%, 8/01/29    1,690  1,748,035 
Murrieta Valley Unified School District Public Financing     
 Authority, Special Tax, Series A (AGC), 5.13%, 9/01/26  1,000  1,014,970 
Riverside Unified School District, California, GO, Election,     
 Series A (MBIA), 5.00%, 2/01/27    5,000  5,037,250 
San Jose Financing Authority, RB, Civic Center Project,     
 Series B (AMBAC), 5.00%, 6/01/37    6,000  6,002,580 
San Leandro Unified School District, California, GO,       
 Election of 2006, Series B (FSA), 6.25%, 8/01/29    1,125  1,263,847 
Westminster Redevelopment Agency, California, TAN,       
 Commercial Redevelopment Project Number 1 (AGC),     
 6.25%, 11/01/39    2,000  2,123,920 
      47,465,662 
Education — 12.0%       
California Educational Facilities Authority, RB, Scripps       
 College (MBIA), 5.00%, 8/01/31    2,385  2,576,563 
California State University, RB, Systemwide, Series A       
 (AMBAC), 5.00%, 11/01/30    2,000  1,997,280 

  Par   
Municipal Bonds  (000)  Value 
     California (concluded)     
Education (concluded)     
Pittsburg Unified School District, GO, Election of 2006,     
 Series B (FSA), 5.50%, 8/01/34  $ 2,000  $ 2,091,640 
Snowline Joint Unified School District, COP, Refinancing     
 Program (AGC), 5.75%, 9/01/38  2,000  2,116,920 
    8,782,403 
State — 3.8%     
State of California, GO, Various Purpose,     
 6.50%, 4/01/33  2,500  2,764,575 
Transportation — 6.7%     
County of Orange California, RB, Series B,     
 5.75%, 7/01/34  1,000  1,039,500 
San Joaquin Hills Transportation Corridor Agency,     
 California, Refunding RB, CAB, Series A (MBIA),     
 5.49%, 1/15/31 (a)  20,000  3,901,000 
    4,940,500 
Utilities — 36.7%     
California State Department of Water Resources, RB,     
 Central Valley Project, Series AE, 5.00%, 12/01/28  2,500  2,639,400 
City of Los Angeles California, Refunding RB (MBIA):     
     Series A, 5.00%, 6/01/32  4,000  4,018,040 
     Sub-Series A, 5.00%, 6/01/27  5,000  5,040,400 
City of Napa California, RB (AMBAC), 5.00%, 5/01/35  3,000  3,022,590 
East Bay Municipal Utility District, RB, Sub-Series A     
 (MBIA), 5.00%, 6/01/35  3,000  3,079,620 
East Bay Municipal Utility District, Refunding RB,     
 Series A (MBIA), 5.00%, 6/01/37  4,000  4,126,720 
Metropolitan Water District of Southern California, RB,     
 Authorization, Series B-2 (MBIA), 5.00%, 10/01/27  1,750  1,857,415 
Orange County, California, Sanitation District, COP,     
 Series B (FSA), 5.00%, 2/01/37  3,000  3,035,070 
    26,819,255 
Total Municipal Bonds — 124.1%    90,772,395 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (b)     
     California — 29.2%     
Education — 3.3%     
University of California, RB, Series O, 5.75%, 5/15/34  2,205  2,414,210 
Utilities — 13.1%     
San Diego County Water Authority, COP, Series A:     
     (FSA), 5.00%, 5/01/33  4,250  4,297,388 
     (MBIA), 5.00%, 5/01/32  5,292  5,300,260 
    9,597,648 

     Portfolio Abbreviations         
To simplify the listings of portfolio holdings in each Trust’s  ACA  American Capital Access Corp.  GNMA  Government National Mortgage Association 
Schedule of Investments, the names and descriptions of  AGC  Assured Guaranty Corp.  GO  General Obligation Bonds 
many of the securities have been abbreviated according  AMBAC  American Municipal Bond Assurance Corp.  HDA  Housing Development Authority 
to the following list:  AMT  Alternative Minimum Tax (subject to)  HFA  Housing Finance Agency 
  CAB  Capital Appreciation Bonds  IDA  Industrial Development Authority 
  CIFG  CDC IXIS Financial Guaranty  MBIA  Municipal Bond Investors Assurance 
  COP  Certificates of Participation    (National Public Finance Guaranty Corp.) 
  DRIVERS  Derivative Inverse Tax-Exempt Receipts  M/F  Multi-Family 
  EDA  Economic Development Authority  PILOT  Payment in Lieu of Taxes 
  FGIC  Financial Guaranty Insurance Co.  RB  Revenue Bonds 
  FHA  Federal Housing Administration  S/F  Single-Family 
  FNMA  Federal National Mortgage Association  TAN  Tax Anticipation Notes 
See Notes to Financial Statements.  FSA  Financial Security Assurance Inc.  VRDN  Variable Rate Demand Notes 

ANNUAL REPORT

AUGUST 31, 2009

17


Schedule of Investments (concluded)

BlackRock California Insured Municipal Income Trust (BCK)

(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (b)  (000)  Value 
California (concluded)     
County/City/Special District/School District — 12.8%     
Los Angeles Community College District, California, GO,     
 Series A:     
     Election of 2001 (FSA), 5.00%, 8/01/32  $ 3,000  $ 3,040,980 
     Election of 2008, 6.00%, 8/01/33  3,828  4,230,988 
San Diego Community College District, California, GO,     
 Election of 2002, 5.25%, 8/01/33  2,004  2,082,764 
    9,354,732 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 29.2%    21,366,590 
Total Long-Term Investments     
(Cost — $111,928,541) — 153.3%    112,138,985 
Short-Term Securities  Shares   
CMA California Municipal Money Fund, 0.04% (c)(d)  2,412,842  2,412,842 
Total Short-Term Securities     
(Cost — $2,412,842) — 3.3%    2,412,842 
Total Investments (Cost — $114,341,383*) — 156.6%    114,551,827 
Other Assets Less Liabilities — 1.2%    908,579 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (15.0)%    (11,002,438) 
Preferred Shares, at Redemption Value — (42.8)%    (31,325,412) 
Net Assets Applicable to Common Shares — 100.0%    $ 73,132,556 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $103,411,682 
Gross unrealized appreciation  $ 2,686,056 
Gross unrealized depreciation  (2,535,116) 
Net unrealized appreciation  $ 150,940 

(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(b) 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.
(c) Investments in companies considered to be an affiliate of the Trust, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net   
  Affiliate  Activity  Income 
  CMA California Municipal Money Fund  $(3,860,025)  $36,987 
(d) 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 definition may not apply for purposes of this report, which may combine sector 
  sub-classifications for reporting ease.     

Effective September 1, 2008, the Trust adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1 — Short-Term Securities  $ 2,412,842 
Level 2 — Long-Term Investments1  112,138,985 
Level 3   
Total  $ 114,551,827 

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

See Notes to Financial Statements.

18 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

BlackRock California Municipal Bond Trust (BZA)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     California — 118.5%       
Corporate — 1.7%       
Los Angeles Regional Airports Improvement Corp.,       
 California, Refunding RB, Facilities Sublease,       
 LA International, Series B, AMT, 7.50%, 12/01/24  $ 1,000  $ 848,890 
County/City/Special District/School District — 36.2%     
Hayward Unified School District California, GO, Election     
 2008, 5.00%, 8/01/27    1,000  1,030,000 
Lathrop Financing Authority, RB, Water Supply Project,       
 6.00%, 6/01/35    1,180  976,969 
Live Oak Unified School District, GO, CAB,       
 Election of 2004, Series B (Syncora) (a):       
     5.57%, 8/01/18 (b)    905  303,157 
     5.58%, 8/01/18 (b)    945  299,168 
     5.53%, 8/01/29    705  201,819 
     5.54%, 8/01/30    795  212,861 
     5.55%, 8/01/31    830  204,720 
     5.56%, 8/01/32    865  196,537 
Los Angeles Unified School District, California, GO,       
 Series D, 5.30%, 1/01/34    500  509,560 
Modesto Irrigation District, COP, Series B,       
 5.50%, 7/01/35    750  757,778 
Pittsburg Redevelopment Agency, TAN, Refunding,       
 Los Medanos Community Project, Sub-Series A,       
 6.50%, 9/01/28    1,000  1,045,700 
San Diego Regional Building Authority, California,       
 RB, County Operations Center & Annex, Series A,       
 5.38%, 2/01/36    2,000  2,049,660 
Santa Ana Unified School District:       
     COP, CAB, Financing Project (FSA),       
     5.85%, 4/01/29 (a)    15,000  5,313,750 
     GO (MBIA), 5.38%, 8/01/27    500  505,145 
Santa Cruz County Redevelopment Agency, California,       
 TAN, Live Oak, Soquel Community Improvement,       
 Series A, 7.00%, 9/01/36    500  521,160 
Val Verde Unified School District, California, GO,       
 2008 Election, Series A, 5.50%, 8/01/33    1,615  1,656,086 
Westminster Redevelopment Agency, California, TAN,       
 Subordinate, Commercial Redevelopment Project       
 Number 1 (AGC), 6.25%, 11/01/39    2,000  2,123,920 
      17,907,990 
Education — 23.9%       
California Educational Facilities Authority, RB:       
     Stanford University, Series Q, 5.25%, 12/01/32    3,000  3,085,440 
     University of San Diego, Series A, 5.25%, 10/01/30  2,250  2,253,060 
California Infrastructure & Economic Development       
 Bank, RB, J. David Gladstone Institute Project,       
 5.25%, 10/01/14    3,750  3,409,987 
Peralta Community College District California, GO,       
 2006 Election, Series C, 5.50%, 8/01/29    2,890  3,078,544 
      11,827,031 
Health — 21.2%       
ABAG Finance Authority for Nonprofit Corp., RB,       
 California Revenue Sharp Healthcare, 6.38%, 8/01/34  1,000  1,011,890 
California Health Facilities Financing Authority,       
 California, RB, Catholic Healthcare West, Series A,       
 6.00%, 7/01/39    500  499,260 

  Par   
Municipal Bonds  (000)  Value 
     California (concluded)     
Health (concluded)     
California Statewide Communities Development     
 Authority, RB:     
     Catholic Healthcare West, Series E,     
     5.50%, 7/01/31  $ 1,250  $ 1,196,337 
     Kaiser Permanente, Series A, 5.50%, 11/01/32  5,000  4,935,150 
     Sutter Health, Series B, 5.63%, 8/15/42  2,025  1,952,971 
California Statewide Community Development Authority     
 Revenue, Refunding RB, Daughters of Charity Health,     
 Series H, 5.25%, 7/01/25  1,025  904,931 
    10,500,539 
Housing — 8.9%     
M/F Housing Revenue Bond Pass-Through     
 Certificates, RB:     
     Series 3, Westgate Courtyards Apartments, AMT,     
     5.80%, 11/01/34  2,260  2,280,589 
     Series 5, AMT, 5.95%, 11/01/34  2,105  2,113,757 
    4,394,346 
State — 10.8%     
California State Public Works Board, RB, Department     
 Education, Riverside Campus Project, Series B,     
 6.50%, 4/01/34  1,000  1,070,580 
State of California, GO, Various Purpose,     
 6.50%, 4/01/33  3,875  4,285,091 
    5,355,671 
Transportation — 10.2%     
County of Orange California, RB, Series B,     
 5.75%, 7/01/34  1,000  1,039,500 
Foothill Eastern Transportation Corridor Agency,     
 California, Refunding RB, 5.75%, 1/15/40  3,845  3,032,359 
San Francisco City & County Airports Commission,     
 Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19  950  999,030 
    5,070,889 
Utilities — 5.6%     
California Infrastructure & Economic Development     
 Bank, RB, California Independent System Operator,     
 Series A, 6.25%, 2/01/39  1,000  1,030,800 
Orange County, California, Sanitation District, COP,     
 Series B (FSA), 5.00%, 2/01/37  1,700  1,719,873 
    2,750,673 
Total Municipal Bonds in California    58,656,029 
     Multi-State — 7.7%     
Housing — 7.7%     
Charter Mac Equity Issuer Trust,     
 7.20%, 11/15/14 (c)(d)  3,500  3,787,210 
Total Municipal Bonds in Multi-State    3,787,210 
     Puerto Rico — 2.2%     
County/City/Special District/School District — 2.2%     
Puerto Rico Sales Tax Financing Corp., RB,     
 First Sub-Series A, 6.50%, 8/01/44  1,000  1,080,360 
Total Municipal Bonds in Puerto Rico    1,080,360 
Total Municipal Bonds — 128.4%    63,523,599 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

19


Schedule of Investments (concluded)

BlackRock California Municipal Bond Trust (BZA)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to  Par   
Tender Option Bond Trusts (e)  (000)  Value 
California — 27.7%     
County/City/Special District/School District — 18.8%     
Los Angeles Community College District, California, GO:     
     Election 2001 (FSA), 5.00%, 8/1/32  $ 2,000  $ 2,027,320 
Election 2008, Series A, 6.00%, 8/1/33  2,879  3,181,526 
San Diego Community College District, California, GO,     
 Election 2002, 5.25%, 8/1/33  1,002  1,041,382 
Santa Clara County, California, Financing Authority Lease   
 Revenue Refunding Bonds, Series L, 5.25%, 5/15/36  2,999  3,061,636 
    9,311,864 
Education — 3.7%     
University of California, RB, Series O, 5.75%, 5/15/34  1,695  1,855,822 
Utilities — 5.2%     
Eastern Municipal Water District, California, COP,     
 Series H, 5.00%, 7/1/33  2,549  2,563,196 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 27.7%    13,730,882 
Total Long-Term Investments     
(Cost — $76,403,427) — 156.1%    77,254,481 
Short-Term Securities  Shares   
CMA California Municipal Money Fund, 0.04% (f)(g)  3,649,532  3,649,532 
Total Short-Term Securities     
(Cost — $3,649,532) — 7.4%    3,649,532 
Total Investments (Cost — $80,052,959*) — 163.5%    80,904,013 
Liabilities in Excess of Other Assets — (2.9)%    (1,445,862) 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (15.2)%    (7,512,904) 
Preferred Shares, at Redemption Value — (45.4)%    (22,450,295) 
Net Assets Applicable to Common Shares — 100.0%    $ 49,494,952 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 72,513,617 
Gross unrealized appreciation  $ 2,442,495 
Gross unrealized depreciation  (1,560,576) 
Net unrealized appreciation  $ 881,919 

(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) 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.
(d) 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, and is subject to mandatory redemption at maturity.
(e) Securities represent underlying bonds transferred to a tender option bond trust
in exchange for which the Trust acquired residual interest certificates. These
securities serve as collateral 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, for purposes of 
  Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
      Net   
  Affiliate  Activity  Income 
  CMA California Municipal Money Fund  $1,515,427  $15,009 
(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 
  market 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.     
  Effective September 1, 2008, the Trust adopted Financial Accounting Standards 
  Board Statement of Financial Accounting Standards No. 157, “Fair Value 
  Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes 
  a framework for measuring fair values and requires additional disclosures about the 
  use of 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 securities 
    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 methodology used for valuing securities are not necessarily an indica- 
  tion 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, 2009 in determin- 
  ing the fair valuation of the Trust’s investments:     
        Investments in 
  Valuation Inputs    Securities 
        Assets 
  Level 1 — Short-Term Securities  $ 3,649,532 
  Level 2 — Long-Term Investments1    77,254,481 
  Level 3     
  Total  $ 80,904,013 
    1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

20 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

BlackRock California Municipal Income Trust II (BCL)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     California — 109.2%       
Corporate — 2.5%       
California Pollution Control Financing Authority, RB,       
 Waste Management Inc. Project, Series C, AMT,       
 6.75%, 12/01/27  $ 1,225  $ 1,261,040 
Los Angeles Regional Airports Improvement Corp.,       
 California, RB, Series C, AMT, 7.50%, 12/01/24    1,785  1,515,269 
      2,776,309 
County/City/Special District/School District — 46.0%     
Butte-Glenn Community College District, GO,       
 Election of 2002, Series C, 5.50%, 8/01/30    3,500  3,674,440 
Chabot-Las Positas, California, Community College       
 District, GO (Election of 2004), Series B (AMBAC),       
 5.00%, 8/01/31    2,500  2,530,500 
Corona-Norca Unified School District, California,       
 Special Tax, Community Facilities District No. 98-1       
 (AMBAC), 5.10%, 9/01/32    6,000  5,666,520 
Long Beach Unified School District, California, GO,       
 Election of 2008, Series A, 5.75%, 8/01/33    1,000  1,076,430 
Los Alamitos Unified School District, California, GO,       
 School Facilities Improvement District No. 1,       
 5.50%, 8/01/33    5,125  5,319,237 
Los Angeles Community College District, California, GO,     
 2003 Election, Series F-1, 5.00%, 8/01/33    1,500  1,514,985 
Los Angeles Unified School District, California, GO,       
 Series D, 5.30%, 1/01/34    2,100  2,140,152 
Modesto Irrigation District, COP:       
     Capital Improvement, Series A, 5.75%, 10/01/29  3,000  3,157,860 
     Series B, 5.50%, 7/01/35    1,650  1,667,111 
Pittsburg Redevelopment Agency, Tax Allocation,       
 Refunding, Subordinate, Los Medanos Community       
 Project, Series A, 6.50%, 9/01/28    2,000  2,091,400 
San Diego Regional Building Authority, California,       
 RB, County Operations Center & Annex, Series A,       
 5.38%, 2/01/36    1,600  1,639,728 
San Jose Unified School District, Santa Clara       
 County California, GO, Election of 2002, Series D,       
 5.00%, 8/01/32    2,750  2,785,420 
Santa Ana Unified School District, GO, Election of 2008,     
 Series A:       
     5.13%, 8/01/33    2,000  1,995,800 
     5.50%, 8/01/30    5,830  6,058,652 
Santa Cruz County Redevelopment Agency, California,       
 TAN, Live Oak, Soquel Community Improvement,       
 Series A, 6.63%, 9/01/29    1,000  1,039,630 
Torrance Unified School District, California, GO,       
 Election of 2008, Measure Z, 6.00%, 8/01/33    1,500  1,627,935 
Val Verde Unified School District, California, GO,       
 2008 Election, Series A, 5.50%, 8/01/33    5,000  5,127,200 
Westminster Redevelopment Agency, California, TAN,       
 Subordinate, Commercial Redevelopment Project No. 1     
 (AGC), 6.25%, 11/01/39    1,400  1,486,744 
      50,599,744 
Education — 6.0%       
Oak Grove School District, California, GO,       
 Election of 2008, Series A, 5.50%, 8/01/33    2,000  2,078,940 
University of California, RB:       
     General, Series A (AMBAC), 5.00%, 5/15/33    2,000  2,014,640 
     Limited Project, Series D (MBIA), 5.00%, 5/15/32  2,500  2,538,150 
      6,631,730 

  Par   
Municipal Bonds  (000)  Value 
     California (concluded)     
Health — 21.0%     
ABAG Finance Authority for Nonprofit Corp.,     
 RB, California Revenue Sharp Healthcare,     
 6.38%, 8/01/34  $ 1,000  $ 1,011,890 
California Health Facilities Financing Authority,     
 California, RB:     
     Catholic Healthcare West, Series A, 6.00%, 7/01/34  1,400  1,409,156 
     Providence Health & Services, Series C,     
     6.50%, 10/01/38  1,000  1,084,820 
California Infrastructure & Economic Development     
 Bank, RB, Kaiser Hospital Assistance I, LLC, Series A,     
 5.55%, 8/01/31  1,735  1,741,558 
California Statewide Communities Development     
 Authority, RB:     
     Catholic Healthcare West, Series E, 5.50%, 7/01/31  1,250  1,196,338 
     Health Facilities, Memorial Health Services,     
     Series A, 5.50%, 10/01/33  7,000  6,844,320 
     Kaiser Permanente, Series A, 5.50%, 11/01/32  5,000  4,935,150 
     Sutter Health, Series B, 5.50%, 8/15/34  5,000  4,828,850 
    23,052,082 
State — 10.7%     
California State Public Works Board, RB, Department of     
 Education, Riverside Campus Project, Series B,     
 6.50%, 4/01/34  3,000  3,211,740 
State of California, GO, Various Purpose,     
 6.50%, 4/01/33  7,750  8,570,183 
    11,781,923 
Transportation — 14.0%     
County of Orange California, RB, Series B,     
 5.75%, 7/01/34  3,000  3,118,500 
County of Sacramento California, RB, Senior, Series B,     
 5.75%, 7/01/39  500  500,810 
Foothill Eastern Transportation Corridor Agency,     
 California, RB, CAB, Senior Lien, Series A,     
 5.76%, 1/01/26 (a)(b)  10,000  4,834,300 
Port of Oakland, RB, Series K, AMT (MBIA),     
 5.75%, 11/01/29  680  673,533 
San Francisco City & County Airports Commission,     
 Refunding RB, 2nd Series A-3, AMT, 6.75%, 5/01/19  1,575  1,656,286 
San Joaquin Hills Transportation Corridor Agency,     
 California, Refunding RB, CAB, Series A (MBIA),     
 5.50%, 1/15/34 (b)  30,000  4,600,800 
    15,384,229 
Utilities — 9.0%     
California Infrastructure & Economic Development     
 Bank, RB, California Independent System Operator,     
 Series A, 6.25%, 2/01/39  2,000  2,061,600 
City of Chula Vista California, RB, 5.88%, 1/01/34  500  512,060 
City of Santa Rosa California, RB, CAB, Series B     
 (AMBAC), 5.42%, 9/01/25 (b)  2,685  1,089,063 
Los Angeles Department of Water & Power, RB, System,     
 Series A, 5.38%, 7/01/34  1,600  1,659,904 
San Diego Public Facilities Financing Authority, RB,     
 Senior, Series A, 5.25%, 5/15/34  2,000  2,031,760 
San Diego Public Facilities Financing Authority,     
 Refunding RB, Series A, 5.25%, 8/01/38  2,500  2,514,025 
    9,868,412 
Total Municipal Bonds in California    120,094,429 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

21


Schedule of Investments (concluded)

BlackRock California Municipal Income Trust II (BCL)

(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     Multi-State — 3.7%     
Housing — 3.7%     
Charter Mac Equity Issuer Trust (c)(d):     
     5.75%, 5/15/15  $ 500  $ 509,025 
     6.00%, 5/15/15  1,500  1,543,425 
     6.00%, 5/15/19  1,000  1,026,960 
     6.30%, 5/15/19  1,000  1,031,820 
Total Municipal Bonds in Multi-State    4,111,230 
     Puerto Rico — 2.0%     
County/City/Special District/School District — 2.0%     
Puerto Rico Sales Tax Financing Corp., RB,     
 First Sub-Series A, 6.50%, 8/01/44  2,000  2,160,720 
Total Municipal Bonds in Puerto Rico    2,160,720 
Total Municipal Bonds — 114.9%    126,366,379 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (e)     
     California — 38.4%     
County/City/Special District/School District — 16.9%     
Los Angeles Community College District, California, GO,     
 Series A (FSA):     
     Election 2001, 5.00%, 8/01/32  3,000  3,040,980 
     Election 2008, 6.00%, 8/01/33  3,828  4,230,988 
San Diego Community College District, California, GO,     
 Election of 2002, 5.25%, 8/01/33  2,991  3,108,603 
Santa Clara County Financing Authority, RB, Refunding     
 Lease Series L, 5.25%, 5/15/36  8,005  8,172,939 
    18,553,510 
Education — 8.3%     
California Educational Facilities Authority, RB, University     
 Southern California, Series A, 5.25%, 10/01/39  3,495  3,680,550 
California State University, RB, Systemwide, Series A,     
 (FSA), 5.00%, 11/01/39  2,400  2,408,208 
University of California, RB, Series O, 5.75%, 5/15/34  2,805  3,071,138 
    9,159,896 
Utilities — 13.2%     
California State Department of Water Resources,     
 Refunding RB, Central Valley Project, Series AE,     
 5.00%, 12/01/29  7,000  7,390,320 
Eastern Municipal Water District, California, COP,     
 Series H, 5.00%, 7/01/33  7,097  7,136,742 
    14,527,062 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 38.4%    42,240,468 
Total Long-Term Investments     
(Cost — $167,965,822) — 153.3%    168,606,847 
Short-Term Securities  Shares   
CMA California Municipal Money Fund,     
 0.04% (f)(g)  6,042,881  6,042,881 
Total Short-Term Securities     
(Cost — $6,042,881) — 5.5%    6,042,881 
Total Investments (Cost — $174,008,703*) — 158.8%    174,649,728 
Other Assets Less Liabilities — 4.6%    5,084,243 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (21.1)%    (23,200,005) 
Preferred Shares, at Redemption Value — (42.3)%    (46,553,285) 
Net Assets Applicable to Common Shares — 100.0%    $109,980,681 
See Notes to Financial Statements.     

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

     Aggregate cost  $150,794,537 
     Gross unrealized appreciation  $ 4,674,173 
     Gross unrealized depreciation  (4,005,629) 
     Net unrealized appreciation  $ 668,544 
(a) Security is collateralized by Municipal or US Treasury Obligations.   

(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(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, and is subject to mandatory redemption at 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, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

      Net   
  Affiliate  Activity  Income 
  CMA California Municipal Money Fund  $6,042,637  $40,664 
(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 
  market 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.     
  Effective September 1, 2008, The Trust adopted Financial Accounting Standards 
  Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure- 
  ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a 
  framework for measuring fair values and requires additional disclosures about the 
  use of 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 securities 
    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 methodology used for valuing securities are not necessarily an indica- 
  tion 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, 2009 in determin- 
  ing the fair valuation of the Trust’s investments:     
        Investments in 
  Valuation Inputs    Securities 
        Assets 
  Level 1 — Short-Term Securities  $ 6,042,881 
  Level 2 — Long-Term Investments1    168,606,847 
  Level 3     
  Total  $ 174,649,728 
    1 See above Schedule of Investments for values in each sector.   

22 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

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

    Par   
Municipal Bonds    (000)  Value 
     Maryland — 115.1%       
Corporate — 1.0%       
Maryland Economic Development Corp., Refunding RB,     
 Potomac, 6.20%, 9/01/22  $ 250  $ 274,850 
County/City/Special District/School District — 39.0%     
City of Annapolis Maryland, TAN, Park Place Project,       
 Series A, 5.35%, 7/01/34    495  340,803 
City of Baltimore Maryland, Special Tax, Special       
 Obligation, Harborview Lot Number 2, 6.50%, 7/01/31  993  729,150 
County of Anne Arundel Maryland, RB, Community       
 College Project, 5.25%, 9/01/28    1,870  1,874,881 
County of Baltimore Maryland, GO, Metropolitan District:     
     67th Issue, 5.00%, 6/01/22    2,000  2,074,920 
     68th Issue, 5.00%, 8/01/28    2,000  2,055,040 
County of Frederick Maryland, Special Tax, Urbana       
 Community Development Authority, 6.63%, 7/01/25  1,000  860,010 
County of Montgomery Maryland, RB, Metrorail       
 Garage Projects:       
     5.00%, 6/01/23    500  524,835 
     5.00%, 6/01/24    1,435  1,506,276 
County of Prince George’s Maryland, Special Obligation,     
 National Harbor Project, 5.20%, 7/01/34    1,500  1,075,875 
      11,041,790 
Education — 17.6%       
Maryland Health & Higher Educational Facilities       
 Authority, RB:       
     Board of Child Care, 5.38%, 7/01/32    2,000  1,998,540 
     Loyola College Issue, 5.00%, 10/01/39    2,000  1,873,140 
Maryland Industrial Development Financing Authority,       
 RB, Our Lady of Good Counsel School, Series A,       
 6.00%, 5/01/35    1,000  839,000 
University System of Maryland, RB, Auxiliary       
 Facilities & Tuition Series A, 4.50%, 4/01/28    250  256,438 
      4,967,118 
Health — 29.4%       
County of Baltimore Maryland, RB, Oak Crest Village Inc.     
 Facilities, Series A, 5.00%, 1/01/37    1,000  888,400 
County of Howard Maryland, Refunding RB, Vantage       
 House Facilities, Series A, 5.25%, 4/01/33    500  323,485 
Maryland Health & Higher Educational Facilities       
 Authority, RB:       
     Carroll County General Hospital, 6.00%, 7/01/37  1,990  2,008,328 
     Peninsula Regional Medical Center, 5.00%, 7/01/36  1,000  966,960 
     Union Hospital of Cecil County Issue,       
     5.63%, 7/01/32    2,000  1,993,460 
     University of Maryland Medical, 5.25%, 7/01/11 (a)  2,000  2,153,240 
      8,333,873 
Housing — 1.7%       
Maryland Community Development Administration, RB,     
 Residential, Series A, AMT, 5.75%, 9/01/39    470  475,339 
Transportation — 6.7%       
Maryland State Transportation Authority, RB, Baltimore,     
 Wash International Airport, Series B, AMT (AMBAC),       
 5.13%, 3/01/24    2,000  1,906,520 
Utilities — 19.7%       
City of Baltimore Maryland, Refunding RB, Wastewater     
 Projects, Series A (MBIA):       
     5.20%, 7/01/32    2,500  2,554,725 
     5.13%, 7/01/42    2,000  2,009,060 
County of Anne Arundel Maryland, GO, Consolidated,       
 Water & Sewer, 4.75%, 4/01/39    1,000  1,017,690 
      5,581,475 
Total Municipal Bonds in Maryland      32,580,965 
See Notes to Financial Statements.       

    Par   
Municipal Bonds    (000)  Value 
     District of Columbia — 3.6%       
Transportation — 3.6%       
Washington Metropolitan Area Transit Authority, RB,       
 Series A, 5.13%, 7/01/32  $ 1,000  $ 1,017,320 
Total Municipal Bonds in District of Columbia      1,017,320 
     Guam — 0.9%       
County/City/Special District/School District — 0.9%       
Territory of Guam, RB, Section 30, Series A,       
 5.63%, 12/01/29    250  249,227 
Total Municipal Bonds in Guam      249,227 
     Multi-State — 7.6%       
Housing — 7.6%       
Charter Mac Equity Issuer Trust, 7.20%, 11/15/14 (b)(c)  2,000  2,164,120 
Total Municipal Bonds in Multi-State      2,164,120 
     Puerto Rico — 18.1%       
State — 4.9%       
Puerto Rico Public Buildings Authority, RB, Government       
 Facilities, Series D, 5.38%, 7/01/33    350  313,463 
Puerto Rico Sales Tax Financing Corp., RB,       
 First Sub-Series A, 6.38%, 8/01/39    1,000  1,072,460 
      1,385,923 
Tobacco — 4.0%       
Children’s Trust Fund, RB, Asset Backed Bonds,       
 5.50%, 5/15/39    1,500  1,141,860 
Transportation — 9.2%       
Puerto Rico Highway & Transportation Authority:       
     RB, Series D, 5.25%, 7/01/12 (a)    1,500  1,659,840 
     Refunding RB, Series CC (FSA), 5.25%, 7/01/36    895  937,307 
      2,597,147 
Total Municipal Bonds in Puerto Rico      5,124,930 
Total Municipal Bonds — 145.3%      41,136,562 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (d)       
     Maryland — 11.0%       
Transportation — 11.0%       
Maryland State Transportation Authority, RB, Transit       
 Facility Project (FSA), 5.00%, 7/01/41    3,000  3,101,520 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 11.0%      3,101,520 
Total Long-Term Investments       
(Cost — $44,872,807) — 156.3%      44,238,082 

ANNUAL REPORT

AUGUST 31, 2009

23


Schedule of Investments (concluded)

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

Short-Term Securities  Shares  Value 
FFI Institutional Tax-Exempt Fund, 0.22% (e)(f)  1,200,364  $ 1,200,364 
Total Short-Term Securities     
(Cost — $1,200,364) — 4.2%    1,200,364 
Total Investments (Cost — $46,073,171*) — 160.5%    45,438,446 
Other Assets Less Liabilities — 1.3%    376,154 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (5.3)%    (1,503,884) 
Preferred Shares, at Redemption Value — (56.5)%    (16,000,854) 
Net Assets Applicable to Common Shares — 100.0%    $ 28,309,862 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 44,492,408 
Gross unrealized appreciation  $ 1,227,831 
Gross unrealized depreciation  (1,781,793) 
Net unrealized depreciation  $ (553,962) 

(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, and is subject to mandatory redemption at 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
collateral in a financing transaction. See Note 1 of the Notes to Financial State-
ments for details of municipal bonds transferred to tender options bond trusts.
(e) Investments in companies considered to be an affiliate of the Trust, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net   
  Affiliate  Activity  Income 
  FFI Institutional Tax-Exempt Fund  $(903,062)  $28,074 
(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 
  market 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.     

Effective September 1, 2008, the Trust adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1 — Short-Term Securities  $ 1,200,364 
Level 2 — Long-Term Investments1  44,238,082 
Level 3   
Total  $ 45,438,446 

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

See Notes to Financial Statements.

24 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

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

(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     New York — 125.0%       
Corporate — 11.1%       
New York City Industrial Development Agency, RB, AMT:     
     Japan Airlines Co. (FSA), 6.00%, 11/01/15  $ 9,640  $ 9,655,135 
     Terminal One Group Association Project,       
     5.50%, 1/01/24    1,500  1,446,585 
New York Liberty Development Corp., RB, Goldman       
 Sachs Headquarters, 5.25%, 10/01/35    1,000  973,640 
New York State Energy Research & Development       
 Authority, RB:       
     Brooklyn Union Gas, KeySpan, Series A, AMT (FGIC),     
     4.70%, 2/01/24    9,340  8,729,538 
     Lilco Project, Series A (MBIA), 5.15%, 3/01/16    2,000  2,005,920 
New York State Energy Research & Development       
 Authority, Refunding RB, Central Hudson Gas,       
 Series A (AMBAC), 5.45%, 8/01/27    6,000  6,065,940 
Suffolk County Industrial Development Agency,       
 New York, RB, AMT:       
     KeySpan, Port Jefferson, 5.25%, 6/01/27    4,355  3,991,924 
     Ogden Martin System Huntington (AMBAC),       
     6.00%, 10/01/10    4,660  4,820,956 
     Ogden Martin System Huntington (AMBAC),       
     6.15%, 10/01/11    5,000  5,271,050 
     Ogden Martin System Huntington (AMBAC),       
     6.25%, 10/01/12    3,530  3,773,111 
      46,733,799 
County/City/Special District/School District – 37.8%     
City of Buffalo New York, GO, General Improvement,       
 Series D (FSA), 6.00%, 12/01/09 (a)    2,000  2,048,180 
City of New York, New York, GO:       
     Series A (FSA), 6.25%, 5/15/26    3,700  3,867,943 
     Series B (MBIA), 5.75%, 8/01/13    2,280  2,393,749 
     Sub-Series J-1, 4.50%, 5/15/30    1,000  989,310 
City of Yonkers New York, GO, Series A (FGIC),       
 5.75%, 10/01/10    1,795  1,914,529 
Erie County, GO, Public Improvement,       
 Series A (MBIA):       
     5.75%, 10/01/09 (a)    915  927,947 
     5.75%, 10/01/13    110  111,303 
Hudson Yards Infrastructure Corp., RB, Series A:       
     (FGIC), 5.00%, 2/15/47    10,250  9,145,767 
     (MBIA), 4.50%, 2/15/47    13,180  11,153,970 
New York City Health & Hospital Corp., RB, Health       
 System, Series A (MBIA), 5.25%, 2/15/17    2,000  2,011,680 
New York City Industrial Development Agency,       
 RB, PILOT:       
     Capital Appreciation, Yankee Stadium       
     (AGC), 6.46%, 3/01/39 (b)    1,380  232,447 
     Queens Baseball Stadium (AGC),       
     6.38%, 1/01/39    800  884,952 
     Queens Baseball Stadium (AMBAC),       
     5.00%, 1/01/31    4,000  3,707,720 
     Queens Baseball Stadium (AMBAC),       
     5.00%, 1/01/36    12,740  11,514,539 
     Queens Baseball Stadium (AMBAC),       
     5.00%, 1/01/39    4,000  3,582,040 
     Queens Baseball Stadium (AMBAC),       
     5.00%, 1/01/46    7,800  6,837,090 
     Yankee Stadium (FGIC), 5.00%, 3/01/46    10,500  9,201,465 
     Yankee Stadium (MBIA), 5.00%, 3/01/36    3,950  3,569,338 
New York City Transitional Finance Authority, RB:       
     Fiscal 2008, Series S-1, 4.50%, 1/15/38    1,760  1,634,811 
     Fiscal 2009, Series S-1 (AGC), 5.50%, 7/15/38    4,000  4,179,560 
     Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/39    1,250  1,307,662 
See Notes to Financial Statements.       

    Par   
Municipal Bonds    (000)  Value 
     New York (continued)       
County/City/Special District/School District (concluded)     
New York City Transitional Finance Authority, RB (concluded):   
     Future Tax Secured, Series B (FGIC),       
     6.25%, 11/15/18  $ 6,405  $ 6,735,882 
     Future Tax Secured, Series C (FGIC),       
     5.00%, 2/01/33    10,000  10,145,900 
     Future Tax Secured, Series E (MBIA),       
     5.25%, 2/01/22    2,500  2,652,075 
     Series A (FGIC), 5.00%, 11/15/26    1,000  1,025,810 
     Series B (MBIA), 5.50%, 2/01/12    1,145  1,223,295 
     Series B (MBIA), 5.50%, 2/01/13    805  859,064 
     Series S-2 (FSA), 5.00%, 1/15/37    3,750  3,765,862 
     Series S-2 (MBIA), 4.25%, 1/15/34    4,830  4,244,749 
New York Convention Center Operating Corp., RB,       
 Hotel Unit Fee Secured (AMBAC):       
     5.00%, 11/15/30    2,100  2,048,886 
     5.00%, 11/15/35    21,000  19,688,130 
     5.00%, 11/15/44    2,055  1,859,467 
Oneida-Herkimer Solid Waste Management Authority,       
 New York, RB (FSA), 5.50%, 4/01/13    1,800  2,022,084 
Sales Tax Asset Receivable Corp., RB (AMBAC):       
     DRIVERS, Series 1438Z, 7.72%, 9/07/09 (c)    1,250  1,422,038 
     Series A, 5.00%, 10/15/32    14,175  14,580,263 
Syracuse Industrial Development Agency, New York,       
 Carousel Center Project, Series A, AMT (Syncora),       
 5.00%, 1/01/36    10,000  6,566,600 
      160,056,107 
Education — 10.9%       
Albany Industrial Development Agency, RB, University       
 Heights, Albany Law School, Series A (Radian),       
 6.75%, 12/01/09 (a)    3,375  3,462,345 
Madison County Industrial Development Agency,       
 New York, RB, Colgate University Project, Series A       
 (AMBAC), 5.00%, 7/01/30    4,000  4,097,240 
New York City Industrial Development Agency,       
 RB, Polytechnic University Project (ACA),       
 5.25%, 11/01/37    2,160  1,730,938 
New York City Industrial Development Agency,       
 Refunding RB, Nightingale, Bamford School (AMBAC),     
 5.25%, 1/15/17    1,200  1,284,984 
New York City Transitional Finance Authority, RB,       
 Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33    3,000  3,033,390 
New York City Trust for Cultural Resources,       
 Refunding RB, American Museum Natural History,       
 Series A (MBIA), 5.00%, 7/01/36    3,800  3,855,100 
New York State Dormitory Authority, RB:       
     853 Schools Program, Issue 2, Series E (AMBAC),     
     5.75%, 7/01/19    1,340  1,357,139 
     Mount Sinai School Medical New York University       
     (MBIA), 5.00%, 7/01/35    2,100  2,081,793 
     NY University, Insured, Series 1 (AMBAC),       
     5.50%, 7/01/40    3,500  3,956,190 
     Pace University (MBIA), 6.00%, 7/01/10 (a)    5,345  5,644,213 
Schenectady Industrial Development Agency, RB,       
 Union College Project, Series A (AMBAC) (a):       
     5.45%, 12/01/09    5,000  5,163,550 
     5.63%, 7/01/11    3,000  3,324,360 
Westchester County Industrial Development Agency,       
 New York, RB, Purchase College Foundation Housing,     
 Series A (AMBAC), 5.75%, 12/01/31    7,000  7,099,190 
      46,090,432 

ANNUAL REPORT

AUGUST 31, 2009

25


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 — 8.0%       
New York City Industrial Development Agency,       
 RB, Royal Charter, NY Presbyterian (FSA),       
 5.75%, 12/15/29  $ 7,965  $ 8,364,684 
New York State Dormitory Authority, RB:       
     Gustavus Adolphus Child, Series B (AMBAC),       
     5.50%, 7/01/18    2,058  2,083,725 
     Hudson Valley Hospital (FSA), 5.00%, 8/15/36    5,000  5,182,450 
     Montefiore Hospital (MBIA), 5.00%, 8/01/33    1,000  1,011,160 
     NY & Presbyterian Hospital (AMBAC),       
     5.50%, 8/01/11    1,000  1,064,130 
     NY & Presbyterian Hospital (FSA), 5.00%, 8/15/36  4,000  4,024,320 
     NY & Presbyterian Hospital (FSA), 5.25%, 2/15/31  1,500  1,536,720 
     NY State Rehabilitation Association, Series A       
     (CIFG), 5.13%, 7/01/23    1,000  949,530 
     NY State Rehabilitation Association, Series A       
     (CIFG), 5.25%, 7/01/19    1,180  1,182,950 
     North Shore Long Island Jewish Health System,       
     Series A, 5.50%, 5/01/37    1,825  1,791,767 
     Saint Barnabas Hospital (AMBAC), 5.45%, 8/01/35  2,150  2,150,409 
     Saint Charles Hospital & Rehabilitation Center,       
     Series A (MBIA), 5.63%, 7/01/12    3,400  3,438,828 
     Saint Luke’s, Roosevelt Hospital, FHA,       
     4.90%, 8/15/31    1,000  997,310 
      33,777,983 
Housing — 4.3%       
New York City Housing Development Corp., RB, AMT:       
     Series C, 5.00%, 11/01/26    1,250  1,213,050 
     Series C, 5.05%, 11/01/36    2,000  1,806,020 
     Series H-1, 4.70%, 11/01/40    1,000  859,840 
New York Mortgage Agency, New York, RB:       
     Homeowner Mortgage, Series 67, AMT (MBIA),       
     5.70%, 10/01/17    2,140  2,141,883 
     Homeowner Mortgage, Series 83 (MBIA),       
     5.55%, 10/01/27    2,100  2,100,798 
     Series 82, AMT (MBIA), 5.65%, 4/01/30    1,035  981,801 
     Series 133, AMT, 4.95%, 10/01/21    1,500  1,506,465 
     Series 143, AMT, 4.90%, 10/01/37    1,000  901,850 
     Series 143, AMT (MBIA), 4.85%, 10/01/27    2,000  1,904,980 
     Series 145, AMT, 5.13%, 10/01/37    1,000  949,360 
New York State HFA, RB, Saint Philips Housing, Series A,     
 AMT (FNMA), 4.65%, 11/15/38    1,000  903,080 
New York State Mortgage Agency Revenue,       
 Refunding RB, Homeowner Mortgage, Series 97,       
 5.50%, 4/01/31    1,000  1,000,550 
Yonkers Industrial Development Agency, New York, RB,     
 Monastery Manor Association L.P. Project, AMT,       
 5.25%, 4/01/37    2,000  1,878,140 
      18,147,817 
State — 12.9%       
New York State Dormitory Authority, RB:       
     Education, Series B, 5.75%, 3/15/36    5,000  5,480,300 
     Master Boces Program Lease (AGC),       
     4.75%, 8/15/24    1,090  1,113,402 
     Master Boces Program Lease (AGC),       
     5.00%, 8/15/28    250  255,305 
     Mental Health Facilities, Series B,       
     5.25%, 2/15/14 (a)    1,550  1,745,936 
     Mental Health Services Facilities Improvement,       
     Series B (FSA), 5.00%, 2/15/33    4,500  4,577,895 

  Par   
Municipal Bonds  (000)  Value 
     New York (continued)     
State (concluded)     
New York State Dormitory Authority, RB (concluded):     
     Mental Health Services Facilities, Series C, AMT     
     (FSA), 5.40%, 2/15/33  $ 5,650  $ 5,510,501 
     Municipal Health Facilities Improvement Program,     
     Series 1 (FSA), 5.50%, 1/15/14  1,535  1,640,301 
     School District Financing Program, Series A (FSA),     
     5.00%, 10/01/35  5,450  5,508,801 
     School District Financing Program, Series C (FSA),     
     5%, 10/01/37  2,500  2,521,400 
     School District Financing Program, Series D (MBIA),     
     5.00%, 10/01/30  1,240  1,244,861 
     School District Financing Program, Series E (MBIA),     
     5.75%, 10/01/30  6,900  7,173,654 
New York State Dormitory Authority, Refunding RB,     
 Secured Hospital, North General Hospital (Syncora),     
 5.75%, 2/15/17  2,000  2,137,040 
New York State Thruway Authority, RB:     
     Second General, Series B, 5.00%, 4/01/27  1,000  1,045,940 
     Series A (AMBAC), 5.00%, 4/01/26  8,700  9,081,147 
New York State Urban Development Corp., RB:     
     Personal Income Tax, Series C-1 (MBIA),     
     5.00%, 3/15/13 (a)  3,000  3,386,340 
     State Personal Income Tax, State Facilities,     
     Series A-1 (MBIA), 5.00%, 3/15/29  2,000  2,057,140 
    54,479,963 
Tobacco — 5.0%     
Tobacco Settlement Financing Corp., New York, RB,     
 Asset Backed (AMBAC):     
     Series A-2, 5.25%, 6/01/20  5,000  5,250,350 
     Series A-3, 5.25%, 6/01/21  13,275  13,875,428 
     Series A-4, 5.25%, 6/01/22  2,000  2,081,120 
    21,206,898 
Transportation — 22.7%     
Metropolitan Transportation Authority, RB:     
     Series 2008C, 6.50%, 11/15/28  6,015  6,782,454 
     Series C (FSA), 4.75%, 7/01/18 (a)  2,535  2,796,130 
Metropolitan Transportation Authority, Refunding     
 RB (MBIA):     
     Series A, 5.25%, 11/15/31  2,500  2,523,250 
     Series F, 5.25%, 11/15/12 (a)  6,300  7,132,923 
New York State Thruway Authority, RB:     
     Series F (AMBAC), 5.00%, 1/01/30  5,000  5,076,800 
     Series G (FSA), 4.75%, 1/01/29  1,250  1,253,075 
     Series G (FSA), 4.75%, 1/01/30  1,000  994,780 
     Series G (FSA), 5.00%, 1/01/32  8,225  8,315,640 
     Series H (FSA), 5.00%, 1/01/37  8,500  8,574,375 
Port Authority of New York & New Jersey,     
 Consolidated RB, 141st Series (CIFG), AMT,     
 4.50%, 9/01/35  1,000  906,110 
Port Authority of New York & New Jersey, RB, Special     
 Project, JFK International Air Terminal, Series 6,     
 AMT (MBIA):     
     6.25%, 12/01/11  3,000  3,115,440 
     6.25%, 12/01/15  7,830  8,136,231 
     5.90%, 12/01/17  7,000  6,909,490 
     5.75%, 12/01/22  26,725  24,892,200 
Triborough Bridge & Tunnel Authority, New York, RB:     
     Sub-Series A (MBIA), 5.25%, 11/15/30  6,000  6,158,700 
     Subordinate Bonds (AMBAC), 5.00%, 11/15/28  2,465  2,524,875 
    96,092,473 

See Notes to Financial Statements.

26 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments (continued)

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

  Par   
Municipal Bonds  (000)  Value 
     New York (concluded)     
Utilities — 12.3%     
Long Island Power Authority, RB:     
     General, Series A (AGC), 6.00%, 5/01/33  $ 1,500  $ 1,652,430 
     General, Series B (FSA), 5.00%, 12/01/35  3,500  3,549,770 
     Series A (AGC), 5.75%, 4/01/39  1,000  1,083,440 
     Series A (AMBAC), 5.00%, 9/01/29  3,000  3,026,400 
New York City Municipal Water Finance Authority, RB:     
     Fiscal 2004, Series C (MBIA), 5.00%, 6/15/35  1,000  1,010,530 
     Series A (AMBAC), 5.00%, 6/15/35  3,500  3,529,750 
     Series A (FSA), 4.25%, 6/15/39  2,200  1,968,164 
     Series A (MBIA), 5.75%, 6/15/11 (a)  23,000  25,060,570 
     Series A (MBIA), 5.13%, 6/15/34  1,250  1,266,575 
New York City Municipal Water Finance Authority,     
 Refunding RB, Crossover, Series F (FSA),     
 5.00%, 6/15/29  500  505,075 
New York State Environmental Facilities Corp.,     
 New York, RB, Long Island Water Corp. Project,     
 Series A, AMT (MBIA), 4.90%, 10/01/34  6,000  5,123,160 
New York State Environmental Facilities Corp.,     
 New York, Refunding RB, Spring Valley Water Co.,     
 Series B (AMBAC), 6.15%, 8/01/24  4,400  4,408,052 
    52,183,916 
Total Municipal Bonds in New York    528,769,388 
     Guam — 1.1%     
Transportation — 1.1%     
Guam International Airport Authority, RB, General,     
 Series C, AMT (MBIA):     
     5.25%, 10/01/21  3,700  3,614,789 
     5.25%, 10/01/22  1,050  1,017,313 
Total Municipal Bonds in Guam    4,632,102 
     Puerto Rico — 16.1%     
Housing — 0.7%     
Puerto Rico HFA, RB, Subordinate, Capital Fund     
 Modernization, 5.13%, 12/01/27  3,000  3,047,250 
State — 6.0%     
Commonwealth of Puerto Rico, GO, Refunding (MBIA):     
     Public Improvement, Series A, 5.50%, 7/01/20  1,970  1,984,223 
     Sub-Series C-7, 6.00%, 7/01/27  2,000  2,014,800 
     Sub-Series C-7, 6.00%, 7/01/28  4,000  4,026,840 
Puerto Rico Convention Center Authority, RB, Series A     
 (AMBAC), 5.00%, 7/01/31  3,270  2,824,724 
Puerto Rico Highway & Transportation Authority,     
 Refunding RB, Series CC (FSA):     
     5.50%, 7/01/31  4,000  4,324,920 
     5.25%, 7/01/32  2,000  2,084,180 
Puerto Rico Infrastructure Financing Authority, RB, CAB,     
 Series A (b):     
     (AMBAC), 4.66%, 7/01/34  9,300  1,474,329 
     (AMBAC), 4.67%, 7/01/37  2,200  282,502 
     (FGIC), 4.62%, 7/01/31  10,280  2,033,178 
     (FGIC), 4.66%, 7/01/33  5,500  939,015 
Puerto Rico Public Buildings Authority, Refunding     
 RB, Government Facilities, Series M-3 (MBIA),     
 6.00%, 7/01/28  2,500  2,516,775 
Puerto Rico Sales Tax Financing Corp., RB,     
 First Sub-Series A, 5.75%, 8/01/37  1,000  1,025,010 
    25,530,496 
See Notes to Financial Statements.     

  Par   
Municipal Bonds  (000)  Value 
     Puerto Rico (concluded)     
Transportation — 6.5%     
Puerto Rico Highway & Transportation Authority, RB:     
     Series D, 5.75%, 7/01/12 (a)  $ 10,000  $ 11,204,000 
     Series Y (FSA), 6.25%, 7/01/21  5,025  5,612,322 
     Subordinate (FGIC), 5.25%, 7/01/17  4,800  4,831,920 
Puerto Rico Highway & Transportation Authority,     
 Refunding RB, Series CC (FSA):     
     5.25%, 7/01/33  1,000  1,045,940 
     5.25%, 7/01/34  870  910,838 
     5.25%, 7/01/36  3,750  3,927,263 
    27,532,283 
Utilities — 2.9%     
Puerto Rico Aqueduct & Sewer Authority, RB,     
 Senior Lien, Series A (AGC), 5.13%, 7/01/47  9,950  9,916,270 
Puerto Rico Electric Power Authority, RB, Series NN,     
 5.13%, 7/01/13 (a)  940  1,070,228 
Puerto Rico Electric Power Authority, Refunding RB,     
 Series VV (MBIA), 5.25%, 7/01/30  1,000  1,015,180 
    12,001,678 
Total Municipal Bonds in Puerto Rico    68,111,707 
Total Municipal Bonds — 142.2%    601,513,197 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (d)     
     New York — 25.6%     
County/City/Special District/School District — 7.1%     
City of New York, New York, GO:     
     Series J, 5.00%, 5/15/23  6,800  7,047,316 
     Sub-Series C3, (AGC), 5.75%, 8/15/28  10,000  11,166,000 
Erie County Industrial Development Agency, RB,     
 City of Buffalo Project, (FSA), 5.75%, 5/01/24  4,152  4,224,652 
Sales Tax Asset Receivable Corp., RB, Series A,     
 (AMBAC), 5.00%, 10/15/32  7,000  7,481,705 
    29,919,673 
Education — 1.3%     
New York State Dormitory Authority, RB, New York     
 University, Series A, 5.00%, 7/01/38  5,498  5,584,453 
Transportation — 15.6%     
Metropolitan Transportation Authority, New York, RB,     
 Series A, (MBIA), 5.00%, 11/15/31  7,002  7,111,433 
Metropolitan Transportation Authority, New York,     
 Refunding RB, Series A (FSA):     
     5.00%, 11/15/30  5,010  5,058,346 
     5.75%, 11/15/32  29,000  30,412,880 
Port Authority of New York & New Jersey, RB,     
 37th Series (FSA), 5.13%, 7/15/30  2,500  2,513,500 
Triborough Bridge & Tunnel Authority, New York,     
 Refunding RB (MBIA):     
     5.25%, 11/15/23  12,000  12,469,800 
     5.00%, 11/15/32  8,309  8,441,015 
    66,006,974 
Utilities — 1.6%     
New York City Municipal Water Finance Authority, RB:     
     Fiscal 2009, Series A, 5.75%, 6/15/40  4,004  4,368,368 
     Series FF-2, 5.50%, 6/15/40  2,399  2,568,847 
    6,937,215 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 25.6%    108,448,315 
Total Long-Term Investments     
(Cost — $718,995,429) — 167.8%    709,961,512 

(Percentages shown are based on Net Assets)

ANNUAL REPORT

AUGUST 31, 2009

27


Schedule of Investments (concluded)

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

  Par   
Short-Term Securities  (000)  Value 
     New York — 0.1%     
City of New York, New York, GO, VRDN     
 Sub-Series A-6 (FSA), 0.12%, 9/01/09 (e)  $ 375  $ 375,000 
  Shares   
Money Market Fund — 1.2%     
CMA New York Municipal Money Fund, 0.04% (f)(g)  5,049,821  5,049,821 
Total Short-Term Securities     
(Cost — $5,424,821) — 1.3%    5,424,821 
Total Investments (Cost — $724,420,250*) — 169.1%    715,386,333 
Other Assets Less Liabilities — 2.1%    8,777,149 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (13.6)%    (57,540,781) 
Preferred Shares, at Redemption Value — (57.6)%    (243,639,996) 
Net Assets Applicable to Common Shares — 100.0%    $422,982,705 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 668,196,914 
Gross unrealized appreciation  $ 17,302,426 
Gross unrealized depreciation     (27,402,633) 
Net unrealized depreciation  $ (10,100,207) 

(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) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(c) Variable rate security. Rate shown is 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 collateral 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) 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.
(f) Investments in companies considered to be an affiliate of the Trust, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net   
  Affiliate  Activity  Income 
  CMA New York Municipal Money Fund  $1,580,348  $83,495 
(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 
  market 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.     

Effective September 1, 2008, the Trust adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1 — Short-Term Securities  $ 5,049,821 
Level 2:   
   Long-Term Investments1  709,961,512 
   Short-Term Securities  375,000 
Total Level 2:  710,336,512 
Level 3   
Total  $ 715,386,333 
 1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

(Percentages shown are based on Net Assets)

28 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009   
    Par     
Municipal Bonds    (000)     Value 
     New Jersey — 131.0%         
Corporate — 10.1%         
New Jersey EDA, RB:         
     Continental Airlines Inc. Project, AMT,         
     7.00%, 11/15/30  $ 2,335  $ 2,019,565 
     Disposal, Waste Management New Jersey,         
     Series A, AMT, 5.30%, 6/01/15    1,000    1,006,170 
Port Authority of New York & New Jersey, RB,         
 Continental, Eastern Project, LaGuardia, AMT,         
 9.13%, 12/01/15    120    120,065 
        3,145,800 
County/City/Special District/School District — 13.9%       
City of Vineland New Jersey, GO, Electric Utility,         
 AMT (MBIA):         
     5.30%, 5/15/29    1,000    972,520 
     5.38%, 5/15/32    1,500    1,449,315 
Essex County Improvement Authority, Refunding RB,         
 County Guaranteed, Project Consolidation (MBIA),         
 5.50%, 10/01/29    790    869,363 
Hudson County Improvement Authority, RB, County,         
 Guaranteed, Harrison Parking Facilities Project,         
 Series C (AGC), 5.38%, 1/01/44    800    834,040 
Middlesex County Improvement Authority, RB,         
 Subordinate, Heldrich Center Hotel, Series B,         
 6.25%, 1/01/37    560    112,291 
Salem County Improvement Authority, RB, Finlaw State       
 Office Building (FSA), 5.25%, 8/15/38    100    103,950 
        4,341,479 
Education — 11.5%         
New Jersey Educational Facilities Authority, RB:         
     Georgian Court College Project, Series C,         
     6.50%, 7/01/13 (a)    630    746,128 
     Montclair State University, Series J, 5.25%, 7/01/38  180    181,633 
New Jersey Educational Facilities Authority, Refunding RB:       
     College of New Jersey, Series D (FSA),         
     5.00%, 7/01/35    1,010    1,039,734 
     Fairleigh Dickinson, Series C, 6.00%, 7/01/20    1,000    1,010,330 
     Georgian Court University, Series D,         
     5.00%, 7/01/33    150    135,489 
     University of Medicine & Dentistry, Series B,         
     7.50%, 12/01/32    450    495,378 
        3,608,692 
Health — 36.9%         
New Jersey EDA, RB, First Mortgage, Lions Gate Project,       
 Series A:         
     5.75%, 1/01/25    150    126,060 
     5.88%, 1/01/37    265    200,830 
New Jersey EDA, Refunding RB:         
     First Mortgage, Winchester, Series A,         
     5.80%, 11/01/31    2,500    2,263,175 
     Seabrook Village Inc. Facilities, 5.25%, 11/15/26  470    367,526 
New Jersey Health Care Facilities Financing Authority, RB:       
     Atlantic City Medical, 5.75%, 7/01/25    1,110    1,127,549 
     Health System, Catholic Health East, Series A,         
     5.38%, 11/15/12 (a)    2,000    2,249,320 
     Hospital Asset Transformation Program, Series A,         
     5.25%, 10/01/38    500    505,375 
     Meridian Health, Series I (AGC), 5.00%, 7/01/38  250    253,190 
     South Jersey Hospital, 6.00%, 7/01/12 (a)    2,500    2,825,025 
     South Jersey Hospital, 5.00%, 7/01/46    500    436,335 
     Virtua Health (AGC), 5.50%, 7/01/38    400    413,160 

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

         Par   
Municipal Bonds  (000)  Value 
     New Jersey (concluded)     
Health (concluded)     
New Jersey Health Care Facilities Financing Authority,     
 RB, Saint Barnabas Health, Series B (b):     
     5.90%, 7/01/30  $ 500  $ 86,695 
     5.69%, 7/01/36  3,600  351,576 
     5.76%, 7/01/37  3,600  321,516 
    11,527,332 
Housing — 7.8%     
New Jersey State Housing & Mortgage Finance     
 Agency, RB:     
     S/F Housing, Series T, AMT, 4.70%, 10/01/37  250  219,577 
     Series AA, 6.38%, 10/01/28  1,000  1,090,580 
     Series AA, 6.50%, 10/01/38  450  483,471 
Newark Housing Authority, RB, South Ward Police     
 Facility (AGC):     
     5.75%, 12/01/30  180  186,469 
     6.75%, 12/01/38  405  443,884 
    2,423,981 
State — 30.4%     
Garden State Preservation Trust, RB, CAB, Series B     
 (FSA), 5.24%, 11/01/27 (b)  4,000  1,652,720 
New Jersey EDA, RB:     
     Cigarette Tax (Radian), 5.75%, 6/15/34  2,000  1,823,120 
     Newark Downtown District Management Corp.,     
     5.13%, 6/15/37  250  191,172 
     School Facilities Construction, Series Z (AGC),     
     5.50%, 12/15/34  1,000  1,067,490 
     School Facilities Construction, Series Z (AGC),     
     6.00%, 12/15/34  1,000  1,108,930 
New Jersey EDA, Refunding RB, School Facilities     
 Construction, Series AA, 5.50%, 12/15/29  500  535,520 
New Jersey EDA, Special Assessment, Refunding RB,     
 Kapkowski Road Landfill Project, 6.50%, 4/01/28  2,250  1,836,675 
New Jersey Transportation Trust Fund Authority,     
 New Jersey, RB, Transportation System:     
     CAB, Series C (FSA), 4.84%, 12/15/32 (b)  1,250  310,950 
     Series A, 6.00%, 12/15/38  500  543,720 
     Series A (AGC), 5.63%, 12/15/28  200  216,126 
State of New Jersey, COP, Equipment Lease Purchase,     
 Series A, 5.25%, 6/15/28  200  204,128 
    9,490,551 
Tobacco — 1.1%     
Tobacco Settlement Financing Corp., New Jersey, RB,     
 Series 1A, 4.50%, 6/01/23  390  358,348 
Transportation — 18.8%     
New Jersey State Turnpike Authority, RB, Series E,     
 5.25%, 1/01/40  1,000  1,031,950 
New Jersey Transportation Trust Fund Authority,     
 New Jersey, RB, Transportation System, Series A,     
 5.88%, 12/15/38  460  495,958 
Port Authority of New York & New Jersey, RB,     
 Consolidated:     
     125th Series (FSA), 5.00%, 4/15/32  1,500  1,535,745 
     AMT, 126th Series, (MBIA), 5.25%, 5/15/37  2,250  2,255,400 
     AMT, 152nd Series, 5.75%, 11/01/30  525  551,250 
    5,870,303 
Utilities — 0.5%     
Rahway Valley Sewerage Authority, RB, CAB, Series A     
 (MBIA), 4.39%, 9/01/33 (b)  650  166,817 
Total Municipal Bonds in New Jersey    40,933,303 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

29


Schedule of Investments (concluded)

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

  Par   
Municipal Bonds  (000)           Value 
     Multi-State — 7.0%     
Housing — 7.0%     
Charter Mac Equity Issuer Trust,     
 7.20%, 11/15/14 (c)(d)  $ 2,000  $ 2,164,120 
Total Municipal Bonds in Multi-State    2,164,120 
     Puerto Rico — 17.8%     
Housing — 2.5%     
Puerto Rico HFA, RB, Subordinate, Capital Fund     
 Modernization, 5.13%, 12/01/27  765  777,048 
State — 5.5%     
Puerto Rico Infrastructure Financing Authority, RB, CAB,     
 Series A (AMBAC) (b):     
     4.36%, 7/01/37  1,750  224,718 
     4.53%, 7/01/43  1,000  83,310 
Puerto Rico Public Buildings Authority, Refunding RB,     
 Government Facilities, Series M-3 (MBIA),     
 6.00%, 7/01/27  425  428,145 
Puerto Rico Sales Tax Financing Corp., RB,     
 First Sub-Series A, 5.75%, 8/01/37  970  994,260 
    1,730,433 
Transportation — 3.5%     
Puerto Rico Highway & Transportation Authority,     
 Refunding RB, Series CC (AGC), 5.50%, 7/01/31  1,000  1,081,230 
Utilities — 6.3%     
Puerto Rico Electric Power Authority, RB, Series II,     
 5.25%, 7/01/12 (a)  1,750  1,972,145 
Total Municipal Bonds in Puerto Rico    5,560,856 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (e)     
     New Jersey — 2.0%     
Transportation — 2.0%     
Port Authority of New York & New Jersey,     
 Refunding RB, Consolidated, 152nd Series, AMT,     
 5.25%, 11/01/35  630  634,533 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 2.0%    634,533 
Total Long Term Investments     
(Cost — $50,831,993) — 157.8%    49,292,812 
Short-Term Securities  Shares   
CMA New Jersey Municipal Money Fund, 0.04% (f)(g)  650,601  650,601 
Total Short-Term Securities     
(Cost — $650,601) — 2.1%    650,601 
Total Investments (Cost — $51,482,594*) — 159.9%    49,943,413 
Other Assets Less Liabilities — 1.6%    493,088 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (1.4)%    (420,116) 
Preferred Shares, at Redemption Value — (60.1)%    (18,776,919) 
Net Assets Applicable to Common Shares — 100.0%    $ 31,239,466 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 50,923,659 
Gross unrealized appreciation  $ 2,291,032 
Gross unrealized depreciation  (3,691,061) 
Net unrealized depreciation  $ (1,400,029) 

(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) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(c) 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.
(d) 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, and is subject to mandatory redemption at maturity.
(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 collateral 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, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

      Net   
  Affiliate  Activity  Income 
  CMA New Jersey Municipal Money Fund  $(177,606)  $31,675 
(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 
  market 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.     
  Effective September 1, 2008 the Trust adopted Financial Accounting Standards 
  Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure- 
  ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a 
  framework for measuring fair values and requires additional disclosures about the 
  use of 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 securities 
    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 methodology used for valuing securities are not necessarily an indica- 
  tion 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, 2009 in determin- 
  ing the fair valuation of the Trust’s investments:     
        Investments in 
  Valuation Inputs    Securities 
        Assets 
  Level 1 — Short-Term Securities  $ 650,601 
  Level 2 — Long-Term Investments1    49,292,812 
  Level 3     
  Total  $ 49,943,413 
    1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

30 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

BlackRock New York Insured Municipal Income Trust (BSE)

    Par   
Municipal Bonds    (000)  Value 
     New York — 116.6%       
Corporate — 1.4%       
New York Liberty Development Corp., RB, Goldman       
 Sachs Headquarters, 5.25%, 10/01/35  $ 250  $ 243,410 
New York State Energy Research & Development       
 Authority, RB, Lilco Project, Series A (MBIA),       
 5.15%, 3/01/16    1,000  1,002,960 
      1,246,370 
County/City/Special District/School District — 28.0%     
City of New York New York, GO, Sub-Series J-1,       
 4.50%, 5/15/30    250  247,328 
Erie County Industrial Development Agency, RB,       
 City School District Buffalo Project, Series A (FSA),       
 5.75%, 5/01/25    1,000  1,074,860 
Haverstraw-Stony Point Central School District,       
 New York, GO (FSA), 3.00%, 10/15/26    910  726,617 
Hudson Yards Infrastructure Corp., RB, Series A (FGIC),     
 5.00%, 2/15/47    3,000  2,676,810 
New York City Industrial Development Agency, RB PILOT:     
     Capital Appreciation, Yankee Stadium (AGC),       
     6.46%, 3/01/39 (a)    1,000  168,440 
     Queens Baseball Stadium, (AGC),       
     6.38%, 1/01/39    150  165,928 
     Queens Baseball Stadium, (AMBAC),       
     5.00%, 1/01/46    3,225  2,826,874 
     Yankee Stadium, (MBIA), 4.75%, 3/01/46    1,000  849,250 
New York City Transitional Finance Authority, RB:       
     Future Tax, Series B (AMBAC), 5.00%, 5/01/30    3,265  3,325,011 
     Series S-2 (FSA), 5.00%, 1/15/37    850  853,595 
New York Convention Center Operating Corp., RB,       
 Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44  6,175  5,587,449 
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC),     
 5.00%, 10/15/32    6,000  6,171,540 
      24,673,702 
Education — 29.9%       
Haverstraw-Stony Point Central School District,       
 New York, GO (FSA), 3.00%, 10/15/27    140  109,432 
Herkimer County Industrial Development Agency,       
 New York, RB, College Foundation Inc. Student       
 Housing, 6.25%, 8/01/34    1,000  860,870 
Madison County Industrial Development Agency,       
 New York, RB, Colgate University Project, Series A       
 (AMBAC), 5.00%, 7/01/30    1,000  1,024,310 
New York City Industrial Development Agency, RB,       
 Lycee Francais De NY Project, Series A (ACA),       
 5.38%, 6/01/23    2,500  2,304,250 
New York City Transitional Finance Authority, RB,       
 Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33    1,000  1,011,130 
New York City Trust for Cultural Resources, Refunding RB,     
 Series American Museum Natural History, Series A       
 (MBIA), 5.00%, 7/01/44    2,000  2,009,240 
New York State Dormitory Authority, RB:       
     Insured, Brooklyn Law School, Series B (Syncora),     
     5.13%, 7/01/30    4,000  3,739,800 
     Insured, Fit Student Housing Corp. (FGIC),       
     5.13%, 7/01/14 (b)    2,500  2,847,025 
     Insured, New York University, Series 2 (AMBAC),       
     5.00%, 7/01/41    7,000  7,022,610 
     Mount Sinai School Medical New York University       
     (MBIA), 5.00%, 7/01/35    2,500  2,478,325 
     Saints Joachim & Anne Residence, 5.25%, 7/01/27  3,000  2,948,640 
      26,355,632 

    Par   
Municipal Bonds    (000)  Value 
     New York (concluded)       
Health — 21.9%       
New York State Dormitory Authority, RB:       
     FHA, Hospital, NY & Presbyterian (AMBAC),       
     5.00%, 8/01/32  $ 4,000  $ 4,001,480 
     FHA, Insured Mortgage, Saint Barnabas, Series A       
     (AMBAC), 5.00%, 2/01/31    5,000  5,048,400 
     FHA, NY & Presbyterian Hospital (FSA),       
     5.25%, 2/15/31    500  512,240 
     Hospital, FHA, Insured Mortgage, Lutheran Medical     
     (MBIA), 5.00%, 8/01/31    4,500  4,523,625 
     Hudson Valley Hospital (FSA), 5.00%, 8/15/36    2,000  2,072,980 
     North Shore Long Island Jewish Health System,       
     Series A, 5.50%, 5/01/37    350  343,627 
     Saint Luke’s Roosevelt Hospital, FHA,       
     4.90%, 8/15/31    750  747,982 
     Winthrop University Hospital Association, Series A       
     (AMBAC), 5.25%, 7/01/31    2,000  2,023,960 
      19,274,294 
State — 9.6%       
New York State Dormitory Authority, RB:       
     Education, Series B, 5.75%, 3/15/36    600  657,636 
     Master Boces Program Lease (AGC),       
     4.75%, 8/15/24    250  255,368 
     Mental Health Services Facilities Improvement,       
     Series A (FSA), 5.00%, 2/15/22    1,000  1,056,430 
School District Financing Program:       
     Series A (FSA), 5.00%, 10/01/35    1,000  1,010,870 
     Series A (MBIA), 5.00%, 4/01/31    2,000  2,003,880 
     Series D (MBIA), 5.00%, 10/01/30    3,500  3,513,720 
      8,497,904 
Transportation — 18.7%       
Metropolitan Transportation Authority, RB, Series 2008C,     
 6.50%, 11/15/28    750  845,692 
Metropolitan Transportation Authority, Refunding RB:       
     Insured, Series A (MBIA), 5.25%, 11/15/31    4,250  4,289,525 
     Series A (AMBAC), 5.00%, 7/01/30    4,600  4,639,560 
     Transportation, Series E (MBIA),       
     5.25%, 11/15/31    2,660  2,684,738 
New York State Thruway Authority, RB, Series H (FSA),       
 5.00%, 1/01/37    4,000  4,035,000 
      16,494,515 
Utilities — 7.1%       
Long Island Power Authority, RB:       
     General, Series A (AGC), 6.00%, 5/01/33    2,000  2,203,240 
     General, Series C, (CIFG), 5.25%, 9/01/29    1,000  1,054,800 
     General, Series F (MBIA), 4.25%, 5/01/33    1,415  1,196,609 
     Series A (AGC), 5.75%, 4/01/39    1,690  1,831,014 
      6,285,663 
Total Municipal Bonds in New York      102,828,080 
     Puerto Rico — 16.4%       
Education — 4.1%       
Puerto Rico Industrial Tourist Educational Medical &       
 Environmental Control Facilities Financing Authority,       
 RB, University Plaza Project, Series A (MBIA),       
 5.00%, 7/01/33    1,000  902,070 
Puerto Rico Industrial Tourist Educational Medical &       
 Environmental Control Facilities Financing Authority,       
 Refunding RB, Polytechnic University, Series A (ACA),     
 5.00%, 8/01/32    4,000  2,717,000 
      3,619,070 

See Notes to Financial Statements.

(Percentages shown are based on Net Assets)

ANNUAL REPORT

AUGUST 31, 2009

31


Schedule of Investments (continued)

BlackRock New York Insured Municipal Income Trust (BSE)

  Par   
Municipal Bonds  (000)  Value 
     Puerto Rico (concluded)     
State — 5.3%     
Commonwealth of Puerto Rico, GO, Refunding,     
 Sub-Series C-7 (MBIA), 6.00%, 7/01/27  $ 1,000  $ 1,007,400 
Puerto Rico Highway & Transportation Authority,     
 Refunding RB, Series CC (FSA):     
     5.50%, 7/01/31  1,000  1,081,230 
     5.25%, 7/01/32  1,000  1,042,090 
Puerto Rico Public Buildings Authority, Refunding RB,     
 Government Facilities, M-3 (MBIA), 6.00%, 7/01/28  500  503,355 
Puerto Rico Sales Tax Financing Corp., RB,     
 First Sub-Series A, 5.75%, 8/01/37  1,000  1,025,010 
    4,659,085 
Transportation — 2.5%     
Puerto Rico Highway & Transportation Authority, RB,     
 Series Y (FSA), 6.25%, 7/01/21  2,000  2,233,760 
Utilities — 4.5%     
Puerto Rico Aqueduct & Sewer Authority, RB,     
 Senior Lien, Series A (AGC), 5.13%, 7/01/47  1,925  1,918,474 
Puerto Rico Electric Power Authority, Refunding RB,     
 Series VV (MBIA), 5.25%, 7/01/30  2,000  2,030,360 
    3,948,834 
Total Municipal Bonds in Puerto Rico    14,460,749 
Total Municipal Bonds    117,288,829 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (c)     
     New York — 20.2%     
County/City/Special District/School District — 1.3%     
City of New York, New York, GO, Sub-Series C3, (AGC),     
 5.75%, 8/15/28  1,000  1,116,600 
Transportation — 17.8%     
Metropolitan Transportation Authority, New York,     
 Refunding RB, Series A (FSA), 5.00%, 11/15/30  6,080  6,138,672 
Triborough Bridge & Tunnel Authority, New York,     
 Refunding RB, (MBIA), 5.00%, 11/15/32  9,404  9,553,280 
    15,691,952 
Utilities — 1.1%     
New York City Municipal Water Finance Authority, RB,     
     Fiscal 2009, Series A, 5.75%, 6/15/40  495  539,911 
     Series FF-2, 5.50%, 6/15/40  405  433,493 
    973,404 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts    17,781,956 
Total Long-Term Investment     
(Cost — $136,552,924) — 153.2%    135,070,785 

  Par   
Short-Term Securities  (000)  Value 
     New York — 0.0%     
City of New York New York, GO, Series H,     
Sub-Series H-3 (FSA), VRDN, 0.12%, 9/01/09 (d)  $ 50  $ 50,000 
  Shares   
Money Market Funds — 3.8%     
CMA New York Municipal Money Fund, 0.04% (e)(f)  3,311,074  3,311,074 
Total Short-Term Securities     
(Cost — $3,361,074) — 3.8%    3,361,074 
Total Investments (Cost — $139,913,998*) — 157.0%    138,431,859 
Other Assets Less Liabilities — 0.8%    715,621 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (11.8)%    (10,428,962) 
Preferred Shares, at Redemption Value — (46.0)%    (40,577,165) 
Net Assets Applicable to Common Shares — 100.0%    $ 88,141,353 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 129,636,640 
Gross unrealized appreciation  $ 2,650,886 
Gross unrealized depreciation  (4,264,171) 
Net unrealized depreciation  $ (1,613,285) 

(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 underlying bonds transferred to a tender option bond trust
in exchange for which the Trust acquired residual interest certificates. These
securities serve as collateral 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, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net   
  Affiliate  Activity  Income 
  CMA New York Municipal Money Fund  $3,310,774  $12,023 
(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 
  market 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.     

See Notes to Financial Statements.

(Percentages shown are based on Net Assets)

32 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments (concluded)

BlackRock New York Insured Municipal Income Trust (BSE)

Effective September 1, 2008, the Trust adopt Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework
for measuring fair values and requires additional disclosures about the use of fair
value measurements. Various inputs are used in determining the fair value of invest-
ments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1 — Short-Term Securities  $ 3,311,074 
Level 2:   
   Long-Term Investments1  135,070,785 
   Short-Term Securities  50,000 
Total Level 2:  135,120,785 
Level 3   
Total  $ 138,431,859 

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

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

33


Schedule of Investments August 31, 2009

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

    Par   
Municipal Bonds    (000)           Value 
     New York — 122.3%       
Corporate — 12.1%       
Essex County Industrial Development Agency, New York,     
 RB, International Paper Co. Project, Series A, AMT,       
 6.63%, 9/01/32  $ 100  $ 97,300 
New York City Industrial Development Agency, RB,       
 American Airlines, JFK International Airport, AMT:       
     7.63%, 8/01/25    750  642,203 
     7.75%, 8/01/31    1,000  849,410 
New York Liberty Development Corp., RB, Goldman       
 Sachs Headquarters, 5.25%, 10/01/35    500  486,820 
Port Authority of New York & New Jersey, RB,       
 Continental, Eastern Project, LaGuardia, AMT,       
 9.13%, 12/01/15    2,340  2,341,264 
Suffolk County Industrial Development Agency,       
 New York, RB, KeySpan, Port Jefferson, AMT,       
 5.25%, 6/01/27    500  458,315 
      4,875,312 
County/City/Special District/School District — 21.4%     
City of New York New York, GO:       
     Series A-1, 4.75%, 8/15/25    500  515,815 
     Series D, 5.38%, 6/01/32    2,040  2,078,658 
     Sub-Series G-1, 6.25%, 12/15/31    250  282,087 
     Sub-Series I-1, 5.38%, 4/01/36    450  473,557 
     Sub-Series J-1, 4.50%, 5/15/30    125  123,664 
Hudson Yards Infrastructure Corp., RB, Series A:       
     5.00%, 2/15/47    200  178,454 
     (FGIC), 5.00%, 2/15/47    500  446,135 
     (MBIA), 4.50%, 2/15/47    1,000  846,280 
New York City Health & Hospital Corp., RB, Health       
 System, Series A, 5.38%, 2/15/26    1,100  1,114,971 
New York City Industrial Development Agency, PILOT, RB:     
     Queens Baseball Stadium (AGC), 6.38%, 1/01/39  100  110,619 
     Queens Baseball Stadium (AMBAC),       
     5.00%, 1/01/39    250  223,877 
     Queens Baseball Stadium (AMBAC),       
     5.00%, 1/01/46    150  131,482 
     Yankee Stadium (FGIC), 5.00%, 3/01/46    500  438,165 
New York City Transitional Finance Authority, RB:       
     Fiscal 2008, Series S-1, 4.50%, 1/15/38    250  232,218 
     Fiscal 2009, Series S-3, 5.25%, 1/15/39    500  511,485 
New York Convention Center Operating Corp., RB,       
 Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44  1,000  904,850 
      8,612,317 
Education — 19.4%       
Albany Industrial Development Agency, RB, New       
 Covenant Charter School Project, Series A:       
     7.00%, 5/01/25    200  135,378 
     7.00%, 5/01/35    130  81,643 
Dutchess County Industrial Development Agency,       
 New York, RB:       
     Bard College Civic Facility, Series A-2,       
     4.50%, 8/01/36    500  376,190 
     Vassar College Project, 5.35%, 9/01/40 (a)    1,000  1,096,680 
New York City Industrial Development Agency, RB (ACA):     
     Lycee Francais De NY Project, Series A,       
     5.50%, 6/01/15    250  250,492 
     Polytechnic University Project, 5.25%, 11/01/37  250  200,340 
New York City Trust for Cultural Resources, RB,       
 Juilliard School, Series A, 5.00%, 1/01/39    550  568,618 
New York Liberty Development Corp., RB,       
 National Sports Museum Project, Series A,       
 6.13%, 2/15/19 (b)(c)    385  385 
See Notes to Financial Statements.       

  Par   
Municipal Bonds  (000)           Value 
     New York (continued)     
Education (concluded)     
New York State Dormitory Authority, RB:     
     5.83%, 7/01/39 (d)  $ 175  $ 135,231 
     City University, 4th, Series A, 5.25%, 7/01/31 (a)  1,215  1,314,120 
     Insured, Iona College (Syncora), 5.13%, 7/01/32  2,500  2,435,800 
     Mount Sinai School Medical New York University     
     (MBIA), 5.00%, 7/01/35  150  148,700 
     Rochester Institute Technology, Series A,     
     6.00%, 7/01/33  325  346,759 
     Teachers College, 5.50%, 3/01/39  350  360,360 
     University of Rochester, Series A, 5.13%, 7/01/39  215  218,556 
New York State Dormitory Authority, Refunding RB,     
 Brooklyn Law School, 5.75%, 7/01/33  125  126,110 
    7,795,362 
Health — 5.1%     
Genesee County Industrial Development Agency,     
 New York, RB, United Memorial Medical Center     
 Project, 5.00%, 12/01/27  150  102,367 
New York State Dormitory Authority, RB:     
     FHA, NY & Presbyterian Hospital (FSA),     
     5.25%, 2/15/31  425  435,404 
     Insured, New York State Association for Retarded     
     Children Inc., Series B (AMBAC), 6.00%, 7/01/32  185  190,803 
     North Shore Long Island Jewish Health System,     
     Series A, 5.50%, 5/01/37  450  441,805 
     NYU Hospital Center, Series B, 5.63%, 7/01/37  260  239,626 
New York State Dormitory Authority, Refunding RB,     
 North Shore Long Island Jewish Health System,     
 Series E, 5.50%, 5/01/33  250  246,077 
Saratoga County Industrial Development Agency,     
 New York, RB, Saratoga Hospital Project, Series B,     
 5.25%, 12/01/32  200  176,970 
Suffolk County Industrial Development Agency,     
 New York, Refunding RB, Jefferson’s Ferry Project,     
 5.00%, 11/01/28  260  217,836 
    2,050,888 
Housing — 7.3%     
New York City Housing Development Corp., RB,     
 Series A, AMT, 5.50%, 11/01/34  2,500  2,479,600 
New York State HFA, RB, Highland Ave Senior     
 Apartments, Series A, AMT, 5.00%, 2/15/39  500  437,470 
    2,917,070 
State — 20.5%     
New York State Dormitory Authority, RB:     
     Education, Series B, 5.75%, 3/15/36  300  328,818 
     Mental Health Services Facilities Improvement,     
     Series A (FSA), 5.00%, 2/15/22  335  353,904 
     Municipal Health Facilities, Lease, Sub-Series 2-4,     
     4.75%, 1/15/30  500  491,640 
New York State Urban Development Corp., RB,     
 Personal Income Tax:     
     Series B, 5.00%, 3/15/37  1,000  1,014,400 
     State Facilities, Series A, 5.25%, 3/15/32 (a)  5,000  5,541,000 
State of New York, GO, Series A, 5.00%, 2/15/39  500  514,410 
    8,244,172 
Tobacco — 8.7%     
New York Counties Tobacco Trust III, RB, Tobacco     
 Settlement Pass Thru, Turbo, 6.00%, 6/01/43  1,445  1,223,713 
TSASC, Inc., New York, RB,     
 Tobacco Settlement Asset Backed, Series 1,     
 5.75%, 7/15/32 (a)  2,000  2,260,260 
    3,483,973 

34 ANNUAL REPORT

AUGUST 31, 2009


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)       
Transportation — 15.7%       
Metropolitan Transportation Authority, RB:       
     Series 2008C, 6.50%, 11/15/28  $ 500  $ 563,795 
     Series A, 5.63%, 11/15/39    250  261,827 
     Series B, 4.50%, 11/15/37    250  229,425 
Metropolitan Transportation Authority, Refunding RB,       
 Series A, 5.13%, 11/15/31    2,500  2,514,100 
Port Authority of New York & New Jersey, RB,       
 Consolidated, 126th Series, AMT (MBIA),       
 5.25%, 5/15/37    2,750  2,756,600 
      6,325,747 
Utilities — 12.1%       
Long Island Power Authority, RB:       
     General, Series C (CIFG), 5.25%, 9/01/29    500  527,400 
     Series A, 5.50%, 4/01/24    250  268,070 
     Series A, 6.25%, 4/01/33    100  112,584 
New York City Municipal Water Finance Authority, RB:       
     2nd General Resolution (MBIA), 4.50%, 6/15/37  250  237,438 
     Series A (FGIC), 5.25%, 6/15/33 (a)    2,500  2,701,800 
New York State Environmental Facilities Corp.,       
 New York, RB, Revolving Funds, New York City       
 Municipal Water Project, D, 5.13%, 6/15/31    1,000  1,019,560 
      4,866,852 
Total Municipal Bonds in New York      49,171,693 
     Guam — 2.3%       
County/City/Special District/School District — 0.6%     
Territory of Guam, RB, Section 30, Series A,       
 5.75%, 12/01/34    230  231,392 
State — 0.5%       
Territory of Guam, GO, Series A, 7.00%, 11/15/39    225  225,617 
Tobacco — 0.4%       
Guam Economic Development & Commerce       
 Authority, RB, Tobacco Settlement Asset Backed,       
 5.63%, 6/01/47    200  151,500 
Utilities — 0.8%       
Guam Government Waterworks Authority, RB, Water,       
 5.88%, 7/01/35    350  310,040 
Total Municipal Bonds in Guam      918,549 
     Multi-State — 6.7%       
Housing — 6.7%       
Charter Mac Equity Issuer Trust,       
 7.20%, 11/15/14 (e)(f)    2,500  2,705,150 
Total Municipal Bonds in Multi-State      2,705,150 
     Puerto Rico — 15.2%       
State — 12.2%       
Commonwealth of Puerto Rico, GO, Public Improvement,     
 Series A, 5.13%, 7/01/31    1,825  1,648,340 
Puerto Rico Infrastructure Financing Authority, RB,       
 CAB, Series A, (AMBAC) (g):       
     4.36%, 7/01/37    2,000  256,820 
     5.00%, 7/01/44    2,000  154,820 
Puerto Rico Public Buildings Authority, RB, Government     
 Facilities, Series D, 5.25%, 7/01/27    720  658,354 
Puerto Rico Public Buildings Authority, RB, Government     
 Facilities, Series D, 5.25%, 7/01/27 (a)    1,980  2,185,168 
      4,903,502 
See Notes to Financial Statements.       

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico (concluded)     
Tobacco — 0.9%     
Children’s Trust Fund, RB, Asset Backed Bonds,     
 5.63%, 5/15/43  $ 500  $ 381,485 
Transportation — 2.1%     
Puerto Rico Highway & Transportation Authority, RB,     
 Series D, 5.25%, 7/01/38 (a)  750  829,920 
Total Municipal Bonds in Puerto Rico    6,114,907 
Total Municipal Bonds — 146.5%    58,910,299 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (h)     
New York — 7.4%     
Housing — 6.3%     
New York Mortgage Agency, Refunding RB, Series 101,     
 AMT, 5.40%, 4/01/32  2,557  2,527,516 
Utilities — 1.1%     
New York City Municipal Water Finance Authority, RB,     
 Fiscal 2009, Series A, 5.75%, 6/15/40  405  441,745 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts    2,969,261 
Total Long-Term Investments     
(Cost — $61,513,885) — 153.9%    61,879,560 
Short-Term Securities  Shares   
CMA New York Municipal Money Fund, 0.04% (i)(j)  1,137,340  1,137,340 
Total Short-Term Securities     
(Cost — $1,137,340) — 2.8%    1,137,340 
Total Investments (Cost — $62,651,225*) — 156.7%    63,016,900 
Other Assets Less Liabilities — 2.2%    866,221 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (3.9)%    (1,551,977) 
Preferred Shares, at Redemption Value — (55.0)%    (22,126,939) 
Net Assets Applicable to Common Shares — 100.0%    $ 40,204,205 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 61,014,218 
Gross unrealized appreciation  $ 2,907,460 
Gross unrealized depreciation  (2,453,893) 
Net unrealized appreciation  $ 453,567 

(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) Non-income producing security.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.
(d) 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.
(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.

ANNUAL REPORT

AUGUST 31, 2009

35


Schedule of Investments (concluded)

BlackRock New York Municipal Bond Trust (BQH)

(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 govern-
ments, or their respective agencies or authorities. The security is subject to remarket-
ing prior to its stated maturity, and is subject to mandatory redemption at maturity.
(g) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(h) Securities represent underlying bonds transferred to a tender option bond trust
in exchange for which the Trust acquired residual interest certificates. These securi-
ties serve as collateral in a financing transaction. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option
bond trusts.
(i) Investments in companies considered to be an affiliate of the Trust, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net   
  Affiliate  Activity  Income 
  CMA New York Municipal Money Fund  $8,746  $2,348 
(j) 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 definition may not apply for purposes of this report which may combine sector 
  sub-classifications for reporting ease.     

Effective September 1, 2008, the Trust adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1 — Short-Term Investments  $ 1,137,340 
Level 2 — Long-Term Investments1  61,879,560 
Level 3   
Total  $ 63,016,900 
 1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

36 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments August 31, 2009

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

    Par   
Municipal Bonds    (000)  Value 
     New York — 148.3%       
Corporate — 22.2%       
Essex County Industrial Development Agency, New York,     
 RB, International Paper Co. Project, Series A, AMT:       
     5.50%, 10/01/26  $ 625  $ 545,881 
     6.63%, 9/01/32    200  194,600 
New York City Industrial Development Agency, RB:       
     American Airlines, JFK International Airport, AMT,       
     7.63%, 8/01/25    1,600  1,370,032 
     American Airlines, JFK International Airport, AMT,       
     7.75%, 8/01/31    1,500  1,274,115 
     Liberty, IAC/Interactive Corp., 5.00%, 9/01/35    1,000  626,850 
New York Liberty Development Corp., RB, Goldman       
 Sachs Headquarters, 5.25%, 10/01/35    250  243,410 
New York State Energy Research & Development       
 Authority, RB, AMT, 4.70%, 6/01/36    5,500  5,503,025 
Port Authority of New York & New Jersey, RB,       
 Continental, Eastern Project, LaGuardia, AMT,       
 9.13%, 12/01/15    3,310  3,311,787 
Suffolk County Industrial Development Agency,       
 New York, RB, KeySpan, Port Jefferson, AMT,       
 5.25%, 6/01/27    2,500  2,291,575 
      15,361,275 
County/City/Special District/School District — 35.7%     
City of New York New York, GO:       
     Series A-1, 4.75%, 8/15/25    500  515,815 
     Series B, 5.75%, 12/01/11 (a)    3,000  3,331,380 
     Sub-Series G-1, 6.25%, 12/15/31    250  282,087 
     Sub-Series I-1, 5.38%, 4/01/36    450  473,557 
Hudson Yards Infrastructure Corp., RB, Series A,       
 5.00%, 2/15/47    350  312,294 
New York City Industrial Development Agency, RB,       
 PILOT, Queens Baseball Stadium:       
     (AGC), 6.38%, 1/01/39    100  110,619 
     (AMBAC), 5.00%, 1/01/39    500  447,755 
     (AMBAC), 5.00%, 1/01/46    2,050  1,796,927 
New York City Transit Authority, Metropolitan       
 Transportation Authority, Triborough Bridge & Tunnel,       
 COP, Series A (AMBAC), 5.25%, 1/01/10 (a)    5,000  5,131,450 
New York City Transitional Finance Authority, RB:       
     Fiscal 2008, Series S-1, 4.50%, 1/15/38    500  464,435 
     Fiscal 2009, Series S-3, 5.25%, 1/15/39    1,300  1,329,861 
     Future Tax Secured, Series B, 5.00%, 11/01/27    5,000  5,139,550 
     Series S-2 (MBIA), 4.50%, 1/15/31    2,500  2,371,475 
     Series S-2 (MBIA), 4.25%, 1/15/34    250  219,708 
New York Convention Center Operating Corp., RB,       
 Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35  3,000  2,812,590 
      24,739,503 
Education — 25.3%       
Albany Industrial Development Agency, RB,       
 New Covenant Charter School Project, Series A:       
     7.00%, 5/01/25    345  233,527 
     7.00%, 5/01/35    220  138,164 
Dutchess County Industrial Development Agency,       
 New York, RB:       
     Bard College Civic Facility, Series A-2,       
     4.50%, 8/01/36    755  568,047 
     Vassar College Project, 5.35%, 8/01/11 (a)    4,000  4,386,720 
Geneva Industrial Development Agency, New York,       
 RB, Hobart & William Smith Project, Series A,       
 5.38%, 2/01/33    3,250  3,256,370 
Herkimer County Industrial Development Agency,       
 New York, RB, College Foundation Inc. Student       
 Housing, 6.25%, 8/01/34    385  331,435 
See Notes to Financial Statements.       

  Par   
Municipal Bonds  (000)           Value 
     New York (continued)     
Education — 25.3% (continued)     
New York City Industrial Development Agency, RB (ACA):     
     Lycee Francais De NY Project, Series A,     
     5.38%, 6/01/23  $ 1,500  $ 1,382,550 
     Polytechnic University Project, 5.25%, 11/01/37  460  368,626 
New York City Trust for Cultural Resources, RB,     
 Juilliard School, Series A, 5.00%, 1/01/39  1,050  1,085,542 
New York Liberty Development Corp., RB,     
 National Sports Museum Project, Series A,     
 6.13%, 2/15/19 (b)(c)  675  675 
New York State Dormitory Authority, RB:     
     5.83%, 7/01/39 (d)  225  173,869 
     Insured, Brooklyn Law School, Series B (Syncora),     
     5.13%, 7/01/30  2,000  1,869,900 
     Insured, New School University (MBIA),     
     5.00%, 7/01/31  1,425  1,426,639 
     Mount Sinai School Medical New York University     
     (MBIA), 5.00%, 7/01/35  500  495,665 
     Rochester Institute of Technology, Series A,     
     6.00%, 7/01/33  625  666,844 
     Teachers College, 5.50%, 3/01/39  650  669,240 
     University of Rochester, Series A, 5.13%, 7/01/39  250  254,135 
New York State Dormitory Authority, Refunding RB,     
 Brooklyn Law School, 5.75%, 7/01/33  250  252,220 
    17,560,168 
Health — 15.8%     
Clarence Industrial Development Agency, RB, Bristol     
 Village Project (GNMA), 6.00%, 1/20/44  1,690  1,760,253 
Genesee County Industrial Development Agency,     
 New York, RB, United Memorial Medical Center     
 Project, 5.00%, 12/01/27  250  170,612 
New York City Industrial Development Agency, RB,     
 Eger Harbor Project, Series A (GNMA):     
     4.95%, 11/20/32  980  967,534 
     5.88%, 5/20/44  975  1,019,070 
New York State Dormitory Authority, RB:     
     FHA, Insured Mortgage, Saint Barnabas, Series A     
     (AMBAC), 5.00%, 2/01/31  1,500  1,514,520 
     FHA, NY & Presbyterian Hospital (FSA),     
     5.25%, 2/15/31  425  435,404 
     Kateri Residence, 5.00%, 7/01/22  2,000  2,050,300 
     New York Hospital Medical Center Queens, FHA,     
     4.75%, 2/15/37  315  272,929 
     New York State Association for Retarded Children     
     Inc., Series A, 6.00%, 7/01/32  350  359,646 
     North Shore Long Island Jewish Health System,     
     Series A, 5.50%, 5/01/37  750  736,343 
     NYU Hospital Center, Series B, 5.63%, 7/01/37  530  488,469 
New York State Dormitory Authority, Refunding RB,     
 North Shore Long Island Jewish Health System,     
 Series E, 5.50%, 5/01/33  500  492,155 
Saratoga County Industrial Development Agency,     
 New York, RB, Saratoga Hospital Project, Series B,     
 5.25%, 12/01/32  350  309,698 
Suffolk County Industrial Development Agency,     
 New York, Refunding RB, Jefferson’s Ferry Project,     
 5.00%, 11/01/28  450  377,024 
    10,953,957 
Housing — 3.2%     
New York City Housing Development Corp., RB,     
 Series J-2, Series A, AMT, 4.75%, 11/01/27  1,420  1,337,413 
New York State HFA, RB, Highland Ave Senior     
 Apartments, Series A, AMT, 5.00%, 2/15/39  1,000  874,940 
    2,212,353 

ANNUAL REPORT

AUGUST 31, 2009

37


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 (concluded)     
State — 5.6%     
New York State Dormitory Authority, RB:     
     Education, Series B, 5.75%, 3/15/36  $ 300  $ 328,818 
     Municipal Health Facilities, Lease, Sub-Series 2-4,     
     4.75%, 1/15/30  1,000  983,280 
New York State Urban Development Corp., RB, State     
 Personal Income Tax, Series B, 5.00%, 3/15/35  2,000  2,027,940 
State of New York, GO, Series A, 5.00%, 2/15/39  500  514,410 
    3,854,448 
Tobacco — 11.2%     
New York Counties Tobacco Trust III, RB, Tobacco     
 Settlement Pass Thru, Turbo, 6.00%, 6/01/43  2,535  2,146,790 
TSA South Carolina Inc., New York, RB,     
 Tobacco Settlement Asset Backed, Series 1,     
 5.75%, 7/15/12 (a)  5,000  5,650,650 
    7,797,440 
Transportation — 15.5%     
Metropolitan Transportation Authority, RB:     
     Series 2008C, 6.50%, 11/15/28  750  845,692 
     Series A, 5.00%, 11/15/30  5,000  5,020,200 
     Series B, 4.50%, 11/15/37  500  458,850 
Metropolitan Transportation Authority, Refunding RB,     
 Series A:     
     5.125%, 1/01/29  3,000  3,017,460 
     Insured (MBIA), 5.25%, 11/15/31  1,250  1,261,625 
Triborough Bridge & Tunnel Authority, New York, RB,     
 General Purpose, Series A, 5.00%, 1/01/32  150  151,040 
    10,754,867 
Utilities — 13.8%     
Long Island Power Authority, RB:     
     CAB (FSA), 5.20%, 6/01/28 (e)  3,515  1,431,203 
     Series A, 5.50%, 4/01/24  500  536,140 
     Series A, 6.25%, 4/01/33  150  168,876 
     Series C (CIFG), 5.25%, 9/01/29  1,000  1,054,800 
New York City Municipal Water Finance Authority, RB,:     
     Second General Resolution (MBIA),     
     4.50%, 6/15/37  850  807,288 
     Series A, 5.13%, 6/15/34  4,000  4,053,040 
New York State Environmental Facilities Corp.,     
 New York, RB, Revolving Funds, New York City     
 Municipal Water, Series A, 5.00%, 6/15/37  1,500  1,548,345 
    9,599,692 
Total Municipal Bonds in New York    102,833,703 
     Guam — 2.3%     
County/City/Special District/School District — 0.7%     
Territory of Guam, RB, Section 30, Series A,     
 5.75%, 12/01/34  455  457,753 
State — 0.7%     
Territory of Guam, GO, Series A, 7.00%, 11/15/39  485  486,329 
Tobacco — 0.4%     
Guam Economic Development & Commerce     
 Authority, RB, Tobacco Settlement Asset Backed,     
 5.63%, 6/01/47  375  284,062 
Utilities — 0.5%     
Guam Government Waterworks Authority, RB, Water,     
 5.88%, 7/01/35  400  354,332 
Total Municipal Bonds in Guam    1,582,476 
See Notes to Financial Statements.     

  Par   
Municipal Bonds  (000)  Value 
     Multi-State — 5.9%     
Housing — 5.9%     
Charter Mac Equity Issuer Trust (f)(g):     
     6.00%, 5/15/15  $ 1,500  $ 1,543,425 
     5.75%, 5/15/15  500  509,025 
     6.00%, 5/15/19  1,000  1,026,960 
     6.30%, 5/15/19  1,000  1,031,820 
Total Municipal Bonds in Multi-State    4,111,230 
     Puerto Rico — 6.4%     
Housing — 1.5%     
Puerto Rico HFA, RB, Sub, Capital Fund     
 Modernization, 5.13%, 12/01/27  1,000  1,015,750 
State — 0.4%     
Puerto Rico Sales Tax Financing Corp., RB, CAB,     
 Series A (AMBAC), 5.14%, 8/01/54 (e)  5,000  270,100 
Tobacco — 0.6%     
Children’s Trust Fund, RB, Asset Backed Bonds,     
 5.63%, 5/15/43  500  381,485 
Transportation — 3.2%     
Puerto Rico Highway & Transportation Authority, RB,     
 Series D, 5.38%, 7/01/12 (a)  2,000  2,220,040 
Utilities — 0.7%     
Puerto Rico Electric Power Authority, Refunding RB,     
 Series VV (MBIA), 5.25%, 7/01/29  500  506,130 
Total Municipal Bonds in Puerto Rico    4,393,505 
Total Municipal Bonds — 162.9%    112,920,914 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (h)     
     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  261,775 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts    261,775 
Total Long-Term Investments     
(Cost — $113,989,234) — 163.3%    113,182,689 
Short-Term Securities  Shares   
CMA New York Municipal Money Fund, 0.04% (i)(j)  756,077  756,077 
Total Short-Term Securities     
(Cost — $756,077) — 1.1%    756,077 
Total Investments (Cost — $114,745,311*) — 164.4%    113,938,766 
Other Assets Less Liabilities — 0.0%    14,684 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (0.2)%    (160,021) 
Preferred Shares, at Redemption Value — (64.2)%    (44,478,156) 
Net Assets Applicable to Common Shares — 100.0%    $ 69,315,273 

38 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments (concluded)

BlackRock New York Municipal Income Trust II (BFY)

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 114,432,847 
Gross unrealized appreciation  $ 3,426,962 
Gross unrealized depreciation  (4,080,983) 
Net unrealized depreciation  $ (654,021) 

(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) Non-income producing security.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.
(d) 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 is as of report date.
(e) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(f) 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.
(g) 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, and is subject to mandatory redemption at maturity.
(h) Securities represent bonds transferred to a tender option bond trust in exchange
for which the Trust acquired residual interest certificates. These securities serve
as collateral in a financing transaction. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond trusts.
(i) Investments in companies considered to be an affiliate of the Trust, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net   
  Affiliate  Activity  Income 
  CMA New York Municipal Money Fund  $(90,357)  $12,844 
(j) 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 definition may not apply for purposes of this report, which may combine sector 
  sub-classifications for reporting ease.     

On September 1, 2008, the Trust adopted Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1 — Short-Term Investments  $ 756,077 
Level 2 — Long-Term Investments1  113,182,689 
Level 3   
Total  $ 113,938,766 
 1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

39


Schedule of Investments August 31, 2009 BlackRock Virginia Municipal Bond Trust (BHV)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     Virginia — 120.2%       
Corporate — 13.6%       
Chesterfield County EDA, RB, Virginia Electric Power Co.     
 Project, Series A, AMT, 5.60%, 11/01/31  $ 500  $ 461,240 
Isle Wight County IDA, Virginia, RB, Series A, AMT,       
 5.70%, 11/01/27    1,300  1,144,585 
King George County IDA, Virginia, RB, Waste       
 Management Inc., Series A, AMT, 6.00%, 6/01/23    500  506,700 
Louisa IDA, RB, Virginia Electric & Power Co. Project,       
 Series A, 5.38%, 11/01/35    1,000  1,078,480 
      3,191,005 
County/City/Special District/School District — 25.8%     
Celebrate North Community Development Authority       
 Special Assessment Revenue, Special Assessment,     
 Celebrate Virginia North Project, Series B,       
 6.75%, 3/01/34    1,497  1,103,828 
City of Hampton Virginia, GO, Public Improvement,       
 5.00%, 4/01/20    1,000  1,077,930 
County of Prince William Virginia, RB, 5.00%, 12/01/21  1,275  1,338,674 
Dulles Town Center Community Development Authority,     
 Virginia, Special Assessment, Dulles Town Center       
 Project, 6.25%, 3/01/26    955  780,034 
Fairfax County, RB, Redevelopment & Housing Authority     
 Revenue, 5.00%, 10/01/39    1,500  1,521,300 
White Oak Village Shops Community Development       
 Authority, Special Assessment, Special Assessment,     
 5.30%, 3/01/17    250  232,273 
      6,054,039 
Education — 7.3%       
Virginia College Building Authority, Virginia, RB,       
 Washington & Lee University Project (MBIA):       
     5.25%, 1/01/26    500  578,975 
     5.25%, 1/01/31    1,000  1,139,960 
      1,718,935 
Health — 18.8%       
Danville IDA, Virginia, RB, Danville Regional Medical       
 Center (AMBAC), 5.25%, 10/01/28 (a)    1,500  1,707,000 
Fairfax County Economic Development Authority, RB,       
 Goodwin House, Inc., 5.00%, 10/01/27    1,000  852,160 
Henrico County EDA, Virginia, RB, Bon Secours Health,     
 Series A:       
     5.60%, 11/15/30    1,440  1,443,211 
     5.60%, 11/15/30 (b)    60  68,185 
Peninsula Ports Authority, Refunding RB, Virginia       
 Baptist Homes, Series C, 5.40%, 12/01/33    500  344,095 
      4,414,651 
Housing — 17.2%       
Virginia HDA, RB, Rental Housing, Non Ace, Series B,       
 5.63%, 6/01/39    1,000  1,032,090 
Virginia HDA, RB, Series H, Sub-Series H-1 (MBIA),       
 5.38%, 7/01/36    3,000  3,019,140 
      4,051,230 
State — 8.4%       
Virginia College Building Authority, Virginia, RB, Public     
 Higher Education Financing Program, Series A,       
 5.00%, 9/01/33    1,000  1,038,920 
Virginia Public School Authority, Virginia, RB,       
 School Financing:       
     1997 Resolution, Series B, 5.25%, 8/01/33    500  532,185 
     6.50%, 12/01/35    360  408,996 
      1,980,101 

    Par   
Municipal Bonds    (000)  Value 
     Virginia (concluded)       
Transportation — 12.1%       
Norfolk Airport Authority, Virginia, RB, Series A (MBIA),     
 5.13%, 7/01/31  $ 1,500  $ 1,491,120 
Richmond Metropolitan Authority, Virginia, Refunding RB     
 (MBIA), 5.25%, 7/15/22    1,250  1,343,738 
      2,834,858 
Utilities — 17.0%       
Fairfax County Water Authority, Refunding RB,       
 5.00%, 4/01/27    1,205  1,233,667 
Virginia Resources Authority, Virginia, RB, Infrastructure     
 Revenues, 5.13%, 5/01/27    635  652,316 
Virginia Resources Authority, Virginia, RB, Senior,       
 Virginia Pooled Financing Program, Series B,       
 5.00%, 11/01/33    2,000  2,095,760 
      3,981,743 
Total Municipal Bonds in Virginia      28,226,562 
     District of Columbia — 7.7%       
Transportation — 7.7%       
Metropolitan Washington Airports Authority, RB, Series B:     
     5.00%, 10/01/29    1,000  1,029,500 
     AMT (FSA), 5.00%, 10/01/34    20  18,784 
Metropolitan Washington DC Airports Authority Dulles     
 Toll Road Revenue, RB, First Senior Lien, Series A:       
     5.00%, 10/01/39    290  290,328 
     5.25%, 10/01/44    460  461,012 
Total Municipal Bonds in District of Columbia      1,799,624 
     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  199,382 
Total Municipal Bonds in Guam      199,382 
     Multi-State — 6.9%       
Housing — 6.9%       
Charter Mac Equity Issuer Trust,       
 7.20%, 11/15/14 (c)(d)    1,500  1,623,090 
Total Municipal Bonds in Multi-State      1,623,090 
     Puerto Rico — 4.9%       
Tobacco — 4.9%       
Children’s Trust Fund, RB, Asset Backed Bonds,       
 5.38%, 5/15/33    1,215  1,157,822 
Total Municipal Bonds in Puerto Rico      1,157,822 
Total Municipal Bonds — 140.6%      33,006,480 

See Notes to Financial Statements.

40 ANNUAL REPORT

AUGUST 31, 2009


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 — 13.2%     
Education — 8.8%     
University of Virginia, Refunding RB, 5.00%, 6/01/40  $ 2,000  $ 2,075,940 
Health — 4.4%     
Fairfax County IDA, Virginia, RB, Health Care,     
Inova Health System, Series A, 5.50%, 5/15/35  999  1,037,291 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 13.2%    3,113,231 
Total Investments (Cost — $35,492,713*) — 153.8%    36,119,711 
Other Assets Less Liabilities — 2.3%    539,109 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (6.4)%    (1,500,100) 
Preferred Shares, at Redemption Value — (49.7)%    (11,675,623) 
Net Assets Applicable to Common Shares — 100.0%    $ 23,483,097 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 33,878,917 
Gross unrealized appreciation  $ 1,617,731 
Gross unrealized depreciation  (876,228) 
Net unrealized appreciation  $ 741,503 

(a) Security is collateralized by Municipal or US Treasury Obligations.
(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) 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.
(d) 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, and is subject to mandatory redemption at maturity.
(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 1of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
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 definition may not apply for purposes of this report, which may combine sector
sub-classifications for reporting ease.

On September 1, 2008, the Trust adopted Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1   
Level 2 — Long-Term Investments1  $ 36,119,711 
Level 3   
Total  $ 36,119,711 
 1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

41


Schedule of Investments August 31, 2009

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

    Par   
Municipal Bonds    (000)           Value 
     Massachusetts — 135.3%       
Corporate — 1.9%       
Massachusetts Development Finance Agency, RB,       
 Ogden Haverhill, Series A, AMT, 6.70%, 12/01/14  $ 555  $ 535,009 
Education — 91.2%       
Massachusetts Development Finance Agency, RB:       
     Boston University, Series P, 5.45%, 5/15/59    1,500  1,494,255 
     Boston University, Series T-1 (AMBAC),       
     5.00%, 10/01/39    1,000  942,910 
     Clark University (Syncora), 5.13%, 10/01/35    500  503,480 
     College Issue, Series B (Syncora), 5.25%, 7/01/33  860  860,825 
     College Pharmacy & Allied Health, Series D (AGC),     
     5.00%, 7/01/27    500  518,120 
     Education, Belmont Hill School,       
     5.00%, 9/01/11 (a)    1,100  1,199,209 
     Education Facilities Academy Pacific Rim, Series A     
     (ACA), 5.13%, 6/01/31    1,000  658,380 
     Pharmacy & Allied Health Sciences,       
     5.75%, 7/01/13 (a)    1,000  1,165,530 
     Smith College, 5.00%, 7/01/35    2,000  2,024,060 
     WGBH Educational Foundation, Series A (AMBAC),     
     5.75%, 1/01/42    1,100  1,149,808 
     Western New England, Series A (AGC),       
     5.00%, 9/01/33    250  241,197 
     Wheeler School Issue, 6.50%, 12/01/29    540  540,443 
     Wheelock College, Series C, 5.25%, 10/01/37    1,000  830,620 
     Williston Northampton School Project (Syncora),       
     5.00%, 10/01/25    500  463,440 
     Worcester Polytechnic Institute (MBIA),       
     5.00%, 9/01/27    1,985  2,013,743 
Massachusetts Health & Educational Facilities       
 Authority, RB:       
     Berklee College Music, Series A, 5.00%, 10/01/37  1,000  1,004,580 
     Boston College, Series N, 5.13%, 6/01/37    1,000  1,014,070 
     Harvard University, Series FF, 5.13%, 7/15/37    850  866,227 
     Learning Center Deaf Children, Series C,       
     6.13%, 7/01/29    495  374,349 
     Northeastern University, Series R, 5.00%, 10/01/33  225  223,432 
     Simmons College, Series F (FGIC),       
     5.00%, 10/01/13 (a)    1,000  1,138,540 
     Tufts University, 5.38%, 8/15/38    1,000  1,063,890 
     University of Mass, Series C (MBIA),       
     5.13%, 10/01/34    230  230,347 
     Wellesley College, 5.00%, 7/01/33    1,500  1,536,120 
Massachusetts Health & Educational Facilities       
 Authority, Refunding RB, Tufts University, Series M,       
 5.50%, 2/15/27    1,000  1,163,740 
Massachusetts Health & Educational Facilities       
 Authority Wheaton College, Series D, 6.00%, 1/01/18  1,040  967,606 
Massachusetts State College Building Authority, RB,       
 Series A (AMBAC), 5.00%, 5/01/31    1,000  989,490 
Massachusetts State College Building Authority,       
 Refunding RB, Series B (Syncora), 5.50%, 5/01/39  825  881,702 
      26,060,113 
Health — 35.6%       
Massachusetts Development Finance Agency, RB:       
     First Mortgage, Brookhaven, Series A (Radian),       
     5.00%, 3/01/35    1,250  949,837 
     First Mortgage, Edgecombe Project, Series A,       
     6.75%, 7/01/21    855  848,032 
     First Mortgage, Overlook Community, Series A,       
     6.13%, 7/01/24    850  662,932 
     Seven Hills Foundation & Affiliates (Radian),       
     5.00%, 9/01/35    500  414,625 

         Par   
Municipal Bonds  (000)  Value 
     Massachusetts (concluded)     
Health (concluded)     
Massachusetts Health & Educational Facilities     
 Authority, RB:     
     Baystate Medical Center, Series F,     
     5.75%, 7/01/33  $ 1,000  $ 1,002,500 
     Berkshire Health System, Series E,     
     6.25%, 10/01/31  350  332,339 
     Berkshire Health System, Series F (AGC),     
     5.00%, 10/01/19  1,000  1,015,940 
     Caregroup, Series E-1, 5.00%, 7/01/28  500  457,705 
     Healthcare System, Covenant, 6.00%, 7/01/22  630  648,157 
     Healthcare System, Covenant, 6.00%, 7/01/31  315  318,194 
     Lahey Clinic Medical Center, Series D,     
     5.25%, 8/15/37  1,000  895,190 
     Milford, Whitinsville Hospital, Series D,     
     6.35%, 7/15/12 (a)  750  859,763 
     Predefining, Healthcare System, Covenant,     
     6.00%, 1/01/12 (a)  255  286,314 
     Valley Regional Health System, Series C,     
     5.75%, 7/01/18  395  375,542 
Massachusetts Health & Educational Facilities     
 Authority, Refunding RB, Christopher House, Series A,     
 6.88%, 1/01/29  480  408,518 
Massachusetts Industrial Finance Agency, RB,     
 Age Institute of Mass Project, 8.05%, 11/01/25  695  695,125 
    10,170,713 
Housing — 3.4%     
Massachusetts HFA, Massachusetts, RB, Housing,     
 Series F, AMT, 5.70%, 6/01/40  1,000  977,220 
State — 3.2%     
Massachusetts Development Finance Agency,     
 RB, Education, Middlesex School Project,     
 5.00%, 9/01/33  400  399,444 
Massachusetts State College Building Authority, RB,     
 Series A, 5.50%, 5/01/39  500  523,235 
    922,679 
Total Municipal Bonds in Massachusetts    38,665,734 
     Puerto Rico — 3.6%     
State — 3.6%     
Puerto Rico Sales Tax Financing Corp., RB,     
 First Sub-Series A, 5.75%, 8/01/37  1,000  1,025,010 
Total Municipal Bonds in Puerto Rico    1,025,010 
Total Municipal Bonds — 138.9%    39,690,744 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (b)     
     Massachusetts — 7.2%     
State — 7.2%     
Massachusetts School Building Authority, RB, Series A     
 (FSA), 5.00%, 8/15/30  2,010  2,074,257 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 7.2%    2,074,257 
Total Long-Term Investments     
(Cost — $42,485,243) — 146.1%    41,765,001 

See Notes to Financial Statements.

42 ANNUAL REPORT

AUGUST 31, 2009


Schedule of Investments (concluded)

The Massachusetts Health & Tax-Exempt Trust (MHE)

  Par   
Short-Term Securities  (000)  Value 
Massachusetts — 4.2%     
Massachusetts Health & Educational Facilities     
 Authority, RB, VRDN, Partners Healthcare System,     
 Series D -1, 0.10%, 9/01/09 (c)  $ 1,200  $ 1,200,000 
Total Short-Term Securities     
(Cost — $1,200,000) — 4.2%    1,200,000 
Total Investments (Cost — $43,685,243*) — 150.3%    42,965,001 
Other Assets Less Liabilities — 19.1%    5,452,012 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (4.7)%    (1,340,505) 
Preferred Shares, at Redemption Value — (64.7)%    (18,501,468) 
Net Assets Applicable to Common Shares — 100.0%    $ 28,575,040 

* The cost and unrealized appreciation (depreciation) of investments as of August 31,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 42,327,871 
Gross unrealized appreciation  $ 1,212,636 
Gross unrealized depreciation  (1,915,101) 
Net unrealized depreciation  $ (702,465) 

(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) Securities represent underlying bonds transferred to a tender option bond trust
in exchange for which the Trust acquired residual interest certificates. These securi-
ties serve as collateral in a financing transaction. See Note 1 of the Notes to
Financial Statements for details of Municipal Bonds Transferred to Tender Option
Bond Trusts.
(c) 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.
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 definition may not apply for purposes of this report, which may combine sector
sub-classifications for reporting ease.

Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes
a framework for measuring fair values and requires additional disclosures about the
use of 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 securities
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 methodology used for valuing securities are not necessarily an indica-
tion 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, 2009 in determin-
ing the fair valuation of the Trust’s investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1   
Level 2:   
   Long-Term Investments1  $ 41,765,001 
   Short-Term Securities  1,200,000 
Total Level 2  42,965,001 
Level 3   
Total  $ 42,965,001 

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

See Notes to Financial Statements.

(Percentages shown are based on Net Assets)

ANNUAL REPORT

AUGUST 31, 2009

43


Statements of Assets and Liabilities       
  BlackRock  BlackRock  BlackRock 
  California Insured  California  California 
  Municipal  Municipal  Municipal 
  Income Trust  Bond Trust  Income Trust II 
August 31, 2009  (BCK)  (BZA)  (BCL) 
     Assets       
Investments at value — unaffiliated1  $ 112,138,985  $ 77,254,481  $ 168,606,847 
Investments at value — affiliated2  2,412,842  3,649,532  6,042,881 
Cash  16,146  12,609  28,791 
Cash collateral on futures    80,000   
Investments sold receivable  3,044,717  2,556,349  3,578,333 
Interest receivable  1,288,795  1,006,338  2,169,782 
Income receivable — affiliated  28  27  55 
Prepaid expenses  59,265  56,598  56,514 
Other assets  5,805  5,676  11,506 
Total assets  118,966,583  84,621,610  180,494,709 
     Accrued Liabilities       
Investments purchased payable  3,040,517  4,793,816   
Income dividends payable — Common Shares  348,354  262,545  595,984 
Investment advisory fees payable  41,964  32,695  73,120 
Interest expense and fees payable  13,233  4,427  13,358 
Officer’s and Trustees’ fees payable  6,758  6,550  12,552 
Other affiliates payable  388  270  608 
Other accrued expenses payable  68,196  67,583  78,474 
Total accrued liabilities  3,519,410  5,167,886  774,096 
     Other Liabilities       
Trust certificates3  10,989,205  7,508,477  23,186,647 
Total Liabilities  14,508,615  12,676,363  23,960,743 
     Preferred Shares at Redemption Value       
Preferred shares at liquidation preference, plus unpaid dividends4,5,6  31,325,412  22,450,295  46,553,285 
Net Assets Applicable to Common Shareholders  $ 73,132,556  $ 49,494,952  $ 109,980,681 
     Net Assets Applicable to Common Shareholders Consist of       
Paid-in capital7,8,9  $ 74,841,236  $ 48,409,787  $ 113,492,176 
Undistributed net investment income  817,640  686,783  1,708,581 
Accumulated net realized gain (loss)  (2,736,764)  (452,672)  (5,861,101) 
Net unrealized appreciation/depreciation  210,444  851,054  641,025 
Net Assets Applicable to Common Shareholders  $ 73,132,556  $ 49,494,952  $ 109,980,681 
Net asset value per Common Share  $ 13.86  $ 14.52  $ 13.75 
   1 Investments at cost — unaffiliated  $ 111,928,541  $ 76,403,427  $ 167,965,822 
   2 Investments at cost — affiliated  $ 2,412,842  $ 3,649,532  $ 6,042,881 
   3 Represents short-term floating rate certificates issued by tender option bond trusts.       
   4 Preferred Shares outstanding:       
           Par value $0.001 per share  1,253  898  1,862 
Par value $0.01 per share       
Par value $0.10 per share       
   5 Preferred Shares at liquidation preference  $ 25,000  $ 25,000  $ 25,000 
   6 Preferred Shares authorized  unlimited  unlimited  unlimited 
   7 Common Shares outstanding  5,278,087  3,409,668  7,999,789 
   8 Par value per Common Share  $ 0.001  $ 0.001  $ 0.001 
   9 Common Shares authorized  unlimited  unlimited  unlimited 
See Notes to Financial Statements.       

44 ANNUAL REPORT

AUGUST 31, 2009


BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  The 
Maryland  MuniHoldings  New Jersey  New York Insured  New York  New York  Virginia   Massachusetts 
Municipal  New York  Municipal  Municipal  Municipal  Municipal  Municipal  Health & Education 
Bond Trust  Insured Fund, Inc.  Bond Trust  Income Trust  Bond Trust  Income Trust II  Bond Trust  Tax-Exempt Trust 
(BZM)  (MHN)  (BLJ)  (BSE)  (BQH)  (BFY)  (BHV)  (MHE) 
$ 44,238,082  $ 710,336,512  $ 49,292,812  $ 135,120,785  $ 61,879,560  $ 113,182,689  $ 36,119,711  $ 42,965,001 
1,200,364  5,049,821  650,601  3,311,074  1,137,340  756,077     
10,228  41,484  36,582  50,273  8,646  47,913  169,589  5,053,560 
               
20,000  3,757,199      1,001,659  257,331  3,000  64 
559,847  9,114,766  709,975  1,537,329  834,440  1,413,436  547,446  617,160 
30  1,281  28  28  29  38  23   
9,604  42,948  8,207  13,249  8,839  6,271  9,071  1,805 
6,193  43,250  5,902  5,844  6,147  7,860  4,893   
46,044,348  728,387,261  50,704,107  140,038,582  64,876,660  115,671,615  36,853,733  48,637,590 
  1,762,245    337,936  678,024  1,211,218     
139,217  2,017,082  174,350  424,304  215,402  383,020  124,840  138,300 
19,020  281,513  20,826  51,833  26,601  47,461  15,317  20,313 
3,884  251,155  333  20,458  2,862  81  809  910 
6,985  44,170  6,729  6,693  6,979  8,812  5,625  124 
150  2,445  165  460  212  378  120  158 
64,376  116,324  65,536  69,876  66,321  67,276  49,011  61,682 
233,632  4,474,934  267,939  911,560  996,401  1,718,246  195,722  221,487 
1,500,000  57,289,626  419,783  10,408,504  1,549,115  159,940  1,499,291  1,339,595 
1,733,632  61,764,560  687,722  11,320,064  2,545,516  1,878,186  1,695,013  1,561,082 
16,000,854  243,639,996  18,776,919  40,577,165  22,126,939  44,478,156  11,675,623  18,501,468 
$ 28,309,862  $ 422,982,705  $ 31,239,466  $ 88,141,353  $ 40,204,205  $ 69,315,273  $ 23,483,097  $ 28,575,040 
$ 29,040,358  $ 456,812,829  $ 32,734,431  $ 91,891,494  $ 39,203,132  $ 70,079,093  $ 22,164,135  $ 29,683,932 
331,145  5,762,952  421,041  1,109,388  539,568  1,196,487  407,862  508,820 
(426,916)  (30,559,159)  (376,825)  (3,377,390)  95,830  (1,153,762)  284,102  (897,470) 
(634,725)  (9,033,917)  (1,539,181)  (1,482,139)  365,675  (806,545)  626,998  (720,242) 
$ 28,309,862  $ 422,982,705  $ 31,239,466  $ 88,141,353  $ 40,204,205  $ 69,315,273  $ 23,483,097  $ 28,575,040 
$ 13.81  $ 13.74  $ 13.53  $ 13.61  $ 14.56  $ 14.03  $ 15.05  $ 12.19 
$ 44,872,807  $ 719,370,429  $ 50,831,993  $ 136,602,924  $ 61,513,885  $ 113,989,234  $ 35,492,713  $ 43,685,243 
$ 1,200,364  $ 5,049,821  $ 650,601  $ 3,311,074  $ 1,137,340  $ 756,077  $ —   
640    751  1,623  885  1,779  467   
              370 
  9,745             
$ 25,000  $ 25,000  $ 25,000  $ 25,000  $ 25,000  $ 25,000  $ 25,000  $ 50,000 
unlimited  12,520  unlimited  unlimited  unlimited  unlimited  unlimited  unlimited 
2,050,319  30,795,138  2,309,276  6,477,918  2,761,563  4,942,197  1,560,507  2,344,067 
$ 0.001  $ 0.10  $ 0.001  $ 0.001  $ 0.001  $ 0.001  $ 0.001  $ 0.01 
unlimited  200 million  unlimited  unlimited  unlimited  unlimited  unlimited  unlimited 
See Notes to Financial Statements.             

ANNUAL REPORT

AUGUST 31, 2009

45


Statements of Operations       
  BlackRock  BlackRock  BlackRock 
  California Insured  California  California 
  Municipal  Municipal  Municipal 
  Income Trust  Bond Trust  Income Trust II 
Year Ended August 31, 2009  (BCK)  (BZA)           (BCL) 
     Investment Income       
Interest  $ 5,606,991  $ 4,275,106  $ 9,355,099 
Income – affiliated  37,673  15,680  41,994 
Total income  5,644,664  4,290,786  9,397,093 
     Expenses       
Investment advisory  609,274  490,448  939,775 
Commissions for Preferred Shares  67,401  49,997  104,776 
Professional  53,370  54,458  63,880 
Accounting services  21,371  19,753  35,186 
Transfer agent  16,755  18,637  29,229 
Printing  15,507  9,454  20,934 
Registration  9,170  9,166  3,169 
Officer and Trustees  8,951  6,369  13,643 
Custodian  8,452  6,757  11,584 
Miscellaneous  39,776  38,556  50,375 
Total expenses excluding interest expense and fees  850,027  703,595  1,272,551 
Interest expense and fees1  117,225  30,428  139,795 
Total expenses  967,252  734,023  1,412,346 
Less fees waived by advisor  (143,969)  (148,468)  (194,079) 
Less fees paid indirectly       
Total expenses after fees waived and paid indirectly  823,283  585,555  1,218,267 
Net investment income  4,821,381  3,705,231  8,178,826 
     Realized and Unrealized Gain (Loss)       
Net realized gain (loss) from:       
   Investments  (1,353,991)  26,787  (1,560,394) 
   Financial futures contracts and forward interest rate swaps  29,468  23,574  (474,263) 
  (1,324,523)  50,361  (2,034,657) 
Net change in unrealized appreciation/depreciation on:       
   Investments  (334,427)  (1,741,282)  (1,917,773) 
   Financial futures contracts and forward interest rate swaps      375,543 
  (334,427)  (1,741,282)  (1,542,230) 
Total realized and unrealized gain (loss)  (1,658,950)  (1,690,921)  (3,576,887) 
     Dividends and Distributions to Preferred Shareholders From       
Net investment income  (627,459)  (463,959)  (992,162) 
Net realized gain    (4,924)   
  (627,459)  (468,883)  (992,162) 
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations  $ 2,534,972  $ 1,545,427  $ 3,609,777 
   1 Related to tender option bond trusts.       

See Notes to Financial Statements.

46 ANNUAL REPORT

AUGUST 31, 2009


BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock               The 
Maryland  MuniHoldings  New Jersey  New York Insured  New York  New York  Virginia  Massachusetts 
Municipal         New York  Municipal  Municipal  Municipal  Municipal  Municipal  Health & Education 
Bond Trust  Insured Fund, Inc.  Bond Trust  Income Trust  Bond Trust  Income Trust II  Bond Trust  Tax-Exempt Trust 
(BZM)         (MHN)           (BLJ)           (BSE)  (BQH)  (BFY)  (BHV)  (MHE) 
$ 2,326,498  $ 34,217,027  $ 2,761,249  $ 6,754,852  $ 3,459,159  $ 5,943,076  $ 1,892,002  $ 2,335,184 
28,799  86,696  32,373  12,716  3,072  13,765  581   
2,355,297  34,303,723  2,793,622  6,767,568  3,462,231  5,956,841  1,892,583  2,335,184 
281,784  3,833,369  308,874  722,693  394,495  596,222  224,484  228,428 
28,262  462,021  34,491  75,643  40,127  80,594  21,606  33,726 
51,878  101,626  45,687  56,152  45,431  54,069  39,320  51,882 
13,796  200,647  17,684  26,193  17,465  19,072  4,183  13,914 
18,539  63,149  18,581  17,220  17,804  21,826  18,391  21,754 
5,107  42,925  4,948  19,289  6,048  13,387  2,870  3,235 
810  10,500  913  9,178  9,166  1,957  617  928 
3,172  58,366  3,513  10,339  3,946  7,939  2,614  3,611 
3,845  32,625  4,238  8,598  4,704  8,520  3,558  4,403 
35,621  107,534  37,954  44,119  37,783  46,500  36,757  14,312 
442,814  4,912,762  476,883  989,424  576,969  850,086  354,400  376,193 
28,936  1,138,777  6,399  227,866  19,727  147  18,443  21,859 
471,750  6,051,539  483,282  1,217,290  596,696  850,233  372,843  398,052 
(84,850)  (800,017)  (98,919)  (155,036)  (115,923)  (110,703)  (63,057)   
      (58)      (69)  (498) 
386,900  5,251,522  384,363  1,062,196  480,773  739,530  309,717  397,554 
1,968,397  29,052,201  2,409,259  5,705,372  2,981,458  5,217,311  1,582,866  1,937,630 
(403,175)  (2,788,009)  (102,603)  (2,559,414)  158,284  (106,700)  300,733  (495,998) 
  67,701    12,943  5,974  10,952    (99,000) 
(403,175)  (2,720,308)  (102,603)  (2,546,471)  164,258  (95,748)  300,733  (594,998) 
(968,568)  (6,828,468)  (1,440,583)  (34,905)  (841,495)  (1,684,868)  3,780  (481,570) 
              83,017 
(968,568)  (6,828,468)  (1,440,583)  (34,905)  (841,495)  (1,684,868)  3,780  (398,553) 
(1,371,743)  (9,548,776)  (1,543,186)  (2,581,376)  (677,237)  (1,780,616)  304,513  (993,551) 
(267,792)  (4,263,541)  (322,491)  (700,402)  (371,954)  (757,706)  (153,097)  (315,726) 
(2,362)        (3,799)    (84,115)   
(270,154)  (4,263,541)  (322,491)  (700,402)  (375,753)  (757,706)  (237,212)  (315,726) 
$ 326,500  $ 15,239,884  $ 543,582  $ 2,423,594  $ 1,928,468  $ 2,678,989  $ 1,650,167  $ 628,353 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

47


Statements of Changes in Net Assets         
     BlackRock California Insured  BlackRock California Municipal 
   Municipal Income Trust (BCK)  Bond Trust (BZA) 
  Year Ended August 31,  Year Ended August 31, 
Increase (Decrease) in Net Assets:         2009  2008  2009  2008 
     Operations         
Net investment income  $ 4,821,381  $ 5,029,423  $ 3,705,231  $ 3,804,585 
Net realized gain (loss)  (1,324,523)  (696,593)  50,361  16,331 
Net change in unrealized appreciation/depreciation  (334,427)  (2,327,135)  (1,741,282)  (1,372,393) 
Dividends and distributions to Preferred Shareholders from:         
   Net investment income  (627,459)  (1,418,583)  (463,959)  (1,029,626) 
Net realized gain      (4,924)   
Net increase (decrease) in net assets applicable to Common Shareholders resulting         
from operations  2,534,972  587,112  1,545,427  1,418,897 
     Dividends and Distributions to Common Shareholders From         
Net investment income  (3,705,217)  (3,641,581)  (2,690,228)  (3,103,983) 
Net realized gain      (9,946)   
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (3,705,217)  (3,641,581)  (2,700,174)  (3,103,983) 
     Capital Share Transactions         
Reinvestment of common dividends    19,225    351,551 
     Net Assets Applicable to Common Shareholders         
Total decrease in net assets applicable to Common Shareholders  (1,170,245)  (3,035,244)  (1,154,747)  (1,333,535) 
Beginning of year  74,302,801  77,338,045  50,649,699  51,983,234 
End of year  $ 73,132,556  $ 74,302,801  $ 49,494,952  $ 50,649,699 
Undistributed net investment income  $ 817,640  $ 330,965  $ 686,783  $ 135,745 

See Notes to Financial Statements.

48 ANNUAL REPORT

AUGUST 31, 2009


BlackRock California Municipal  BlackRock Maryland Municipal  BlackRock MuniHoldings New York  BlackRock New Jersey 
         Income Trust II (BCL)  Bond Trust (BZM)  Insured Fund, Inc. (MHN)  Municipal Bond Trust (BLJ) 
         Year Ended August 31,  Year Ended August 31,  Year Ended August 31,  Year Ended August 31, 
2009       2008         2009         2008  2009  2008         2009         2008 
$ 8,178,826  $ 8,516,520  $ 1,968,397  $ 2,187,858  $ 29,052,201  $ 30,229,458  $ 2,409,259  $ 2,624,072 
(2,034,657)  (240,663)  (403,175)  52,367  (2,720,308)  (4,358,744)  (102,603)  (274,414) 
(1,542,230)  (7,181,675)  (968,568)  (801,629)  (6,828,468)  (10,569,389)  (1,440,583)  (2,291,456) 
(992,162)  (2,305,653)  (267,792)  (575,579)  (4,263,541)  (9,817,592)  (322,491)  (675,482) 
    (2,362)  (10,561)        (6,860) 
3,609,777  (1,211,471)  326,500  852,456  15,239,884  5,483,733  543,582  (624,140) 
(5,891,844)  (6,207,529)  (1,621,017)  (1,770,800)  (20,804,641)  (20,232,405)  (1,984,969)  (2,176,081) 
    (6,564)  (29,818)        (21,875) 
(5,891,844)  (6,207,529)  (1,627,581)  (1,800,618)  (20,804,641)  (20,232,405)  (1,984,969)  (2,197,956) 
  78,795  122,854  134,190      97,042  159,974 
(2,282,067)  (7,340,205)  (1,178,227)  (813,972)  (5,564,757)  (14,748,672)  (1,344,345)  (2,662,122) 
112,262,748  119,602,953  29,488,089  30,302,061  428,547,462  443,296,134  32,583,811  35,245,933 
$109,980,681  $112,262,748  $ 28,309,862  $ 29,488,089  $422,982,705  $428,547,462  $ 31,239,466  $ 32,583,811 
$ 1,708,581  $ 413,761  $ 331,145  $ 251,763  $ 5,762,952  $ 1,245,028  $ 421,041  $ 319,435 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

49


Statements of Changes in Net Assets (concluded)     
       BlackRock New York Insured 
     Municipal Income Trust (BSE) 
  Year Ended August 31, 
Increase (Decrease) in Net Assets:  2009  2008 
     Operations     
Net investment income  $ 5,705,372  $ 6,193,181 
Net realized gain (loss)  (2,546,471)  (653,991) 
Net change in unrealized appreciation/depreciation  (34,905)  (3,146,975) 
Dividends and distributions to Preferred Shareholders from:     
   Net investment income  (700,402)  (1,637,764) 
Net realized gain    (82,413) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations  2,423,594  672,038 
     Dividends and Distributions to Common Shareholders From     
Net investment income  (4,652,443)  (4,505,354) 
Net realized gain    (221,583) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (4,652,443)  (4,726,937) 
     Capital Share Transactions     
Reinvestment of common dividends  39,052  72,019 
     Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  (2,189,797)  (3,982,880) 
Beginning of period  90,331,150  94,314,030 
End of period  $ 88,141,353  $ 90,331,150 
Undistributed net investment income  $ 1,109,388  $ 757,900 

See Notes to Financial Statements.

50 ANNUAL REPORT

AUGUST 31, 2009


            The Massachusetts Health & 
            Education Tax-Exempt Trust (MHE) 
     BlackRock New York  BlackRock New York  BlackRock Virginia       
Municipal Bond Trust (BQH)  Municipal Income Trust II (BFY)  Municipal Bond Trust (BHV)    Period   
            Year Ended  January 1, 2008   Year Ended 
Year Ended August 31,  Year Ended August 31,         Year Ended August 31,  August 31,  to August 31,  December 31, 
       2009  2008  2009  2008         2009         2008  2009  2008  2007 
$ 2,981,458  $ 3,123,151  $ 5,217,311  $ 5,330,243  $ 1,582,866  $ 1,723,577  $ 1,937,630  $ 1,371,557  $ 2,150,393 
164,258  51,106  (95,748)  (987,855)  300,733  292,759  (594,998)  (142,627)  (90,387) 
(841,495)  (1,618,246)  (1,684,868)  (1,764,010)  3,780  (1,013,968)  (398,553)  (1,202,802)  (1,821,519) 
(371,954)  (796,921)  (757,706)  (1,408,467)  (153,097)  (457,881)  (315,726)  (408,081)  (718,637) 
(3,799)  (19,635)    (35,412)  (84,115)         
1,928,468  739,455  2,678,989  1,134,499  1,650,167  544,487  628,353  (381,953)  (480,150) 
(2,335,251)  (2,552,826)  (3,927,976)  (3,827,367)  (1,388,620)  (1,394,947)  (1,469,268)  (918,874)  (1,378,312) 
(10,873)  (62,036)    (84,756)  (247,310)        (5,635) 
(2,346,124)  (2,614,862)  (3,927,976)  (3,912,123)  (1,635,930)  (1,394,947)  (1,469,268)  (918,874)  (1,383,947) 
18,922  318,829  20,276  19,335  121,937  144,001       
(398,734)  (1,556,578)  (1,228,711)  (2,758,289)  136,174  (706,459)  (840,915)  (1,300,827)  (1,864,097) 
40,602,939  42,159,517  70,543,984  73,302,273  23,346,923  24,053,382  29,415,955  30,716,782  32,580,879 
$ 40,204,205  $ 40,602,939  $ 69,315,273  $ 70,543,984  $ 23,483,097  $ 23,346,923  $ 28,575,040  $ 29,415,955  $ 30,716,782 
$ 539,568  $ 265,371  $ 1,196,487  $ 664,858  $ 407,862  $ 433,606  $ 508,820  $ 356,896  $ 323,091 

See Notes to Financial Statements.

ANNUAL REPORT

AUGUST 31, 2009

51


Financial Highlights  BlackRock California Insured Municipal Income Trust (BCK) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.08  $ 14.66  $ 15.24  $ 15.22  $ 14.01 
Net investment income  0.911  0.951  0.99    0.98  0.99 
Net realized and unrealized gain (loss)  (0.31)  (0.57)  (0.59)    (0.01)  1.27 
Dividends to Preferred Shareholders from net investment income  (0.12)  (0.27)  (0.28)    (0.24)  (0.15) 
Net increase from investment operations  0.48  0.11  0.12    0.73  2.11 
Dividends to Common Shareholders from net investment income  (0.70)  (0.69)  (0.70)    (0.71)  (0.90) 
Net asset value, end of year  $ 13.86  $ 14.08  $ 14.66  $ 15.24  $ 15.22 
Market price, end of year  $ 12.94  $ 12.95  $ 14.30  $ 14.61  $ 16.08 
     Total Investment Return2             
Based on net asset value  4.76%  0.92%  0.76%    5.22%  15.62% 
Based on market price  6.34%  (4.84)%  2.52%    (4.53)%  22.24% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.43%  1.36%  1.24%    1.28%  1.30% 
Total expenses after fees waived and before fees paid indirectly3  1.22%  1.07%  0.92%    0.97%  0.98% 
Total expenses after fees waived and paid indirectly3  1.22%  1.07%  0.90%    0.95%  0.97% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
and fees3,4  1.04%  1.00%  0.90%    0.95%  0.97% 
Net investment income3  7.14%  6.54%  6.50%    6.58%  6.72% 
Dividends paid to Preferred Shareholders  0.93%  1.85%  1.87%    1.63%  1.04% 
Net investment income to Common Shareholders  6.21%  4.69%  4.63%    4.95%  5.68% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 73,133  $ 74,303  $ 77,338  $ 80,418  $ 80,289 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 31,325  $ 37,550  $ 46,500  $ 46,500  $ 46,500 
Portfolio turnover  65%  35%  28%    20%  16% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 83,366  $ 74,484  $ 66,591  $ 68,241  $ 68,170 

1 Based on average 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.

52 ANNUAL REPORT

AUGUST 31, 2009


Financial Highlights    BlackRock California Municipal Bond Trust (BZA) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.85  $ 15.35  $ 16.28  $ 16.19  $ 14.67 
Net investment income  1.091  1.121  1.13    1.14  1.13 
Net realized and unrealized gain (loss)  (0.49)  (0.41)  (0.82)    0.17  1.50 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.14)  (0.30)  (0.30)    (0.26)  (0.15) 
   Net realized gain             (0.00)2           
Net increase from investment operations  0.46  0.41  0.01    1.05  2.48 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.79)  (0.91)  (0.94)    (0.96)  (0.96) 
   Net realized gain             (0.00)2           
Total dividends and distributions to Common Shareholders  (0.79)  (0.91)  (0.94)    (0.96)  (0.96) 
Net asset value, end of year  $ 14.52  $ 14.85  $ 15.35  $ 16.28  $ 16.19 
Market price, end of year  $ 13.55  $ 14.48  $ 16.50  $ 18.05  $ 16.33 
     Total Investment Return3             
Based on net asset value  4.57%  2.64%  (0.33)%    6.71%  17.71% 
Based on market price  0.07%  (6.89)%  (3.37)%    17.30%  25.31% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses4  1.62%  1.52%  1.41%    1.45%  1.50% 
Total expenses after fees waived and before fees paid indirectly4  1.29%  1.11%  0.96%    0.98%  1.03% 
Total expenses after fees waived and paid indirectly4  1.29%  1.11%  0.94%    0.96%  1.00% 
Total expenses after fees waived and paid indirectly             
   and excluding interest expense and fees4,5  1.22%  1.09%  0.94%    0.96%  1.00% 
Net investment income4  8.17%  7.31%  7.08%    7.20%  7.30% 
Dividends paid to Preferred Shareholders  1.02%  1.98%  1.87%    1.64%  0.98% 
Net investment income to Common Shareholders  7.15%  5.33%  5.21%    5.56%  6.32% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 49,495  $ 50,650  $ 51,983  $ 54,801  $ 54,265 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 22,450  $ 27,975  $ 29,975  $ 29,975  $ 29,975 
Portfolio turnover  57%  24%  21%    16%  22% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 80,117  $ 70,278  $ 68,364  $ 70,714  $ 70,263 

1 Based on average 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, 2009

53


Financial Highlights    BlackRock California Municipal Income Trust II (BCL) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.03  $ 14.96  $ 15.72  $ 15.52  $ 13.77 
Net investment income  1.021  1.061  1.07    1.08  1.09 
Net realized and unrealized gain (loss)  (0.44)  (0.92)  (0.74)    0.16  1.75 
Dividends to Preferred Shareholders from net investment income  (0.12)  (0.29)  (0.30)    (0.25)  (0.15) 
Net increase from investment operations  0.46  (0.15)  0.03    0.99  2.69 
Dividends to Common Shareholders from net investment income  (0.74)  (0.78)  (0.79)    (0.79)  (0.94) 
Net asset value, end of year  $ 13.75  $ 14.03  $ 14.96  $ 15.72  $ 15.52 
Market price, end of year  $ 12.75  $ 12.70  $ 14.44  $ 15.40  $ 14.26 
     Total Investment Return2             
Based on net asset value  4.84%  (0.89)%  0.09%    6.93%  20.38% 
Based on market price  7.39%  (7.05)%  (1.38)%    14.01%  11.09% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.40%  1.29%  1.19%    1.24%  1.26% 
Total expenses after fees waived and before fees paid indirectly3  1.21%  1.13%  0.96%    1.00%  1.02% 
Total expenses after fees waived and paid indirectly3  1.21%  1.13%  0.95%    0.98%  1.01% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
and fees3,4  1.07%  1.08%  0.95%    0.98%  1.01% 
Net investment income3  8.13%  7.30%  6.81%    7.06%  7.46% 
Dividends paid to Preferred Shareholders  0.99%  1.97%  1.89%    1.62%  1.00% 
Net investment income to Common Shareholders  7.14%  5.33%  4.92%    5.44%  6.46% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 109,981  $ 112,263  $ 119,603  $ 125,525  $ 123,920 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 46,550  $ 59,750  $ 71,950  $ 71,950  $ 71,950 
Portfolio turnover  66%  36%  30%    18%  21% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 84,068  $ 71,981  $ 66,563  $ 68,625  $ 68,063 

1 Based on average 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.

54 ANNUAL REPORT

AUGUST 31, 2009


Financial Highlights    BlackRock Maryland Municipal Bond Trust (BZM) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.45  $ 14.91  $ 15.98  $ 16.11  $ 15.24 
Net investment income  0.961  1.071  1.08    1.07  1.07 
Net realized and unrealized gain (loss)  (0.68)  (0.36)  (0.99)    (0.08)  0.83 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.13)  (0.28)  (0.31)    (0.26)  (0.17) 
   Net realized gain             (0.00)2  (0.01)             (0.00)2       
Net increase (decrease) from investment operations  0.15  0.42  (0.22)    0.73  1.73 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.79)  (0.87)  (0.85)    (0.86)  (0.86) 
   Net realized gain             (0.00)2  (0.01)             (0.00)2       
Total dividends and distributions to Common Shareholders  (0.79)  (0.88)  (0.85)    (0.86)  (0.86) 
Net asset value, end of year  $ 13.81  $ 14.45  $ 14.91  $ 15.98  $ 16.11 
Market price, end of year  $ 15.35  $ 15.75  $ 17.43  $ 17.45  $ 15.96 
     Total Investment Return3             
Based on net asset value  1.52%  2.60%  (1.85)%    4.57%  11.73% 
Based on market price  3.53%  (4.33)%  5.08%    15.26%  12.53% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses4  1.83%  1.70%  1.54%    1.64%  1.60% 
Total expenses after fees waived and before fees paid indirectly4  1.50%  1.32%  1.10%    1.17%  1.13% 
Total expenses after fees waived and paid indirectly4  1.50%  1.32%  1.07%    1.11%  1.11% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
   and fees4,5  1.39%  1.28%  1.07%    1.11%  1.11% 
Net investment income4  7.62%  7.19%  6.87%    6.76%  6.82% 
Dividends paid to Preferred Shareholders  1.04%  1.89%  1.94%    1.66%  1.05% 
Net investment income to Common Shareholders  6.58%  5.30%  4.93%    5.10%  5.77% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 28,310  $ 29,488  $ 30,302  $ 32,354  $ 32,492 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 16,000  $ 16,000  $ 18,000  $ 18,000  $ 18,000 
Portfolio turnover  9%  15%  7%      4% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 69,235  $ 71,083  $ 67,089  $ 69,950  $ 70,138 

1 Based on average 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, 2009

55


Financial Highlights  BlackRock MuniHoldings New York Insured Fund, Inc. (MHN) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 13.92  $ 14.40  $ 14.96  $ 15.54  $ 15.41 
Net investment income1  0.94  0.98  1.00    1.03  1.04 
Net realized and unrealized gain (loss)  (0.30)  (0.48)  (0.52)    (0.48)  0.21 
Dividends to Preferred Shareholders from net investment income  (0.14)  (0.32)  (0.34)    (0.29)  (0.17) 
Net increase from investment operations  0.50  0.18  0.14    0.26  1.08 
Dividends to Common Shareholders from net investment income  (0.68)  (0.66)  (0.70)    (0.84)  (0.95) 
Net asset value, end of year  $ 13.74  $ 13.92  $ 14.40  $ 14.96  $ 15.54 
Market price, end of year  $ 12.89  $ 12.12  $ 13.53  $ 14.62  $ 15.28 
     Total Investment Return2             
Based on net asset value  5.19%  1.74%  1.12%    1.98%  7.63% 
Based on market price  13.34%  (5.72)%  (2.78)%    1.36%  15.66% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.55%  1.65%  1.79%    1.73%  1.59% 
Total expenses after fees waived3  1.35%  1.52%  1.71%    1.65%  1.52% 
Total expenses after fees waived and excluding interest expense and fees3,4  1.05%  1.15%  1.15%    1.15%  1.14% 
Net investment income3  7.45%  6.90%  6.65%    6.94%  6.71% 
Dividends paid to Preferred Shareholders  1.09%  2.24%  2.29%    1.93%  1.09% 
Net investment income to Common Shareholders  6.36%  4.66%  4.36%    5.01%  5.62% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 422,983  $ 428,547  $ 443,296  $ 460,638  $ 478,413 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 243,625  $ 252,875  $ 313,000  $ 313,000  $ 313,000 
Portfolio turnover  18%  21%  24%    47%  33% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 68,407  $ 67,379  $ 60,4225  $ 61,7995  $ 63,2145 

1 Based on average 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.
5 Amounts have been recalculated to conform with current year presentation.

See Notes to Financial Statements.

56 ANNUAL REPORT

AUGUST 31, 2009


Financial Highlights    BlackRock New Jersey Municipal Bond Trust (BLJ) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.16  $ 15.38  $ 16.33  $ 16.26  $ 14.71 
Net investment income (loss)  1.051  1.141  1.15    1.16  1.16 
Net realized and unrealized gain (loss)  (0.68)  (1.11)  (0.87)    0.18  1.48 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.14)  (0.29)  (0.29)    (0.24)  (0.15) 
   Net realized gain    (0.00)2      (0.02)   
Net increase (decrease) from investment operations  0.23  (0.26)  (0.01)    1.08  2.49 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.86)  (0.95)  (0.94)    (0.95)  (0.94) 
   Net realized gain    (0.01)      (0.06)   
Total dividends and distributions to Common Shareholders  (0.86)  (0.96)  (0.94)    (1.01)  (0.94) 
Net asset value, end of year  $ 13.53  $ 14.16  $ 15.38  $ 16.33  $ 16.26 
Market price, end of year  $ 13.59  $ 14.76  $ 16.90  $ 18.30  $ 15.98 
     Total Investment Return3             
Based on net asset value  2.50%  (2.12)%  (0.61)%    6.77%  17.60% 
Based on market price  (1.23)%  (7.15)%  (2.54)%    21.74%  22.22% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses4  1.72%  1.67%  1.47%    1.59%  1.57% 
Total expenses after fees waived and before fees paid indirectly4  1.36%  1.28%  1.03%    1.11%  1.10% 
Total expenses after fees waived and paid indirectly4  1.36%  1.28%  1.00%    1.06%  1.08% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
   and fees4,5  1.34%  1.26%  1.00%    1.06%  1.08% 
Net investment income4  8.55%  7.64%  7.11%    7.24%  7.44% 
Dividends paid to Preferred Shareholders  1.14%  1.97%  1.79%    1.50%  0.98% 
Net investment income to Common Shareholders  7.41%  5.67%  5.32%    5.74%  6.46% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 31,239  $ 32,584  $ 35,246  $ 37,263  $ 36,928 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 18,775  $ 19,200  $ 20,225  $ 20,225  $ 20,225 
Portfolio turnover  28%  17%  35%      12% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 66,600  $ 67,439  $ 68,578  $ 71,067  $ 70,649 

1 Based on average 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, 2009

57


Financial Highlights  BlackRock New York Insured Municipal Income Trust (BSE) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 13.95  $ 14.58  $ 15.34  $ 15.30  $ 14.18 
Net investment income  0.881  0.961  0.99    1.00  1.00 
Net realized and unrealized gain (loss)  (0.39)  (0.60)  (0.72)    (0.01)  1.16 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.11)  (0.25)  (0.26)    (0.24)  (0.14) 
   Net realized gain    (0.01)  (0.02)       
Net increase (decrease) from investment operations  0.38  0.10  (0.01)    0.75  2.02 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.72)  (0.70)  (0.70)    (0.71)  (0.90) 
   Net realized gain    (0.03)  (0.05)       
Total dividends and distributions to Common Shareholders  (0.72)  (0.73)  (0.75)    (0.71)  (0.90) 
Net asset value, end of year  $ 13.61  $ 13.95  $ 14.58  $ 15.34  $ 15.30 
Market price, end of year  $ 13.15  $ 13.26  $ 14.12  $ 14.70  $ 15.35 
     Total Investment Return2             
Based on net asset value  3.98%  0.80%  (0.06)%    5.46%  14.72% 
Based on market price  5.70%  (1.07)%  1.01%    0.73%  15.92% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.53%  1.34%  1.21%    1.25%  1.25% 
Total expenses after fees waived and before fees paid indirectly3  1.33%  1.09%  0.90%    0.92%  0.93% 
Total expenses after fees waived and paid indirectly3  1.33%  1.09%  0.89%    0.90%  0.92% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
   and fees3,4  1.05%  0.99%  0.89%    0.90%  0.92% 
Net investment income3  7.16%  6.59%  6.53%    6.63%  6.77% 
Dividends paid to Preferred Shareholders  0.88%  1.74%  1.69%    1.58%  0.96% 
Net investment income to Common Shareholders  6.28%  4.85%  4.84%    5.05%  5.81% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 88,141  $ 90,331  $ 94,314  $ 99,255  $ 98,853 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 40,575  $ 41,675  $ 56,000  $ 56,000  $ 56,000 
Portfolio turnover  23%  24%  30%    9%  21% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 79,309  $ 79,196  $ 67,107  $ 69,324  $ 69,138 

1 Based on average 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.

58 ANNUAL REPORT

AUGUST 31, 2009


Financial Highlights    BlackRock New York Municipal Bond Trust (BQH) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.71  $ 15.39  $ 16.02  $ 16.09  $ 15.09 
Net investment income  1.081  1.141  1.14    1.13  1.13 
Net realized and unrealized gain (loss)  (0.24)  (0.57)  (0.56)    (0.02)  0.95 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.14)  (0.29)  (0.29)    (0.25)  (0.15) 
   Net realized gain             (0.00)2  (0.01)         
Net increase from investment operations  0.70  0.27  0.29    0.86  1.93 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.85)  (0.93)  (0.92)    (0.93)  (0.93) 
   Net realized gain             (0.00)2  (0.02)         
Total dividends and distributions to Common Shareholders  (0.85)  (0.95)  (0.92)    (0.93)  (0.93) 
Net asset value, end of year  $ 14.56  $ 14.71  $ 15.39  $ 16.02  $ 16.09 
Market price, end of year  $ 14.32  $ 14.62  $ 16.32  $ 16.81  $ 15.85 
     Total Investment Return3             
Based on net asset value  5.97%  1.62%  1.52%    5.51%  13.56% 
Based on market price  4.87%  (4.76)%  2.60%    12.39%  20.83% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses4  1.61%  1.63%  1.47%    1.56%  1.56% 
Total expenses after fees waived and before fees paid indirectly4  1.30%  1.25%  1.02%    1.09%  1.08% 
Total expenses after fees waived and paid indirectly4  1.30%  1.25%  1.00%    1.06%  1.06% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
   and fees4,5  1.25%  1.23%  1.00%    1.06%  1.06% 
Net investment income  8.06%  7.45%  7.16%    7.16%  7.20% 
Dividends paid to Preferred Shareholders  1.01%  1.90%  1.81%    1.60%  0.97% 
Net investment income to Common Shareholders  7.05%  5.55%  5.35%    5.56%  6.23% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 40,204  $ 40,603  $ 42,160  $ 43,541  $ 43,460 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 22,125  $ 22,400  $ 24,200  $ 24,200  $ 24,200 
Portfolio turnover  30%  19%  23%    12%  3% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 70,431  $ 70,327  $ 68,560  $ 69,985  $ 69,899 

1 Based on average 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, 2009

59


Financial Highlights    BlackRock New York Municipal Income Trust II (BFY) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.28  $ 14.84  $ 15.47  $ 15.23  $ 14.16 
Net investment income  1.061  1.081  1.07    1.06  1.04 
Net realized and unrealized gain (loss)  (0.36)  (0.55)  (0.67)    0.14  1.07 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.15)  (0.29)  (0.30)    (0.25)  (0.15) 
   Net realized gain    (0.01)         
Net increase from investment operations  0.55  0.23  0.10    0.95  1.96 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.80)  (0.77)  (0.73)    (0.71)  (0.89) 
   Net realized gain    (0.02)         
Total dividends and distributions to Common Shareholders  (0.80)  (0.79)  (0.73)    (0.71)  (0.89) 
Net asset value, end of year  $ 14.03  $ 14.28  $ 14.84  $ 15.47  $ 15.23 
Market price, end of year  $ 14.00  $ 13.60  $ 14.22  $ 14.38  $ 14.02 
     Total Investment Return2             
Based on net asset value  5.23%  1.70%  0.69%    6.93%  14.46% 
Based on market price  10.26%  1.08%  3.80%    7.97%  8.91% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.33%  1.30%  1.25%    1.29%  1.30% 
Total expenses after fees waived and before fees paid indirectly3  1.16%  1.13%  1.01%    1.05%  1.05% 
Total expenses after fees waived and paid indirectly3  1.16%  1.13%  1.00%    1.02%  1.04% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
   and fees3,4  1.16%  1.13%  1.00%    1.02%  1.04% 
Net investment income3  8.17%  7.33%  6.92%    6.96%  7.04% 
Dividends paid to Preferred Shareholders  1.19%  1.94%  1.94%    1.66%  0.99% 
Net investment income to Common Shareholders  6.98%  5.39%  4.98%    5.30%  6.05% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 69,315  $ 70,544  $ 73,302  $ 76,393  $ 75,193 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 44,475  $ 44,650  $ 44,650  $ 44,650  $ 44,650 
Portfolio turnover  16%  12%  27%    22%  27% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 63,965  $ 64,508  $ 66,048  $ 67,775  $ 67,113 

1 Based on average 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.

60 ANNUAL REPORT

AUGUST 31, 2009


Financial Highlights    BlackRock Virginia Municipal Bond Trust (BHV) 
    Year Ended August 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 15.03  $ 15.57  $ 16.35  $ 16.34  $ 15.47 
Net investment income  1.021  1.111  1.11    1.10  1.10 
Net realized and unrealized gain (loss)  0.20  (0.45)  (0.68)    0.04  0.80 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.10)  (0.30)  (0.27)    (0.26)  (0.16) 
   Net realized gain  (0.05)    (0.02)       
Net increase from investment operations  1.07  0.36  0.14    0.88  1.74 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.89)  (0.90)  (0.87)    (0.87)  (0.87) 
   Net realized gain  (0.16)    (0.05)       
Total dividends and distributions to Common Shareholders  (1.05)  (0.90)  (0.92)    (0.87)  (0.87) 
Net asset value, end of year  $ 15.05  $ 15.03  $ 15.57  $ 16.35  $ 16.34 
Market price, end of year  $ 17.50  $ 19.50  $ 17.85  $ 18.45  $ 17.30 
     Total Investment Return2             
Based on net asset value  6.94%  1.59%  0.21%    5.30%  11.52% 
Based on market price  (4.16)%  14.97%  1.80%    12.23%  19.07% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.75%  1.70%  1.58%    1.68%  1.67% 
Total expenses after fees waived and before fees paid indirectly3  1.45%  1.34%  1.14%    1.22%  1.20% 
Total expenses after fees waived and paid indirectly3  1.45%  1.34%  1.09%    1.15%  1.18% 
Total expenses after fees waived and paid indirectly and excluding interest expense             
   and fees3,4  1.37%  1.31%  1.09%    1.15%  1.18% 
Net investment income3  7.43%  7.14%  6.85%    6.83%  6.90% 
Dividends paid to Preferred Shareholders  0.72%  1.90%  1.69%    1.60%  1.00% 
Net investment income to Common Shareholders  6.71%  5.24%  5.16%    5.23%  5.90% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 23,483  $ 23,347  $ 24,053  $ 25,097  $ 24,966 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 11,675  $ 12,175  $ 13,525  $ 13,525  $ 13,525 
Portfolio turnover  32%  11%  12%    5%  5% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of year  $ 75,286  $ 72,948  $ 69,463  $ 71,404  $ 71,158 

1 Based on average 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, 2009

61


Financial Highlights    The Massachusetts Health & Education Tax-Exempt Trust (MHE) 
    Period         
    January 1,         
  Year Ended  2008 to         
  August 31,  August 31,  Year Ended December 31,   
  2009  2008  2007  2006  2005  20041 
     Per Share Operating Performance             
Net asset value, beginning of period  $ 12.55  $ 13.10  $ 13.90  $ 13.59  $ 13.74  $ 13.91 
Net investment income2  0.83  0.59  0.92  0.90  0.83  0.82 
Net realized and unrealized gain (loss)  (0.43)  (0.58)  (0.82)  0.47  0.15  0.08 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.13)  (0.17)  (0.31)  (0.25)  (0.11)  (0.03) 
   Net realized gain        (0.03)  (0.01)  (0.01) 
Net increase (decrease) from investment operations  0.27  (0.16)  (0.21)  1.09  0.86  0.86 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.63)  (0.39)  (0.59)  (0.68)  (0.78)  (0.87) 
   Net realized gain      (0.00)3  (0.10)  (0.13)  (0.16) 
Total dividends and distributions to Common Shareholders  (0.63)  (0.39)  (0.59)  (0.78)  (0.91)  (1.03) 
Capital charges with respect to issuance of Preferred Shares          (0.10)   
Net asset value, end of period  $ 12.19  $ 12.55  $ 13.10  $ 13.90  $ 13.59  $ 13.74 
Market price, end of period  $ 12.00  $ 11.22  $ 11.95  $ 13.10  $ 13.60  $ 16.24 
     Total Investment Return3             
Based on net asset value  3.29%  (1.01)%4  (1.23)%  8.30%  5.46%  6.08% 
Based on market price  13.73%  (2.99)%4  (4.40)%  1.99%  (10.71)%  14.29% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses5  1.54%  1.77%6  1.47%  1.64%  1.30%  1.45% 
Total expenses after fees waived and paid indirectly5  1.54%  1.77%6  1.47%  1.64%  1.30%  1.45% 
Total expenses after fees waived and paid indirectly and excluding interest             
   expense and fees5,7  1.45%  1.73%6  1.47%  1.64%  1.30%  1.45% 
Net investment income5  7.50%  6.82%6  6.78%  6.61%  6.00%  5.97% 
Dividends paid to Preferred Shareholders  1.22%  2.03%6  2.27%  2.07%  0.76%  0.24% 
Net investment income Common Shareholders  6.28%  4.79%6  4.51%  4.54%  5.24%  5.73% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 28,575  $ 29,416  $ 30,717  $ 32,581  $ 31,792  $ 32,076 
Preferred Shares outstanding at $50,000 liquidation preference,             
   end of period (000)  $ 18,500  $ 18,500  $ 20,000  $ 20,000  $ 20,000  $ 10,000 
Portfolio turnover  12%  5%  18%  9%  16%  21% 
Asset coverage per Preferred Share at $50,000 liquidation preference,             
   end of period  $ 127,234  $ 129,523  $ 126,8358  $ 131,4848  $ 129,5068  $210,3788 

1 On September 1, 2004, Fund Asset Management, L.P. became the investment advisor, which combined with BlackRock, Inc. on September 26, 2006.
2 Based on average shares outstanding.
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 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 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.
8 Amounts have been recalculated to conform with current period presentation.

See Notes to Financial Statements.

62 ANNUAL REPORT

AUGUST 31, 2009


Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock California Insured Municipal Income Trust (“BCK”), BlackRock
MuniHoldings New York Insured Fund, Inc. (“MHN”), BlackRock New York
Insured Municipal Income Trust (“BSE”) (collectively the “Insured Trusts”),
BlackRock California Municipal Bond Trust (“BZA”), 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”) (collectively the “Bond Trusts”),
BlackRock California Municipal Income Trust II (“BCL”) and BlackRock New
York Municipal Income Trust II (“BFY”) (collectively the “Income II Trusts”),
and The Massachusetts Health & Education Tax-Exempt Trust (“MHE”)
(all, collectively the “Trusts” or individually as the “Trust”) are registered
under the Investment Company Act of 1940, as amended (the “1940 Act”)
as non-diversified, closed-end management investment companies. All
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, which may require the use of management accruals
and estimates. Actual results may differ from these estimates. The Board of
Directors and the Boards of Trustees of the Trusts are referred to throughout
this report as the “Board of Trustees” or the “Board.” Each Trust determines,
and makes available for publication the net asset value of its Common
Shares on a daily basis.

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

Valuation of Investments: Municipal investments (including commitments
to purchase such investments on a “when-issued” basis) are valued on the
basis of prices provided by dealers or pricing services selected under the
supervision of each Trust’s Board. 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 relationships between investments. Swap agreements
are valued by utilizing quotes received daily by each Trust’s pricing service
or through brokers, which are derived using daily swap curves and trades
of underlying securities. Financial futures contracts traded on exchanges
are valued at their last sale price. Short-term securities with maturities
less than 60 days may be valued at amortized cost, which approximates
fair value. Investments in open-end investment companies 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 are not available, the investment will
be valued by a method approved by each Trust’s 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 only 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-
delivery basis, the Trusts assume the rights and risks of ownership of the
security, 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 gain of the commitment, 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 the Trust (1) to cause the holders of a propor-
tional share of the floating rate certificates to tender their certificates at
par, and (2) to transfer, within seven days, a corresponding share of the
municipal bonds from the TOB to the Trust. The TOB may also be terminated
without the consent of the 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 quar-
terly 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 the 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 Trust’s
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 security is recorded by the Trusts
on an accrual basis. Interest expense incurred on the secured borrowing
and other expenses related to remarketing, administration and trustee
services to a TOB are reported as expenses of the Trusts. The 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, 2009, the aggregate value of the underly-
ing municipal bonds transferred to TOBs, the related liability for trust

ANNUAL REPORT

AUGUST 31, 2009

63


Notes to Financial Statements (continued)

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 
BCK  $ 21,366,590  $10,989,205  0.29% – 0.64% 
BZA  $ 13,730,882  $ 7,508,477  0.29% – 0.39% 
BCL  $ 42,240,468  $23,186,647  0.29% – 0.49% 
BZM  $ 3,101,520  $ 1,500,000  0.54% 
MHN  $108,448,315  $57,289,626  0.30% – 0.84% 
BLJ  $ 634,533  $ 419,783  0.45% 
BSE  $ 17,781,956  $10,408,504  0.30% – 0.84% 
BQH  $ 2,969,261  $ 1,549,115  0.30% – 0.49% 
BFY  $ 261,775  $ 159,940  0.30% 
BHV  $ 3,113,231  $ 1,499,291  0.16% – 0.29% 
MHE  $ 2,074,257  $ 1,339,595  0.54% 

For the year ended August 31, 2009, 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 
BCK  $ 6,630,432  1.65% 
BZA  $ 2,967,572  1.03% 
BCL  $12,684,137  1.11% 
BZM  $ 1,579,431  1.84% 
MHN  $58,071,966  1.97% 
BLJ  $ 258,308  2.48% 
BSE  $10,302,625  2.18% 
BQH  $ 1,413,511  1.30% 
BFY  $ 28,121  0.52% 
BHV  $ 1,153,941  1.17% 
MHE  $ 1,386,693  1.58% 

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

Zero-Coupon Bonds: Each Trust may invest in zero-coupon bonds, which
are normally issued at a significant discount from face value and do not
provide periodic interest payments. Zero-coupon bonds may experience
greater volatility in market value than similar maturity debt obligations
which provide 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 a Trust either delivers collateral or segregates assets in connec-
tion with certain investments (e.g., financial futures contracts and swap agree-
ments) each Trust will, consistent with SEC rules and/or certain interpretive
letters issued by the SEC, segregate collateral or designate on its 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 segregated.
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 (e.g., financial futures contracts
and swap agreements). As part of these agreements, when the value of these
investments achieves a previously agreed upon value (minimum transfer
amount), each party may be required to deliver additional collateral.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses on
security transactions are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend dates. Interest income is recognized
on the accrual method. Each Trust amortizes all premiums and discounts
on debt securities.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded
on the ex-dividend dates. 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 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.

Each Trust files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Trusts’ US federal tax returns remains open for each of the four
years ended August 31, 2009 (two years ended December 31, 2007 and
the period ended August 31, 2008 and year ended August 31, 2009 for
MHE). The statutes of limitations on the Trusts’ state and local tax returns
may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial
Accounting Standards No. 166, “Accounting for Transfers of Financial Assets
— an amendment of FASB Statement No. 140” (“FAS 166”), was issued.
FAS 166 is intended to improve the relevance, representational faithfulness
and comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows;
and a transferor’s continuing involvement, if any, in transferred financial
assets. FAS 166 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2009. Earlier application
is prohibited. The recognition and measurement provisions of FAS 166
must be applied to transfers occurring on or after the effective date.
Additionally, the disclosure provisions of FAS 166 should be applied to
transfers that occurred both before and after the effective date of FAS 166.
The impact of FAS 166 on the Trusts’ financial statement disclosures, if any,
is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by
each Trust’s Board, non-interested 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 other certain BlackRock
Closed-End Funds selected by the Independent Trustees. This has approxi-
mately the same economic effect for the Independent Trustees as if the
Independent Trustees had invested the deferred amounts directly in other
certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of each

64 ANNUAL REPORT

AUGUST 31, 2009


Notes to Financial Statements (continued)

Trust. Each Trust may, however, elect to invest in common shares of other
certain 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 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 that Trust. Other
operating expenses shared by several funds are prorated among those
funds on the basis of relative net assets or other appropriate methods.
Pursuant to the terms of certain custody agreements, custodian fees may
be reduced by amounts calculated on uninvested cash balances, which
are shown as fees paid indirectly in the Statements of Operations.

2. Derivative Financial Instruments:

The Trusts may engage in various portfolio investment strategies both to
increase the returns of the Trusts and to economically hedge, or protect,
their exposure to interest rate risk. Losses may arise if the value of the con-
tract decreases due to an unfavorable change in the value of the underly-
ing security, or if the counterparty does not perform under the contract. The
Trusts may mitigate counterparty risk through master netting agreements
included within an International Swap and Derivatives Association, Inc.
(“ISDA”) Master Agreement between a Trust and each of its counterparties.
The ISDA Master Agreement allows each Trust to offset with its counterparty
certain derivative financial instruments’ payables and/or receivables with
collateral held with each counterparty. The amount of collateral moved
to/from applicable counterparties is based upon minimum transfer
amounts of up to $500,000. To the extent amounts due to the Trusts from
their counterparties are not fully collateralized contractually or otherwise,
the Trusts bear the risk of loss from counterparty non-performance. See
Note 1 “Segregation and Collateralization” for information with respect to
collateral practices.

The Trusts’ maximum risk of loss from counterparty credit risk on over-the-
counter derivatives is generally the aggregate unrealized gain in excess
of any collateral pledged by the counterparty to the Trusts. Certain ISDA
Master Agreements allow counterparties to over-the-counter derivatives to
terminate derivative contracts prior to maturity in the event a Trust’s net
assets decline by stated percentages or a Trust fails to meet the terms of
its ISDA Master Agreements, which would cause the Trust to accelerate pay-
ment of any net liability owed to the counterparty. 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 may purchase or sell financial
futures contracts and options on financial futures contracts to gain expo-
sure 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 contract, 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.

Swaps: The Trusts may enter into swap agreements, in which a Trust
and a counterparty agree to make periodic net payments on a specified
notional amount. These periodic payments received or made by the Trusts
are recorded in the Statements of Operations as realized gains or losses,
respectively. Swaps are marked-to-market daily and changes in value are
recorded as unrealized appreciation (depreciation). When the swap is
terminated, the Trusts will record a realized gain or loss equal to the dif-
ference between the proceeds from (or cost of) the closing transaction
and the Trusts’ basis in the contract, if any. Such risks involve the possi-
bility that there will be no liquid market for these agreements, that the
counterparty to the agreements may default on its obligation to perform
or disagree as to the meaning of the contractual terms in the agreements,
and that there may be unfavorable changes in interest rates and/or
market values associated with these transactions.

Forward interest rate swaps — The Trusts may enter into forward interest
rate swaps to manage duration, the yield curve or interest rate risk
by economically hedging the value of the fixed rate bonds which may
decrease when interest rates rise (interest rate risk). In a forward inter-
est rate swap, each Trust and the counterparty agree to make periodic
net payments on a specified notional contract amount, commencing
on a specified future effective date, unless terminated earlier. The Trusts
generally intend to close each forward interest rate swap before the
effective date specified in the agreement and therefore avoid entering
into the interest rate swap underlying each forward interest rate swap.

Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 133, “Accounting for Derivative Instruments and Hedging Activities”

The Effect of Derivative Instruments on the Statements of Operations Year Ended August 31, 2009*

Net Realized Gain (Loss) From Derivatives Recognized in Income

  BCK  BZA  BCL  MHN  BSE    BQH  BFY  MHE 
Interest rate contracts:                   
   Financial futures contracts  $ 29,468  $ 23,574  $ 47,148  $ 67,701  $ 12,943  $ 5,974  $ 10,952   
   Forward interest rate swaps      (521,411)            $ (99,000) 
Total  $ 29,468  $ 23,574  $(474,263)  $ 67,701  $ 12,943  $ 5,974  $ 10,952  $ (99,000) 
Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income

  BCL  MHE               
Interest rate contracts:                   
   Forward interest rate swaps  $ 375,543  $ 83,017               

* As of August 31, 2009, there were no financial futures contracts or forward interest rate swaps outstanding. During the year ended August 31, 2009, the Trusts had limited activity
in these transactions.

ANNUAL REPORT

AUGUST 31, 2009

65


Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America
Corporation (“BAC”) are the largest stockholders of BlackRock, Inc.
(“BlackRock”). BAC became a stockholder of BlackRock following its acqui-
sition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009.
Prior to that date, both PNC and Merrill Lynch were considered affiliates of
the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains
an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest
of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

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 an annual rate of 0.50%
for MHE, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for
the Bond Trusts. Each Trust’s monthly fees are based upon average weekly
net assets except MHN and MHE, which are based upon average daily net
assets. Average daily or weekly net assets is the average daily or weekly
value of each Trust’s total assets minus the sum of its accrued liabilities.

The Manager has voluntarily agreed to waive its advisory fee on the pro-
ceeds of Preferred Shares and TOBs that exceed 35% of the average daily
net assets of MHN. For the year ended August 31, 2009, the Manager
waived $750,376, which is included in fees waived by advisor in the
Statements of Operations.

The Manager has voluntarily agreed to waive a portion of the investment
advisory fee for certain other funds. With respect to BCK and BSE, the
waiver, as a percentage of average weekly net assets is as follows: 0.15%
through October 2008, 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: 0.20% through April 2009,
0.15% through April 2010, 0.10% through April 2011 and 0.05% through
April 2012. With respect to the Income II Trusts, the waiver, as a percentage
of average weekly net assets, is 0.10% through July 2009, and 0.05%
through July 2012. For the year ended August 31, 2009, the Manager
waived the following amounts, which are included in fees waived by
advisor in the Statements of Operations:

  Fees Waived 
  by Manager 
BCK  $120,102 
BZA  $137,778 
BCL  $163,382 
BZM  $ 79,168 
BLJ  $ 86,770 
BSE  $142,811 
BQH  $106,992 
BFY  $103,629 
BHV  $ 63,057 

Additionally, the Manager has agreed to waive its advisory fees by the
amount of investment advisory fees each Trust pays to the Manager indi-
rectly through its investment in affiliated money market funds, which are
included in fees waived by advisor in the Statements of Operations. For the
year ended August 31, 2009, the amounts waived were as follows:

  Fees Waived 
  by Manager 
BCK  $ 23,867 
BZA  $ 10,690 
BCL  $ 30,697 
BZM  $ 5,682 
MHN  $ 49,641 
BLJ  $ 12,149 
BSE  $ 12,225 
BQH  $ 8,931 
BFY  $ 7,074 

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

For the year ended August 31, 2009, the Trusts reimbursed the Manager for
certain accounting services in the following amounts, which are included in
accounting services in the Statements of Operations:

  Reimbursement 
BCK  $ 2,213 
BZA  $ 1,574 
BCL  $ 3,421 
BZM  $ 887 
MHN  $14,061 
BLJ  $ 954 
BSE  $ 2,634 
BQH  $ 1,116 
BFY  $ 2,251 
BHV  $ 705 
MHE  $ 934 

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, 2009 were as follows:

  Purchases  Sales 
BCK  $ 68,622,326  $ 67,256,702 
BZA  $ 41,935,060  $ 40,969,301 
BCL  $105,574,078  $104,252,096 
BZM  $ 4,242,707  $ 3,618,301 
MHN  $123,353,204  $147,996,487 
BLJ  $ 12,387,840  $ 13,295,234 
BSE  $ 29,517,296  $ 36,478,866 
BQH  $ 17,940,893  $ 18,470,768 
BFY  $ 20,206,961  $ 16,894,659 
BHV  $ 12,559,749  $ 10,647,110 
MHE  $ 4,891,650  $ 9,942,722 

66 ANNUAL REPORT

AUGUST 31, 2009


Notes to Financial Statements (continued)

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 31,2009 attributable to amortization methods on fixed income securities, the book to tax difference on the
sale of residual interests in tender option bond trusts, the expiration of capital loss carryforwards and the tax classification of distributions received from a
regulated investment company were reclassified to the following accounts:

  BCK  BZA  BCL  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Paid-in capital          $(17,253,223)          $ (942)        
Undistributed net investment                       
   income  $(2,030)  $(6)    $(206)  $ 533,905  $(193)  $(1,039)  $(56)    $(66,893)  $(712) 
Accumulated net realized                       
   gain (loss)  $ 2,030  $ 6    $ 206  $ 16,719,318  $ 193  $ 1,039  $ 56    $ 67,835  $ 712 

The tax character of distributions paid during the fiscal years ended August 31, 2009 and August 31, 2008, the fiscal period ended August 31, 2008, and
the fiscal year ended December 31, 2007 was as follows:

  BCK  BZA  BCL  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Tax-exempt income                       
 8/31/2009  $4,332,676  $3,154,193  $6,884,006  $1,888,814 $24,970,495  $2,307,460  $5,352,845  $2,707,205  $4,685,682  $1,540,904  $1,753,424 
 8/31/2008  5,060,164  3,981,070  8,339,031  2,261,125 30,049,997  2,765,306  6,143,118  3,241,520  5,062,849  1,789,269   
 1/1/2008 – 8/31/2008                      1,326,955 
 1/1/2007 – 12/31/2007                      2,096,949 
Ordinary income                       
 8/31/2009                         — $  97,687          $ 76,533  $ 31,570 
 8/31/2008    $ 152,539  $ 174,151  $ 85,254    $ 86,258    $ 108,227  $ 172,985  $ 63,559   
 1/1/2008 – 8/31/2008                       
 1/1/2007 – 12/31/2007                      2,691 
Long-term capital gains                       
 8/31/2009    $ 14,864    $ 8,921        $ 14,672    $ 255,705   
 8/31/2008        40,379    $ 28,734  $ 303,996  81,671  $ 120,168     
 1/1/2008 – 8/31/2008                       
 1/1/2007 – 12/31/2007                      $ 2,944 
Total distributions                       
 8/31/2009  $4,332,676  $3,169,057  $6,884,006  $1,897,735 $25,068,182  $2,307,460  $5,352,845  $2,721,877  $4,685,682  $1,873,142  $1,784,994 
 8/31/2008  $5,060,164  $4,133,609  $8,513,182  $2,386,758 $30,049,997  $2,880,298  $6,447,114  $3,431,418  $5,356,002  $1,852,828   
 1/1/2008 – 8/31/2008                      $1,326,955 
 1/1/2007 – 12/31/2007                      $2,102,584 
As of August 31, 2009 the tax components of accumulated earnings (losses) were as follows:           
  BCK  BZA  BCL  BZM  MHN  BLJ  BSE  BQH  BFY  BHV  MHE 
Undistributed                       
   tax-exempt income  $ 811,709  $ 512,687  $ 1,506,657  $ 235,351 $  5,389,051 $ 267,604  $1,062,688  $ 415,832  $1,041,665  $ 322,995 $ 418,349 
Undistributed ordinary                       
   income            25,017    40,487      91,140 
Undistributed long-term net                       
   capital gains                231,756    261,647   
Capital loss carryforwards  (594,868)    (3,885,639)  (150,609) (23,714,528)  (345,064)  (1,631,721)    (707,643)    (696,782) 
Net unrealized                       
   gains (losses)*  (1,925,521)  572,478  (1,132,513)  (815,238) (15,504,647)  (1,442,522)  (3,181,108)  312,998  (1,097,842)  734,320  (921,599) 
Total accumulated net                       
   earnings (losses)  $(1,708,680)  $1,085,165  $(3,511,495)  $(730,496)$(33,830,124)$(1,494,965) $(3,750,141)  $1,001,073  $ (763,820) $1,318,962 $(1,108,892) 

* The differences between book-basis and tax-basis net unrealized gains (losses) 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, the deferral of post-October capital losses for tax pur-
poses, 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 com-
pensation to trustees, and other book-tax temporary differences.

As of August 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires  BCK       BCL  BZM  MHN  BLJ  BSE  BFY  MHE 
2010                 
2011                 
2012    $3,224,992             
2013  $242,956      $15,054,033         
2014        1,097,743         
2015    360,789    2,782,666      $ 70,160  $ 35,869 
2016  351,912  113,830    710,089  $ 25,168    383,137  285,683 
2017    186,028  $150,609  4,069,997  319,896  $1,631,721  254,346  375,230 
Total  $594,868  $3,885,639  $150,609  $23,714,528  $345,064  $1,631,721  $707,643  $696,782 

ANNUAL REPORT

AUGUST 31, 2009

67


Notes to Financial Statements (continued)

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 concentration in specific states.

Many municipalities insure repayment of their bonds, which reduces the
risk of loss due to issuer default. 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 (credit
risk). The value of securities held by the Trusts may decline in response to
certain events, including those directly involving the issuers whose securi-
ties are owned by the Trusts; conditions affecting the general economy;
overall market changes; local, regional or global political, social or eco-
nomic instability; and currency and interest rate and price fluctuations.
Similar to credit risk, the Trusts may be exposed to counterparty risk, or the
risk that an entity with which the Trusts have unsettled or open transactions
may default. Financial assets, which potentially expose the Trusts to credit
and counterparty risks, consist principally of investments and cash due
from counterparties. The extent of the Trusts’ exposure to credit and coun-
terparty risks with respect to these financial assets is approximated by their
value recorded in the Trusts’ Statements of Assets and Liabilities.

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, 2009
and 2008 increased by the following amounts as a result of dividend
reinvestment:

       Year Ended 
       August 31, 
  2009  2008 
BCK    1,344 
BZA    22,468 
BCL    5,688 
BZM  9,282  8,599 
BLJ  7,624  10,138 
BSE  2,972  5,180 
BQH  1,342  20,407 
BFY  1,492  1,272 
BHV  7,591  8,252 

Shares issued and outstanding remained constant for MHN for the years
ended August 31, 2009 and 2008. Shares issued and outstanding
remained constant for MHE for the year ended August 31, 2009, the
period January 1, 2008 to August 31, 2008 and the year ended
December 31, 2007.

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 Statements of
Preferences/Articles Supplementary/Certificates of Designation/Certificate of
Vote of Trustees, as applicable (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
holders of Preferred Shares, voting as a separate class, are also entitled
to elect two 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 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, effec-
tive yields and reset frequency as of August 31, 2009:

        Reset 
    Preferred  Effective  Frequency 
  Series  Shares   Yield         Days 
BCK  F-7  1,253   0.49%           7 
BZA  F-7  898   0.49%           7 
BCL  T-7  931   0.53%           7 
  R-7  931   0.49%           7 
BZM  R-7  640   0.49%           7 
MHN  A  1,479   0.52%           7 
  B  1,479   0.49%           7 
  C  2,366   0.53%           7 
  D  2,864   0.49%           7 
  E  1,557   0.53%           7 
BLJ  M-7  751   0.53%           7 
BSE  R-7  1,623   0.49%           7 
BQH  T-7  885   0.53%           7 
BFY  W-7  1,779   0.52%           7 
BHV  R-7  467   0.49%           7 
MHE  A  185   0.52%           7 
  B  185   0.53%           7 

68 ANNUAL REPORT

AUGUST 31, 2009


Notes to Financial Statements (continued)

Dividends on 7-day Preferred Shares are cumulative at a rate which is
reset every 7 days based on the results of an auction. If the Preferred
Shares fail to clear the auction on an auction date, the affected 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
Preferred Shares are successfully auctioned. The maximum applicable rate
on Preferred Shares is the higher of 110% of the AA commercial paper rate
or 110% of 90% of the Kenny S&P 30-day High Grade Index rate 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,
2009 were as follows:

  Series  Low  High  Average 
BCK  F-7  0.35%  11.73%  1.64% 
BZA  F-7  0.35%  11.73%  1.64% 
BCL  T-7  0.40%  11.35%  1.64% 
  R-7  0.35%  12.26%  1.64% 
BZM  R-7  0.35%  12.26%  1.68% 
MHN  A  0.38%  12.57%  1.70% 
  B  0.35%  12.26%  1.68% 
  C  0.43%  10.21%  1.71% 
  D  0.35%  11.73%  1.65% 
  E  0.40%  11.35%  1.67% 
BLJ  M-7  0.43%  10.21%  1.66% 
BSE  R-7  0.35%  12.26%  1.67% 
BQH  T-7  0.40%  11.35%  1.67% 
BFY  W-7  0.38%  12.57%  1.69% 
BHV  R-7  0.35%  12.26%  1.67% 
MHE  A  0.38%  12.57%  1.70% 
  B  0.40%  11.35%  1.74% 

Since February 13, 2008, the Preferred Shares of each Trust 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 0.35% to
12.57%. 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 each Trust’s Preferred Shares may not
occur for some time, if ever, and even if liquidity does resume, Preferred
Shareholders 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
declaration, distribution or purchase, asset coverage with respect to the
outstanding Preferred Shares is less than 200%.

Prior to December 22, 2008, the Trusts paid commissions to certain
broker-dealers at the end of each auction at an annual rate of 0.25%,
calculated on the aggregate principal amount. In December 22, 2008,
commissions paid to broker-dealers on preferred shares that experience
a failed auction were reduced to 0.15% on the aggregate principal amount.
Subsequently, certain broker-dealers have individually agreed to further
reduce commissions for failed auctions. The Trusts will continue to pay
commissions of 0.25% on the aggregate principal amount of all shares
that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith
Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commis-
sions as follows from September 1, 2008 to December 31, 2008 (after
which time Merrill Lynch was no longer considered an affiliate):

  Commissions 
BCK  $ 739 
BZA  $ 1,811 
BCL  $ 10,139 
BZM  $ 1,116 
MHN  $101,126 
BLJ  $ 3,984 
BSE  $ 1,653 
BQH  $ 2,602 
BFY  $ 12,083 
BHV  $ 434 
MHE  $ 10,877 

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

    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
BCK  F-7  7/13/09  249  $6,225,000 
BZA  F-7  7/13/09  221  $5,525,000 
BCL  T-7  7/08/09  264  $6,600,000 
  R-7  7/10/09  264  $6,600,000 
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 

During the year ended August 31, 2008 (period January 1, 2008 to
August 31, 2008 for MHE), the Trusts announced the following redemptions
of Preferred Shares at a price of $25,000 ($50,000 for MHE) per share
plus any accrued and unpaid dividends through the redemption dates:

ANNUAL REPORT

AUGUST 31, 2009

69


Notes to Financial Statements (concluded)

    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
BCK  F-7  6/30/08  358  $ 8,950,000 
BZA  F-7  6/30/08  80  $ 2,000,000 
BCL  T-7  6/25/08  244  $ 6,100,000 
  R-7  6/27/08  244  $ 6,100,000 
BZM  R-7  6/27/08  80  $ 2,000,000 
MHN  A  6/26/08  365  $ 9,125,000 
  B  6/27/08  365  $ 9,125,000 
  C  6/24/08  584  $14,600,000 
  D  6/23/08  707  $17,675,000 
  E  6/25/08  384  $ 9,600,000 
BLJ  M-7  6/24/08  41  $ 1,025,000 
BSE  R-7  6/27/08  573  $14,325,000 
BQH  T-7  6/25/08  72  $ 1,800,000 
BHV  R-7  6/27/08  54  $ 1,350,000 
MHE  A  6/12/08  15  $ 750,000 
  B  6/11/08  15  $ 750,000 

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

Shares issued and outstanding remained constant for BZM during the
year ended August 31, 2009. Shares issued and outstanding remained
constant during the year ended August 31, 2008 for BFY. Shares issued
and outstanding remained constant for MHE for the year ended August 31,
2009 and the year ended December 31, 2007.

8. Plan of Reorganization:

On May 28, 2009, the Boards of each of BCK, BZA and BCL approved
agreements and plans of reorganization, subject to shareholder approval
and certain other conditions, whereby each of BCK, BZA, BCL together
with BlackRock California Investment Quality Municipal Trust Inc. (RAA)
(each, a “Target Fund”) will merge with and into a new wholly owned sub-
sidiary of BlackRock California Municipal Income Trust (“BFZ”) (each,
a “Reorganization”). If approved, the mergers are expected to be con-
cluded in the fourth quarter of 2009. The outstanding Common Shares
and Preferred Shares held by each Target Fund’s shareholders will be
exchanged for Common Shares or Preferred Shares of BFZ, respectively,
pursuant to each Reorganization.

9. Subsequent Events:

Each Trust paid a net investment income dividend on October 1, 2009 to
Common Shareholders of record on September 15, 2009 as follows:

  Common 
  Dividend 
  Per Share 
BCK  $0.0660 
BZA  $0.0770 
BCL  $0.0745 
BZM  $0.0679 
MHN  $0.0685 
BLJ  $0.0755 
BSE  $0.0655 
BQH  $0.0780 
BFY  $0.0800 
BHV  $0.0800 
MHE  $0.0620 

The dividends declared on Preferred Shares for the period September 1,
2009 to September 30, 2009 were as follows:

    Dividends 
  Series  Declared 
BCK  F-7  $11,878 
BZA  F-7  $ 8,513 
BCL  T-7  $ 9,034 
  R-7  $ 8,941 
BZM  R-7  $ 6,140 
MHN  A  $14,334 
  B  $14,189 
  C  $22,210 
  D  $27,150 
  E  $15,115 
BLJ  M-7  $ 7,050 
BSE  R-7  $15,570 
BQH  T-7  $ 8,591 
BFY  W-7  $17,241 
BHV  R-7  $ 4,480 
MHE  A  $ 3,588 
  B  $ 3,592 

Management’s evaluation of the impact of all subsequent events on the
Trusts’ financial statements was completed through October 29, 2009, the
date the financial statements were issued.

70 ANNUAL REPORT

AUGUST 31, 2009


Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors/Trustees of:
BlackRock California Insured Municipal Income Trust
BlackRock California Municipal Bond Trust
BlackRock California Municipal Income Trust II
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
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 California Insured
Municipal Income Trust, BlackRock California Municipal Bond Trust,
BlackRock California Municipal Income Trust II, 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 and BlackRock Virginia
Municipal Bond Trust, as of August 31, 2009, 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 five years in the period then ended. We have also
audited the accompanying statement of assets and liabilities, including
the schedule of investments, of The Massachusetts Health & Education
Tax-Exempt Trust as of August 31, 2009, and the related statement of
operations for the year then ended, the statements of changes in net
assets for the year then ended, for the period January 1, 2008 to August
31, 2008, and for the year ended December 31, 2007, and the financial
highlights for the year then ended, for the period January 1, 2008 to
August 31, 2008 and for each of the four years in the period ended
December 31, 2007. 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 report-
ing. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate
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, 2009, 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 position of
BlackRock California Insured Municipal Income Trust, BlackRock California
Municipal Bond Trust, BlackRock California Municipal Income Trust II,
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 and
BlackRock Virginia Municipal Bond Trust as of August 31, 2009, 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 high-
lights for each of the five years in the period then ended, and for The
Massachusetts Health & Education Tax-Exempt Trust as of August 31,
2009, the result of its operations for the year then ended, the changes
in its net assets for the year then ended, for the period January 1, 2008
to August 31, 2008, and for the year ended December 31, 2007, and
the financial highlights for the year then ended, for the period January 1,
2008 to August 31, 2008 and for each of the four years in the period
ended December 31, 2007, in conformity with accounting principles
generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 29, 2009

ANNUAL REPORT

AUGUST 31, 2009

71


Important Tax Information

All of the net investment income distributions paid by BCK, BCL, BLJ, BSE,
and BFY during the taxable year ended August 31, 2009 qualify as tax-
exempt interest dividends for Federal income tax purposes.

The following table summarizes the taxable per share distributions paid
by BZA, BZM, MHN, BQH, BHV and MHE during the taxable year ended
August 31, 2009.

  Payable  Ordinary  Long-Term 
BZA  Date  Income  Capital Gains 
Common Shareholders  12/31/08    $0.002917 
Preferred Shareholders:       
   Series F-7  12/15/08    $4.40 
BZM       
Common Shareholders  12/31/08    $0.003211 
Preferred Shareholders:       
   Series R-7  12/19/08    $3.69 
MHN       
Common Shareholders  12/31/08  $0.002082   
Preferred Shareholders:       
   Series A  12/18/08  $3.32   
   Series B  12/12/08  $3.27   
   Series C  12/09/08  $3.34   
   Series D  12/15/08  $3.32   
   Series E  12/10/08  $3.33   
BQH       
Common Shareholders  12/31/08    $0.003939 
Preferred Shareholders:       
   Series T-7  12/10/08    $4.24 

  Payable  Ordinary  Long-Term 
BHV  Date  Income  Capital Gains 
Common Shareholders  12/31/08  $0.036340  $0.122726 
Preferred Shareholders:       
   Series R-7  12/12/08  $2.42     $ 8.20 
  12/19/08  $2.05     $ 6.92 
  12/26/08  $2.45     $ 8.30 
  1/2/09  $3.14     $10.61 
  1/9/09  $2.29     $ 7.74 
  1/16/09  $1.42     $ 4.80 
  1/23/09  $1.06     $ 3.60 
  1/30/09  $1.18     $ 3.96 
  2/6/09  $1.28     $ 4.34 
  2/13/09  $1.11     $ 3.78 
  2/20/09  $1.31  $ 4.42 
  2/27/09  $1.64     $ 5.53 
  3/6/09  $1.62     $ 5.43 
  3/13/09  $1.31     $ 4.42 
  3/20/09  $1.39     $ 4.71 
  3/27/09  $1.36     $ 4.62 
  4/3/09  $1.34     $ 4.52 
  4/10/09  $1.72     $ 5.79 
  4/17/09  $0.74     $ 2.47 
  4/24/09  $1.31     $ 4.42 
  5/1/09  $1.42     $ 4.80 
  5/8/09  $1.37     $ 4.60 
  5/15/09  $1.15     $ 3.88 
  5/22/09  $1.06     $ 3.60 
  5/29/09  $1.05     $ 3.50 
  6/5/09  $0.92     $ 3.14 
  6/12/09  $0.35     $ 1.16 
MHE       
Common Shareholders  12/31/08  $0.008803   
Preferred Shareholders:       
   Series A  12/3/08  $29.55   
   Series B  12/2/08  $29.57   

All other net investment income distributions paid by BZA, BZM, MHN, BQH,
BHV and MHE during the taxable year ended August 31, 2009 qualify as
tax-exempt interest dividends for Federal income tax purposes.

72 ANNUAL REPORT

AUGUST 31, 2009


Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors or 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 California Insured
Municipal Income Trust (“BCK”), BlackRock California Municipal Bond Trust
(“BZA”), BlackRock California Municipal Income Trust II (“BCL”), 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 BCK, BZA, BCL, BZM, MHN, BLJ, BSE, BQH, BFY
and BHV, each a “Trust” and, collectively, the “Trusts”) met on April 14,
2009 and May 28-29, 2009 to consider the approval of its respective
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 its respective
Trust, the Manager and BlackRock Financial Management, Inc. or
BlackRock Investment Management, LLC, as applicable (each a “Sub-
Advisor”). The Manager and the Sub-Advisor are referred to herein as
“BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements
are referred to herein as the “Agreements.” Unless otherwise indicated,
references to actions taken by the “Board” or the “Boards” shall mean
each Board acting independently with respect to its respective Trust.

Activities and Composition of the Board

Each Board consists of twelve individuals, ten of whom are not “interested
persons” of the Trusts as defined in the Investment Company Act of 1940,
as amended (the “1940 Act”) (the “Independent Board Members”). The
Board Members of each Trust are responsible for the oversight of the oper-
ations of such Trust and perform the various duties imposed on the direc-
tors of investment companies by the 1940 Act. The Independent Board
Members have retained independent legal counsel to assist them in con-
nection with their duties. The Chairman of each Board is an Independent
Board Member. Each Board has 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 has one interested Board
Member) and is chaired by an Independent Board Member. In addition,
each Board has established an Ad Hoc Committee on Auction Market
Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the
continuation of the Agreements on an annual basis. In connection with
this process, each Board assessed, among other things, the nature, scope
and quality of the services provided to its respective Trust by the personnel
of BlackRock and its affiliates, including investment management, admin-
istrative and shareholder services, oversight of fund accounting and

custody, marketing services and assistance in meeting applicable legal
and regulatory requirements.

Throughout the year, the Boards, acting directly and through their commit-
tees, consider at each of their meetings factors that are relevant to their
annual consideration of the renewal of the Agreements, including the serv-
ices and support provided by BlackRock to the Trusts and their sharehold-
ers. Among the matters the Boards considered were: (a) investment
performance for one-, three- and five-year periods, as applicable, against
peer funds, and applicable benchmarks, if any, as well as senior manage-
ment and portfolio managers’ analysis of the reasons for any outperfor-
mance or underperformance against its peers; (b) fees, including advisory
fees, administration fees with respect to MHE, and other amounts paid to
BlackRock and its affiliates by the Trusts for services such as call center
and fund accounting; (c) Trust operating expenses; (d) the resources
devoted to, and compliance reports relating to, the Trusts’ investment
objectives, policies and restrictions; (e) the Trusts’ compliance with their
Code of Ethics and compliance policies and procedures; (f) the nature,
cost and character of non-investment 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 poli-
cies approved by the Boards; (i) execution quality of portfolio transactions;
(j) BlackRock’s implementation of the Trusts’ valuation and liquidity proce-
dures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board
requested and received materials specifically relating to the Agreements.
Each Board is engaged in an ongoing process with BlackRock to continu-
ously 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 pre-
pared by Lipper, Inc. (“Lipper”) on Trust fees and expenses, and the invest-
ment 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 prof-
itability of the Agreements to BlackRock and a discussion of fall-out bene-
fits 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, as well as the performance of
such other clients; (d) the impact of economies of scale; (e) a summary
of aggregate amounts paid by each Trust to BlackRock; and (f) an internal
comparison of management fees classified by Lipper, if applicable.

At an in-person meeting held on April 14, 2009, each Board reviewed
materials relating to its consideration of the Agreements. As a result of the
discussions that occurred during the April 14, 2009 meeting, the Boards
presented BlackRock with questions and requests for additional informa-
tion and BlackRock responded to these requests with additional written
information in advance of the May 28-29, 2009 Board meeting.

ANNUAL REPORT

AUGUST 31, 2009

73


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

At an in-person meeting held on May 28-29, 2009, each Trust’s Board,
including the Independent Board Members, unanimously approved the
continuation of the Advisory Agreement between the Manager and such
Trust and the Sub-Advisory Agreement between such Trust, the Manager
and each Trust’s respective Sub-Advisor, each for a one-year term ending
June 30, 2010. The Boards considered all factors they believed relevant
with respect to the Trusts, including, among other factors: (a) the nature,
extent and quality of the services provided by BlackRock; (b) the invest-
ment performance of the Trusts and BlackRock portfolio management;
(c) the advisory fee and the cost of the services and profits to be realized
by BlackRock and certain affiliates from the relationship with the Trusts;
(d) economies of scale; and (e) other factors.

Each Board also considered other matters it deemed important to the
approval process, such as services related to the valuation and pricing
of its respective Trust’s portfolio holdings, direct and indirect benefits to
BlackRock and its affiliates and significant shareholders from their relation-
ship with such Trust and advice from independent legal counsel with
respect to the review process and materials submitted for the Board’s
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: Each Board, including its
Independent Board Members, reviewed the nature, extent and quality of
services provided by BlackRock, including the investment advisory services
and the resulting performance of its respective Trust. Throughout the year,
each Board compared its respective Trust’s performance to the perform-
ance of a comparable group of closed-end funds, and the performance of
at least one relevant benchmark, if any. The Boards met with BlackRock’s
senior management personnel responsible for investment operations,
including the senior investment officers. Each Board also reviewed the
materials provided by its respective Trust’s portfolio management team
discussing such Trust’s performance and such Trust’s investment objective,
strategies and outlook.

Each Board considered, among other factors, the number, education and
experience of BlackRock’s investment personnel generally and its respec-
tive 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
and BlackRock’s approach to training and retaining portfolio managers and
other research, advisory and management personnel. Each Board also
reviewed a general description of BlackRock’s compensation structure with
respect to its respective Trust’s portfolio management team and
BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, each Board considered the quality of the
administrative and non-investment advisory services provided to its respec-
tive Trust. BlackRock and its affiliates and significant shareholders provide
the Trusts with certain administrative and other services (in addition to any

such services provided to the Trusts by third parties) and officers and other
personnel as are necessary for the operations of the Trusts. In addition to
investment advisory services, BlackRock and its affiliates provide the Trusts
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
the Trusts; (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) provid-
ing legal and compliance support; and (viii) performing other administra-
tive functions necessary for the operation of the Trusts, such as tax
reporting, fulfilling regulatory filing requirements, and call center services.
The Boards reviewed the structure and duties of BlackRock’s fund adminis-
tration, 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 Trust and BlackRock: Each Board,
including its Independent Board Members, also reviewed and considered
the performance history of its respective Trust. In preparation for the April
14, 2009 meeting, the Boards were provided with reports, independently
prepared by Lipper, which included a comprehensive analysis of each
Trust’s performance. The Boards also reviewed a narrative and statistical
analysis of the Lipper data that was prepared by BlackRock, which ana-
lyzed various factors that affect Lipper’s rankings. In connection with its
review, each Board received and reviewed information regarding the invest-
ment performance of its respective Trust as compared to a representative
group of similar funds as determined by Lipper and to all funds in such
Trust’s applicable Lipper category and customized peer group selected by
BlackRock, as applicable. Each Board was provided with a description of
the methodology used by Lipper to select peer funds. Each Board regularly
reviews the performance of its respective Trust throughout the year.

The Board of each of BCK, MHN, BSE, BFY and MHE noted that in general,
BCK, MHN, BSE, BFY and MHE performed better than their respective Peers
in that the performance of each of BCK, MHN, BSE, BFY, and MHE was at
or above the median of their respective customized Lipper peer group
composite in two of the one-, three- and five-year periods reported.

The Board of BLJ noted that in general, BLJ performed better than its
Peers in that BLJ’s performance was at or above the median of its Lipper
performance universe composite in two of the one-, three- and five-year
periods reported.

The Board of each of BZA, BCL, BZM, BQH and BHV noted that in general,
BZA, BCL, BZM, BQH, and BHV performed better than their respective Peers
in that the performance of each BZA, BCL, BZM, BQH and BHV was at or
above the median of their respective customized Lipper peer group com-
posite in each of the one-, three- and five-year periods reported.

74 ANNUAL REPORT

AUGUST 31, 2009


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

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 Trust: Each Board, including its Independent Board
Members, reviewed its respective Trust’s contractual advisory fee rates com-
pared with the other funds in its respective Lipper category. Each Board
also compared its respective Trust’s total expenses, as well as actual man-
agement fees, to those of other comparable funds. Each Board considered
the services provided 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
financial condition and profitability with respect to the services it provided
the Trusts. The Boards were also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by BlackRock
for services provided to the Trusts. The Boards reviewed BlackRock’s prof-
itability with respect to the Trusts and other funds the Boards currently
oversee for the year ended December 31, 2008 compared to available
aggregate profitability data provided for the year ended December 31,
2007. The Boards reviewed BlackRock’s profitability with respect to
other fund complexes 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 by the Manager, the types of funds managed,
expense allocations and business mix, and therefore comparability of
profitability is somewhat limited.

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 is available, the Boards considered BlackRock’s overall
operating margin compared to the operating margin for leading investment
management firms whose operations include advising closed-end funds,
among other product types. The comparison indicated that operating mar-
gins for BlackRock with respect to its registered funds are generally consis-
tent with margins earned by similarly situated publicly traded competitors.
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, which concluded 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 the
Trusts by BlackRock, and BlackRock’s and its affiliates’ profits relating to
the management and distribution of the Trusts 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 the Trusts. 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 of BCK, BZA, BCL, BZM, MHN, BLJ, BSE, BQH, BFY and
MHE noted that each of its respective Trusts paid contractual management
fees, which do not take into account any expense reimbursement or fee
waivers, lower than or equal to the median contractual management fees
paid by such Trust’s Peers.

The Board of BHV noted that although the Trust paid contractual manage-
ment fees higher than the median of its Peers, its actual management fees
were lower than or equal to the median of its Peers.

D. Economies of Scale: Each Board, including its Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of its respective Trust increase and whether there
should be changes in the advisory fee rate or structure in order to enable
such Trust to participate in these economies of scale, for example through
the use of breakpoints in the advisory fee based upon the assets of such
Trust. The Boards considered that the funds in the BlackRock fund complex
share some common resources and, as a result, an increase in the overall
size of the complex could permit each fund to incur lower expenses than it
would otherwise as a stand-alone entity. 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 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 used a complex-level
breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or
“fall-out” benefits that BlackRock or its affiliates and significant sharehold-
ers may derive from their relationship with the Trusts, both tangible and
intangible, such as BlackRock’s ability to leverage its investment profes-
sionals who manage other portfolios, an increase in BlackRock’s profile in
the investment advisory community, and the engagement of BlackRock’s
affiliates and significant shareholders as service providers to the Trusts,
including for administrative and distribution services. The Boards also
noted that BlackRock may use third-party research obtained by soft dollars
generated by certain mutual fund transactions to assist itself in managing
all or a number of its other client accounts.

In connection with their 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.

ANNUAL REPORT

AUGUST 31, 2009

75


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

Conclusion

Each Board, including its Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between its respec-
tive Trust and the Manager for a one-year term ending June 30, 2010 and
the Sub-Advisory Agreement between such Trust, the Manager and each
Trust’s respective Sub-Advisor for a one-year term ending June 30, 2010.
Based upon its evaluation of all these factors in their totality, each Board,
including its Independent Board Members, was satisfied that the terms of
the Agreements were fair and reasonable and in the best interest of its
respective Trust and its shareholders. In arriving at a decision to approve
the Agreements, each Board 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 deter-
mination. The contractual fee arrangements for each Trust reflects the
results of several years of review by such Trust’s Board Members and pred-
ecessor 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.

76 ANNUAL REPORT

AUGUST 31, 2009


Automatic Dividend Reinvestment Plans

For BCK, BZA, BCL, BZM, BLJ, BSE, BQH, BFY and BHV

Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”),
common shareholders are automatically enrolled to have all distributions
of dividends and capital gains reinvested by Computershare Trust Company,
N.A. (the “Plan Agent”) in the respective Trust’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 a Trust declares a dividend or determines to make a capital gain dis-
tribution, the Plan Agent will acquire shares for the participants’ accounts,
depending upon the circumstances described below, either (i) through
receipt of unissued but authorized shares from the Trust (“newly issued
shares”) or (ii) by purchase of outstanding shares on the open market,
on the Trust’s primary exchange or elsewhere (“open-market purchases”).
If, on the dividend payment date, the net asset value per share (“NAV”) is
equal to or less than the market price per share plus estimated brokerage
commissions (such condition being referred to herein as “market pre-
mium”), the Plan Agent will invest the dividend amount in newly issued
shares on behalf of the participants. The number of newly issued shares
to be credited to each participant’s account will be determined by dividing
the dollar amount of the dividend by the NAV on the date the shares are
issued. However, if the NAV is less than 95% of the market price on the
payment date, the dollar amount of the dividend will be divided by 95%
of the market price on the payment date. If, on the dividend payment
date, the NAV is greater than the market value per share plus estimated

brokerage commissions (such condition being referred to herein as
“market discount”), the Plan Agent will invest the dividend amount in
shares acquired on behalf of the participants in open-market purchases.

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 Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent’s open market purchases in connection with the reinvestment of divi-
dends and distributions. The automatic reinvestment of dividends and dis-
tributions will not relieve participants of any federal income tax that may be
payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is
no direct service charge to participants in the Plan; however, each Trust
reserves the right to amend the Plan to include a service charge payable
by the participants. Participants that request a sale of shares through the
Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold
brokerage commission. All correspondence concerning the Plan should be
directed to the Plan Agent at P.O. Box 43078, Providence, RI 02940-3078
or by calling (800) 699-1BFM. All overnight correspondence should be
directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

For MHN

The Trust offers a Dividend Reinvestment Plan (the “Plan”) under which
income and capital gains dividends paid by the Trust is automatically
reinvested in additional Common Shares of the Trust. The Plan is adminis-
tered on behalf of the shareholders by BNY Mellon Shareowner Services
(the “Plan Agent”). Under the Plan, whenever the Trust declares a dividend,
participants in the Plan will receive the equivalent in Common Shares of
the Trust. The Plan Agent will acquire the shares for the participant’s
account either (i) through receipt of additional unissued but authorized
shares of the Trust (“newly issued shares”) or (ii) by purchase of outstand-
ing Common Shares on the open market on the New York Stock Exchange
or elsewhere. If, on the dividend payment date, the Trust’s net asset value
per share is equal to or less than the market price per share plus esti-
mated brokerage commissions (a condition often referred to as a “market
premium”), the Plan Agent will invest the dividend amount in newly issued
shares. If the Trust ‘s net asset value per share is greater than the market
price per share (a condition often referred to as a “market discount”), the
Plan Agent will invest the dividend amount by purchasing on the open mar-
ket additional shares. If the Plan Agent is 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 Agent will invest any
uninvested portion in newly issued shares. The shares acquired are credited
to each shareholder’s account. The amount credited is determined by divid-

ing the dollar amount of the dividend by either (i) when the shares are
newly issued, the net asset value per share on the date the shares are
issued or (ii) when shares are purchased in the open market, the average
purchase price per share.

Participation in the Plan is automatic, that is, a shareholder is automati-
cally enrolled in the Plan when he or she purchases Common Shares of
the Trust unless the shareholder specifically elects not to participate in the
Plan. Shareholders who elect not to participate will receive all dividend dis-
tributions in cash. Shareholders who do not wish to participate in the Plan
must advise the Plan Agent in writing (at the address set forth below) that
they elect not to participate in the Plan. Participation in the Plan is com-
pletely voluntary and may be terminated or resumed at any time without
penalty by writing to the Plan Agent.

The Plan provides an easy, convenient way for shareholders to make
additional, regular investments in the Trust. The Plan promotes a long-term
strategy of investing at a lower cost. All shares acquired pursuant to the
Plan receive voting rights. In addition, if the market price plus commissions
of a Trust’s shares is above the net asset value, participants in the Plan
will receive shares of the Trust for less than they could otherwise purchase
them and with a cash value greater than the value of any cash distribution

ANNUAL REPORT

AUGUST 31, 2009

77


Automatic Dividend Reinvestment Plans (concluded)

they would have received. However, there may not be enough shares avail-
able in the market to make distributions in shares at prices below the net
asset value. Also, since the Trust does not redeem shares, the price on
resale may be more or less than the net asset value.

There are no enrollment fees or brokerage fees for participating in the Plan.
The Plan Agent’s service fees for handling the reinvestment of distributions
are paid for by the Trust. However, brokerage commissions may be incurred
when the Trust purchases shares on the open market and shareholders will
pay a pro rata share of any such commissions.

The automatic reinvestment of dividends and distributions will not relieve
participants of any federal, state or local income ax that may be payable
(or required to be withheld) on such dividends. Therefore, income and
capital gains may still be realized even though shareholders do not receive
cash. Participation in the Plan generally will not affect the tax-exempt

status of exempt interest dividends paid by the Trust. If, when the Trust’s
shares are trading at a market premium, the Trust issues shares pursuant
to the Plan that have a greater fair market value than the amount of cash
reinvested, it is possible that all or a portion of the discount from the mar-
ket value (which may not exceed 5% of the fair market value of the Trust’s
shares) could be viewed as a taxable distribution. If the discount is viewed
as a taxable distribution, it is also possible that the taxable character of
this discount would be allocable to all the shareholders, including share-
holders who do not participate in the Plan. Thus, shareholders who do not
participate in the Plan might be required to report as ordinary income a
portion of their distributions equal to their allocable share of the discount.

All correspondence concerning the Plan, including any questions about
the Plan, should be directed to the Plan Agent at The BNY Mellon
Shareowner Services, P.O. Box 358035, Pittsburgh, PA 15252-8035,
Telephone: (866) 216-0242.

For MHE

The Trust offers a dividend reinvestment plan (the “Plan”) pursuant to which
Common Shareholders may elect to have dividends and capital gains dis-
tributions reinvested in Common Shares of the Trust. The Trust declares divi-
dends out of net investment income, and will distribute annually net
realized capital gains, if any. Common Shareholders may join or withdraw
from the Plan at any time.

If you decide to participate in the Plan, BNY Mellon Shareowner Services,
as your Plan Agent, will automatically invest your dividends and capital
gains distributions in Common Shares of the Trust in your account.

Under the Plan, participants in the Plan will have their dividends reinvested
in Common Shares of the Trust on valuation date. If the market price per
Common Share on valuation date equals or exceeds net asset value per
Common Share on that date, the Trust will issue new Common Shares to
participants at the higher of net asset value or 95% of the market price. If
net asset value per Common Share on valuation date exceeds the market
price per Common Share on that date, or if the Board should declare a
dividend or capital gains distribution payable to the Common Shareholders
only in cash, the agent will buy Common Shares in the open market on the
NYSE Amex, or elsewhere. If, before the Plan Agent has completed its pur-
chases, the market price exceeds the net asset value per Common Share,
the average per share purchase price paid by the Plan Agent may exceed
the net asset value of the Trust’s Common Shares, resulting in the acquisi-
tion of fewer Common Shares than if the dividend or distribution had been
paid in Common Shares by the Trust.

The Plan Agent maintains all shareholder accounts in the Plan and fur-
nishes written confirmation of all transactions in the accounts, including
information needed by shareholders for tax records. Common Shares in the
account of each Plan participant will be held by the Plan Agent in noncer-
tificated form in the name of the participant, and each shareholder’s proxy
will include those shares received pursuant to the Plan. Holders of
Common Shares who do not elect to participate in the Plan will receive all
such amounts in cash paid by check mailed directly to the record share-
holder by BNY Mellon Shareowner Services, as dividend paying agent.

Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan.

The Plan Agent’s fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. 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 or
capital gains distributions.

Plan participants will receive tax information annually for personal records
and to help prepare federal income tax returns. The automatic reinvestment
of dividends and capital gains distributions does not relieve plan partici-
pants of any income tax which may be payable on dividends or distribu-
tions.

Plan participants may withdraw from the Plan at any time by writing to the
Plan Agent at the address noted below. If you withdraw, you will receive a
share certificate in your name for all full Common Shares credited to your
account under the Plan and a cash payment for any fraction of a share
credited to your account. If you desire, the Plan Agent will sell your shares
in the Plan and send you the proceeds of the sale, less brokerage commis-
sions.

If your shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your broker-
age firm, bank or nominee is unable to participate on your behalf, you
should request that your shares be re-registered in your own name, which
will enable your participation in the Plan.

Any correspondence concerning the Plan should be directed to the Plan
Agent at BNY Mellon Shareowner Services, P.O. Box 358035, Pittsburgh, PA
15252-8035,Telephone: (866) 216-0242.

78 ANNUAL REPORT

AUGUST 31, 2009


Officers and Trustees         
        Number of BlackRock-   
        Advised Registered   
    Length    Investment Companies   
  Position(s)  of Time    (“RICs”) Consisting of   
Name, Address  Held with  Served as    Investment Portfolios  Public 
and Year of Birth  Trusts  a Trustee2  Principal Occupation(s) During Past 5 Years  (“Portfolios”) Overseen  Directorships 
     Non-Interested Trustees1         
Richard E. Cavanagh  Chairman  Since  Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life  104 RICs consisting of  Arch Chemical 
40 East 52nd Street  of the Board  2007  Insurance Company of America since 1998; Trustee, Educational Testing  101 Portfolios  (chemical and allied 
New York, NY 10022  and Trustee    Service from 1997 to 2009 and Chairman from 2005 to 2009; Senior    products) 
1946      Advisor, The Fremont Group since 2008 and Director thereof since 1996;     
      Adjunct Lecturer, Harvard University since 2007; President and Chief     
      Executive Officer of 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  104 RICs consisting of  AtriCure, Inc. 
40 East 52nd Street  the Board,  2007  1987; Co-founder and Director of the Cooke Center for Learning and  101 Portfolios  (medical devices); 
New York, NY 10022  Chair of    Development, (a not-for-profit organization) since 1987; Director of    Care Investment 
1950  the Audit    Enable Medical Corp. from 1996 to 2005.    Trust, Inc. (health 
  Committee        care real estate 
  and Trustee        investment trust) 
G. Nicholas Beckwith, III  Trustee  Since  Chairman and Chief Executive Officer, Arch Street Management, LLC  104 RICs consisting of  None 
40 East 52nd Street    2007  (Beckwith Family Foundation) and various Beckwith property companies  101 Portfolios   
New York, NY 10022      since 2005;Chairman of the Board of Directors, University of Pittsburgh     
1945      Medical Center since 2002; Board of Directors, Shady Side Hospital     
Foundation since 1977; Board of Directors, Beckwith Institute for
      Innovation In Patient Care since 1991; Member, Advisory Council on     
      Biology and Medicine, Brown University since 2002; Trustee, Claude     
      Worthington Benedum Foundation (charitable foundation) since 1989;     
      Board of Trustees, Chatham University since 1981; Board of Trustees,     
University of Pittsburgh since 2002; Emeritus Trustee, Shady Side
      Academy since 1977; Chairman and Manager, Penn West Industrial     
      Trucks LLC (sales, rental and servicing of material handling equipment)     
      from 2005 to 2007; Chairman, President and Chief Executive Officer,     
      Beckwith Machinery Company (sales, rental and servicing of construction     
      and equipment) from 1985 to 2005; Member of the Board of Directors,     
      National Retail Properties (REIT) from 2006 to 2007.     
Kent Dixon  Trustee and  Since  Consultant/Investor since 1988.  104 RICs consisting of  None 
40 East 52nd Street  Member of  2007    101 Portfolios   
New York, NY 10022  the Audit         
1937  Committee         
Frank J. Fabozzi  Trustee and  Since  Consultant/Editor of The Journal of Portfolio Management since 2006;  104 RICs consisting of  None 
40 East 52nd Street  Member of  2007  Professor in the Practice of Finance and Becton Fellow, Yale University, -  101 Portfolios   
New York, NY 10022  the Audit    School of Management, since 2006; Adjunct Professor of Finance and     
1948  Committee    Becton Fellow, Yale University from 1994 to 2006.     
Kathleen F. Feldstein  Trustee  Since  President of Economics Studies, Inc. (private economic consulting  104 RICs consisting of  The McClatchy 
40 East 52nd Street    2007  firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000  101 Portfolios  Company 
New York, NY 10022      to Emeritus thereof since 2008; Member of the Board of Partners    (publishing) 
1941      Community Healthcare, Inc. since 2005; Member of the Corporation of     
      Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston     
      since 1992; Member of the Visiting Committee to the Harvard University     
      Art Museum since 2003.     
James T. Flynn  Trustee and  Since  Chief Financial Officer of JP Morgan & Co., Inc. from 1990 to 1995.  104 RICs consisting of  None 
40 East 52nd Street  Member of  2007    101 Portfolios   
New York, NY 10022  the Audit         
1939  Committee         
Jerrold B. Harris  Trustee  Since  Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific  104 RICs consisting of  BlackRock Kelso 
40 East 52nd Street    2007  equipment) since 2000.  101 Portfolios  Capital Corp. 
New York, NY 10022           
1942           

ANNUAL REPORT

AUGUST 31, 2009

79


Officers and Trustees (continued)     
        Number of BlackRock-   
        Advised Registered   
    Length    Investment Companies   
  Position(s)  of Time    (“RICs”) Consisting of   
Name, Address  Held with  Served as    Investment Portfolios  Public 
and Year of Birth  Trusts  a Trustee2  Principal Occupation(s) During Past 5 Years  (“Portfolios”) Overseen  Directorships 
     Non-Interested Trustees1 (concluded)         
R. Glenn Hubbard  Trustee  Since  Dean, Columbia Business School since 2004; Columbia faculty  104 RICs consisting of  ADP (data and 
40 East 52nd Street    2007  member since 1988; Co-Director, Columbia Business School’s  101 Portfolios  information services), 
New York, NY 10022      Entrepreneurship Program from 1997 to 2004; Visiting Professor,    KKR Financial 
1958      John F. Kennedy School of Government at Harvard University and    Corporation (finance), 
      the Harvard Business School since 1985 and at the University of    Metropolitan Life 
      Chicago since 1994; Chairman, U.S. Council of Economic Advisers    Insurance Company 
      under the President of the United States from 2001 to 2003.    (insurance) 
W. Carl Kester  Trustee  Since  George Fisher Baker Jr. Professor of Business Administration, Harvard  104 RICs consisting of  None 
40 East 52nd Street    2007  Business School; Deputy Dean for Academic Affairs, since 2006;  101 Portfolios   
New York, NY 10022      Unit Head, Finance, Harvard Business School, from 2005 to 2006;     
1951      Senior Associate Dean and Chairman of the 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 any of 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 directors as joining the Funds’ board in 
   2007, each trustee first became a member of the board of trustees of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III, 
   1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; 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  President  Since  Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer,  173 RICs consisting of  None 
40 East 52nd Street  and  2007  State Street Research & Management Company from 2000 to 2005;  283 Portfolios   
New York, NY 10022  Trustee    Chairman of the Board of Trustees, State Street Research Mutual     
1945      Funds from 2000 to 2005; Chairman, SSR Realty from 2000 to 2004.     
Henry Gabbay  Trustee  Since  Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director,  173 RICs consisting of  None 
40 East 52nd Street    2007  BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer,  283 Portfolios   
New York, NY 10022      BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock     
1947      Funds and BlackRock Bond Allocation 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 PNC Securities. Trustees serve until their resignation, removal or death, or until December 31 of the year in
which they turn 72.

80 ANNUAL REPORT

AUGUST 31, 2009


Officers and Trustees (continued)

  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 F. Ackerley  President  Since  Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009; 
40 East 52nd Street  and Chief  2009  Chief Operating Officer of BlackRock’s Account Management Group (AMG) since 2009; Chief Operating Officer of 
New York, NY 10022  Executive    BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006. 
1962  Officer     
Brendan Kyne  Vice  Since  Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock’s U.S. Retail 
40 East 52nd Street  President  2009  Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008; 
New York, NY 10022      Associate of BlackRock, Inc. from 2002 to 2004. 
1977       
Neal J. Andrews  Chief  Since  Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund 
40 East 52nd Street  Financial  2007  Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. 
New York, NY 10022  Officer     
1966       
Jay M. Fife  Treasurer  Since  Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch 
40 East 52nd Street    2007  Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of 
New York, NY 10022      MLIM Fund Services Group from 2001 to 2006. 
1970       
Brian P. Kindelan  Chief  Since  Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel 
40 East 52nd Street  Compliance  2007  of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004. 
New York, NY 10022  Officer     
1959       
Howard B. Surloff  Secretary  Since  Managing Director and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) 
40 East 52nd Street    2007  of Goldman Sachs Asset Management, L.P. from 1993 to 2006. 
New York, NY 10022       
1965       
  1 Officers of the Trusts serve at the pleasure of the Board. 

Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Trusts retired. The Trusts’ Boards of
Trustees wish Mr. Burke well in his retirement.

Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Trusts, and Brendan Kyne
became Vice President of the Trusts.

ANNUAL REPORT

AUGUST 31, 2009

81


Officers and Trustees (concluded)       
Custodians  Transfer Agent  Auction Agent  Investment Advisor  Accounting Agent  Independent 
State Street Bank  Common Shares  Preferred Shares  BlackRock Advisors, LLC  State Street Bank  Registered Public 
and Trust Company1  Computershare Trust  BNY Mellon  WIlmington, DE 19809  and Trust Company  Accounting Firm 
Boston, MA 02101  Company, N.A.3  Shareowner Services    Princeton, NJ 08540  Deloitte & Touche LLP 
  Providence, RI 02940  Jersey City, NJ 07310      Princeton, NJ 08540 
The Bank of  BNY Mellon    Sub-Advisors  Legal Counsel  Address of the Trusts 
New York Mellon2  Shareowner Services4    BlackRock Financial  Skadden, Arps, Slate,  100 Bellevue Parkway 
New York, NY  Jersey City, NJ 07310    Management, Inc.3  Meagher & Flom LLP  Wilmington, DE 19809 
10286      New York, NY 10022  New York, NY 10036   
      BlackRock Investment     
      Management, LLC4     
      Plainsboro, NJ 08536     
 1 For all Trusts except MHN.         
 2 For MHN.           
 3 For all Trusts except MHN and MHE.         
 4 For MHN and MHE.           

82 ANNUAL REPORT AUGUST 31, 2009


Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009 to elect director or trustee nominees
of each Trust:

Approved the Class II Trustees as follows:             
  Richard S. Davis  Frank J. Fabozzi  James T. Flynn 
    Votes    Votes    Votes 
   Votes For  Withheld  Votes For  Withheld   Votes For  Withheld 
BCK   4,359,455  168,207  9711  1   4,359,455  168,207 
BZA   3,018,919  76,930  5811  371   3,018,919  76,930 
BCL   6,406,148  358,067  1,2481  31   6,408,148  356,067 
BZM   2,013,631  6,893  4551  41   2,013,631  6,893 
BLJ   2,116,490  52,935  4981  1   2,116,490  52,935 
BSE   5,780,632  204,066  13891  1   5,780,632  204,066 
BQH   2,531,695  69,287  5261  1   2,531,695  69,287 
BFY   4,353,653  224,002  9201  21   4,353,653  224,002 
BHV   1,516,185  18,265  2401  131   1,516,185  18,265 
Karen P. Robards

    Votes         
   Votes For  Withheld         
BCK   4,315,807  211,855         
BZA   3,005,014  90,835         
BCL   6,403,636  360,579         
BZM   2,012,377  8,147         
BLJ   2,116,490  52,935         
BSE   5,780,632  204,066         
BQH   2,531,695  69,287         
BFY   4,200,985  376,670         
BHV   1,521,232  13,218         
Approved the Trustees as follows:             
     G. Nicholas Beckwith, III  Richard E. Cavanagh  Richard S. Davis 
    Votes    Votes    Votes 
   Votes For  Withheld  Votes For  Withheld   Votes For  Withheld 
MHN  26,736,532  1,880,624  26,710,218  1,906,938  26,835,131  1,782,025 
MHE   2,030,560  98,982  2,022,903  106,639   2,030,560  98,982 
  Kent Dixon  Frank J. Fabozzi  Kathleen F. Feldstein 
    Votes    Votes    Votes 
   Votes For  Withheld  Votes For  Withheld   Votes For  Withheld 
MHN  26,442,311  2,174,845  5,0571  1,1011  26,527,378  2,089,778 
MHE   2,030,560  98,982  3451  1   2,022,903  106,639 
  James T. Flynn             Henry Gabbay  Jerrold B. Harris 
    Votes    Votes    Votes 
   Votes For  Withheld  Votes For  Withheld   Votes For  Withheld 
MHN  26,453,277  2,163,879  26,832,996  1,784,160  26,734,619  1,882,537 
MHE   2,030,560  98,982  2,030,560  98,982   2,022,903  106,639 
  R. Glenn Hubbard             W. Carl Kester  Karen P. Robards 
    Votes    Votes    Votes 
   Votes For  Withheld  Votes For  Withheld   Votes For  Withheld 
MHN  26,748,350  1,868,806  5,0571  1,1011  26,768,455  1,848,701 
MHE   2,022,903  106,639  3451  1   2,022,903  106,639 
   1 Voted on by holders of Preferred Shares only.             

ANNUAL REPORT

AUGUST 31, 2009

83


Additional Information (continued)

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.

Dividend Policy

The Trusts’ dividend policy is to distribute all or a portion of their net invest-
ment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Trusts
may at times pay out less than the entire amount of net investment income
earned in any particular month and may at times in any particular month
pay out such accumulated but undistributed income in addition to net

investment income earned in that month. As a result, the dividends paid by
the Trusts for any particular month may be more or less than the amount of
net investment income earned by the Trusts during such month. The Trusts’
current accumulated but undistributed net investment income, if any, is dis-
closed in the Statements of Assets and Liabilities, which comprises part of
the financial information included in this report.

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 86,
there were no material changes in the Trusts’ investment objectives of poli-
cies or to the Trusts’ charters or by-laws that were not approved by the
shareholders 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 it 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 contact the Trusts
at (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the SEC
for the first and third quarters 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 he Public Reference Room
may be obtained by calling (202) 551-8090. 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 toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’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’ portfolio during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the
Securities and Exchange Commission’s website at http://www.sec.gov.

84 ANNUAL REPORT

AUGUST 31, 2009


Additional Information (continued)               
     Board Approvals                 
On September 12, 2008, the Board of BCK, MHN and BSE voted unani-  at the time of investment, and the Trusts will not be required to dispose 
mously to change certain investment guidelines of the Trusts. Under nor-  of municipal bonds they hold in the event of subsequent downgrades. 
mal circumstances, the Trusts are required to invest at least 80% of  The Trusts’ new investment policy is, under normal conditions, to invest 
their managed assets in municipal bonds either (i) insured under an  at least 80% of their assets in municipal bonds insured by insurers or 
insurance policy purchased by the Trusts or (ii) insured under an insur-  other entities with claims-paying abilities rated at least investment grade at 
ance policy obtained by the issuer of the municipal bond or any other  the time of investment. Due to recent downgrades, some of the insurers 
party. Historically, the Trusts have had an additional nonfundamental  insuring a portion of the Trusts’ current holdings are already rated below 
investment policy limiting their purchases of insured municipal bonds to  the highest rating category.       
those bonds insured by insurance providers with claims-paying abilities             
rated AAA or Aaa at the time of investment.      Effective September 13, 2008, following approval by the Trusts’ Board and 
      the applicable ratings agencies, the Board amended the terms of the Trusts’ 
Following the onset of the credit and liquidity crises currently troubling  Governing Instrument in order to allow the Trusts to enter into TOB transac- 
the financial markets, the applicable rating agencies lowered the claims-  tions, the proceeds of which were used to redeem a portion of the Trusts’ 
paying ability rating of most of the municipal bond insurance providers  Preferred Shares. Accordingly, the definition of Inverse Floaters was amended 
below the highest rating category. As a result, the Advisor recommended,  to incorporate the Trusts’ permissible ratio of floating rate instruments into 
and the Board approved, an amended policy with respect to the pur-  inverse floating rate instruments. Additionally, conforming changes and cer- 
chase of insured municipal bonds that such bonds must be insured by  tain formula modifications concerning inverse floaters were made to the def- 
insurance providers or other entities with claims-paying abilities rated  initions of Moody’s Discount Factor and S&P Discount Factor, as applicable, 
at least investment grade. This investment grade restriction is measured  to integrate the Trusts’ investments in TOBs into applicable calculations. 
     Section 19 Notices                 
The amounts and sources of distributions reported are only estimates and  the tax regulations. Each Trust will send you a Form 1099-DIV each calen- 
are not being provided for tax reporting purposes. The actual amounts and  dar year that will tell you how to report these distributions for federal 
sources for tax reporting purposes will depend upon each Trust’s invest-  income tax purposes.         
ment experience during the year and may be subject to changes based on             
    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 
BCK  $0.702000             $0.702000  100%  0%  0%  100% 
BZA  $0.789000  $0.002917           $0.791917  100%  0%  0%  100% 
BCL  $0.736500             $0.736500  100%  0%  0%  100% 
BZM  $0.792300  $0.003211           $0.795511  100%  0%  0%  100% 
MHN.  $0.675582             $0.675582  100%  0%  0%  100% 
BLJ  $0.861000             $0.861000  100%  0%  0%  100% 
BSE  $0.718500             $0.718500  100%  0%  0%  100% 
BQH  $0.846000  $0.003939           $0.849939  100%  0%  0%  100% 
BFY.  $0.795000             $0.795000  100%  0%  0%  100% 
BHV  $0.891852  $0.159066           $1.050918  85%  15%  0%  100% 
MHE  $0.626803             $0.626803  100%  0%  0%  100% 

ANNUAL REPORT

AUGUST 31, 2009

85


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 informa-
tion 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.

86 ANNUAL REPORT

AUGUST 31, 2009



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 affect the yield to Common Shareholders. 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
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr. (retired effective December 31, 2008)

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.


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 Virginia                 
Municipal Bond  $17,700  $16,800  $3,500  $3,500  $6,100  $6,100  $1,028  $1,049 
Trust                 

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 for all of the registrants the
Committee oversees. 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 one or more of its members 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 Virginia Municipal  $418,128  $415,649 
Bond Trust     


(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) – $407,500, 0%

Item 5 – Audit Committee of Listed Registrants – 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
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr. (retired effective December 31, 2008)

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,
2009.

(a)(1) The registrant (or “Fund”) is managed by a team of investment professionals
comprised of Phillip Soccio, CFA, Director at BlackRock, Theodore R. Jaeckel, Jr.,
CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director at
BlackRock. Each is a member of BlackRock’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. Soccio, Jaeckel and O’Connor have been members of the registrant’s
                             portfolio management team since 2007, 2006 and 2006, respectively.   
             Portfolio Manager  Biography         
             Phillip Soccio    Director of BlackRock, Inc. since 2009; Vice President of BlackRock, Inc. 
    from 2005 to 2008; Associate of BlackRock, Inc. from 2002 to 2004. 
             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, 2009:         
  (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     
Walter O’Connor  76  0  0  0  0  0 
  $18.5 Billion  $0  $0  $0  $0  $0 
Theodore R. Jaeckel,  76  0  0  0  0  0 
  $18.5 Billion  $0  $0  $0  $0  $0 
Phillip Soccio  8  0  0  0  0  0 
  $1.54 Billion  $0  $0  $0  $0  $0 
           (iv) Potential Material Conflicts of Interest         

BlackRock and its affiliates (collectively, herein “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, 2009:

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”) — The LTIP is a long-term
incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are
granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly
vested and subject to the attainment of certain performance goals, will be settled 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 and Jaeckel 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 – August 31, 2009.

Portfolio Manager  Dollar Range of Equity Securities 
  Beneficially Owned 
Walter O’Connor  None 
Theodore R. Jaeckel, Jr.  None 
Phillip Soccio  None 

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 – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical information and set forth the
qualifications of the proposed nominee to the registrant’s Secretary. There have been no
material changes to these procedures.

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 13(a)-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 Virginia Municipal Bond Trust

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Virginia Municipal Bond Trust

Date: October 22, 2009

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 Virginia Municipal Bond Trust

Date: October 22, 2009

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Virginia Municipal Bond Trust

Date: October 22, 2009