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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

-------

FORM 10-K

FOR ANNUAL AND TRANSITION REPORTS
PURSUANT TO SECTIONS 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(MARK ONE)

[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the fiscal year ended March 30, 1997
-------------------

OR

/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 33-56254

MERRILL LYNCH MUNICIPAL ABS, INC.
----------------------------------------------------------
(Exact Name of registrant as specified in charter)

NEW YORK 13-369-8229
- --------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)

World Financial Center
North Tower
250 Vesey Street - 9th Flr.
North Tower
New York, New York 10080-1323
- ------------------------------- ---------------
(Address of principal executive (Zip Code)
offices)

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

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




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

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

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


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


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


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






Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/ No / /

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of the Form 10-K or any amendment to this
Form 10-K.

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

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

ALL THE VOTING STOCK IS HELD BY AFFILIATES OF THE REGISTRANT.

(APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes / / No / /

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.

AS OF MARCH 30, 1997, THERE ARE 100 SHARES OF COMMON STOCK.

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the
Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is
incorporated: (1) any annual report to security-holders; (2) any proxy or
information statement; and (3) any prospectus filed pursuant to Rule 424 (b) or
(c) under the Securities Act of 1933. The listed documents should be clearly
described for identification purposes (e.g., annual report to security-holders
for fiscal year ended December 24, 1980).






PART I

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

Item 2. PROPERTIES.
EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 3. LEGAL PROCEEDINGS.
NONE.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS.
NONE.

PART II

Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDERS
MATTERS.

(a) Number of holders of record of each Series of Certificates as of
March 30, 1997:

SERIES 1: 50 HOLDERS*;
SERIES 2: 60 HOLDERS*;
SERIES 3: 90 HOLDERS*.

(b) Principal market in which registrant's Certificates are being
traded:

SERIES 1. OVER THE COUNTER
SERIES 2. NEW YORK STOCK EXCHANGE
SERIES 3. NEW YORK STOCK EXCHANGE

(c) Report of Dividends:

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

Item 6. SELECTED FINANCIAL DATA.
EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE.
NONE.

* Estimated number of Holders per Series equals the number of Direct
Participants holding Certificates through The Depository Trust Company plus the
number of accounts held at Merrill Lynch for the benefit of Certificateholders.






PART III

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

Item 11. EXECUTIVE COMPENSATION.
EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
EXEMPT PER NO-ACTION LETTER PUBLICLY AVAILABLE MAY 30, 1996.

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

Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a) Exhibits

1. FINANCIAL STATEMENTS
INDEPENDANT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON
PROCEDURES
NOTICE OF SUBSTITUTION OF DEFEASANCE OBLIGATIONS

2. FINANCIAL SCHEDULES
NONE

3. EXHIBIT INDEX

99.1 Independant Accountants' Report on Applying Agreed-Upon
Procedures

99.2 Notice of Substitution of Defeasance Obligations

99.3 Statements to holders of Merrill Lynch Municipal ABS,
Inc. Prerefunded Municipal Certificates, Series 1,
Series 2, Series 3 relating to the Distribution Dates
of April 1, 1996, as amended and October 1, 1996.

(b) Reports on Form 8-K
None






SIGNATURES

Pursuant to the requirements of the Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

MERRILL LYNCH MUNICIPAL ABS, INC.

By: /s/ Edward J. Sisk
----------------------------------
Name: Edward J. Sisk
Title: Authorized Signatory
Date: December 22, 2004





EXHIBIT INDEX

EXHIBIT PAGE NO.
- ------- --------

99.1 Independant Accountants' Report on Applying Agreed-Upon Procedures 8

99.2 Notice of Substitution of Defeasance Obligations 12

99.3 Statements to holders of Merrill Lynch Municipal ABS, Inc.
Prerefunded Municipal Certificates, Series 1, Series 2,
Series 3 relating to the Distribution Dates of April 1, 1996,
as amended, and October 1, 1996. 13








Exhibit 99.1

[LETTERHEAD]

Report of Independent Accountants


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

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

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




Ladies and Gentlemen:

We have examined management's assertions that the Depositor and
the Trustee have complied, in all material respects, with the
provisions of the Trust Agreement dated as of March 28, 1995, as
supplemented by the Prerefunded Municipal Certificates Series 1,
2 and 3 Supplement, dated as of March 21, 1995 (together, the
"Trust Agreement"), during the periods covered by the annual
report on Form 10-K filed by the Depositor on behalf of the Trust
for the year ended March 31, 1997 (the "Annual Report").
Management is responsible for compliance with the Trust
Agreement. Our responsibility is to express an opinion on
management's assertions based on our examination.

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

In our opinion, the Depositor and the Trustee have complied, in
all material respects, with the Trust Agreement during the period
covered by the Annual Report and management's assertions with
respect to such compliance are fairly stated, in all material
respects, for the year ended March 31, 1997.





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






EXHIBIT 99.2

On September 28, 1996, Bankers Trust Company Bank (Tel: (212) 250-6378), the
escrow trustee for the prerefunded bonds underlying Merrill Lynch Municipal ABS,
Inc. Prerefunded Municipal Certificates, Series 1, Series 2 and Series 3, upon
inquiry by the registrant, reported that no substitution of defeasance
obligations in the escrow for each of the related maturity of bonds has
occurred.





EXHIBIT 99.3

STATEMENTS TO HOLDERS OF MERRILL LYNCH MUNICIPAL ABS, INC.
PREREFUNDED MUNICIPAL CERTIFICATES, SERIES 1, SERIES 2 AND SERIES 3
RELATING TO THE DISTRIBUTION DATES OF APRIL 1, 1996, AS
AMENDED AND OCTOBER 1, 1996.











[LOGO] Deutsche Bank
Bankers Trust Company
Four Albany Street
MS 5041
New York, New York 10000
March 26, 1996

Merrill Lynch
World Financial Center
North Towers - 9th Floor
250 Vesey Street
New York, NY 10281-1309
Attn Robert Sheybani

The Depository Trust Company
55 Water Street
New York, NY 10004
Attn: Shandon Chaharaburty

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

Gentlemen:

Pursuant to Section 4.03 of the Trust Agreement dated as of March 28, 1995,
Bankers Trust Company as Trustee for the above-referenced bond issues, hereby
notifies you of the debt service payments for each Series due on April 1, 1996.
Attached is a payment schedule for each Series.

If you have any questions, please feel free to call me at (212) 250-6378.

Very truly yours,



Lisa Lai
Assistant Treasurer










[LOGO] Bankers Trust Company

March 26, 1996

Kerstin Stanley
Merrill Lynch

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

Kerstin:

For the above referenced issues, the principal and interest information for the
October 1995, April 1996, and October 1996 payment dates are attached. All other
relevant information is as follows:


Premium on Bonds None
Trustee Fees Payable None
Interest Shortfall on Bonds None
Aggregate Shortfall on Bonds None
Accrued Interest undistributed to holders None
Accrued Principal undistributed to holders None
Underlying Bonds on issues Attached


Should you have any questions please call me at (212) 250-6378.

Thank You,


James A. Odorczuk








SERIES 1 CERTIFICATES



- --------------------------------------------------------------------------------------------------
Certificate Interest Principal
Class Maturity CUSIP Certificate Certificate Amount Amount
Number Date Number Rate Amount Due Due
- --------------------------------------------------------------------------------------------------

2 04/01/1996 021433DW4 4.65 75,000.00 1,743.75 75,000.00
- --------------------------------------------------------------------------------------------------
3 10/01/1996 021433 DX2 4.65 80,000.00 1,860.00 0.00
- --------------------------------------------------------------------------------------------------
4 04/01/1997 021433 DY0 4.70 80,000.00 1,880.00 0.00
- --------------------------------------------------------------------------------------------------
5 10/01/1997 021433 DZ7 4.70 85,000.00 1,997.50 0.00
- --------------------------------------------------------------------------------------------------
6 04/01/1998 O21433 EA1 4.80 85,000.00 2,040.00 0.00
- --------------------------------------------------------------------------------------------------
7 10/01/1998 021433 EB9 4.80 85,000.00 2,040.00 0.00
- --------------------------------------------------------------------------------------------------
8 04/01/1999 021433 EC7 4.90 90,000.00 2,205.00 0.00
- --------------------------------------------------------------------------------------------------
9 10/01/1999 021433 ED5 4.90 90,000.00 2,205.00 0.00
- --------------------------------------------------------------------------------------------------
10 04/01/2000 021433 EE3 5.00 95,000.00 2,375.00 0.00
- --------------------------------------------------------------------------------------------------
11 10/01/2000 021433 EF0 5.00 95,000.00 2,375.00 0.00
- --------------------------------------------------------------------------------------------------
12 04/01/2001 021433 EG8 5.00 100,000.00 2,500.00 0.00
- --------------------------------------------------------------------------------------------------
13 10/01/2001 021433 EH6 5.00 100,000.00 2,500.00 0.00
- --------------------------------------------------------------------------------------------------
14 04/01/2002 021433 EJ2 5.10 105,000.00 2,677.50 0.00
- --------------------------------------------------------------------------------------------------
15 10/01/2002 021433 EK9 5.10 295,000.00 7,522.50 0.00
- --------------------------------------------------------------------------------------------------
16 04/01/2003 021433 EL7 5.10 100,000.00 2,550.00 0.00
- --------------------------------------------------------------------------------------------------
17 10/01/2003 021433 EM5 5.10 320,000.00 8,160.00 0.00
- --------------------------------------------------------------------------------------------------
18 04/01/2004 021433 EN3 5.20 95,000.00 2,470.00 0.00
- --------------------------------------------------------------------------------------------------
19 10/01/2004 021433 EP8 5.20 340,000.00 8,840.00 0.00
- --------------------------------------------------------------------------------------------------
20 04/01/2005 021433 EQ6 5.25 95,000.00 2,493.75 0.00
- --------------------------------------------------------------------------------------------------
21 10/01/2005 021433 ER4 5.25 360,000.00 9,450.00 0.00
- --------------------------------------------------------------------------------------------------
22 10/01/2008 021433 EX1 5.50 1,495,000.00* 41,112.50 0.00
- --------------------------------------------------------------------------------------------------
23 10/01/2010 021433 FB8 5.60 1,130,000.00* 31,640.00 0.00
- --------------------------------------------------------------------------------------------------
24 10/01/2012 021433 FF9 5.70 1,200,000.00* 34,200.00 0.00
- --------------------------------------------------------------------------------------------------
RI 10/01/2012 021433 FG7 Variable 80,531.00 Residual --> 4,756.00
- --------------------------------------------------------------------------------------------------
TOTAL $6,675,531.0 $176,837.50 $79,756.00
- --------------------------------------------------------------------------------------------------

****Information as of 3/31/96
****Underlying Bond-Altamonte Springs FLA Authority
13.125% 10/01/12, $3,910,000







SERIES 2 CERTIFICATES



- ----------------------------------------------------------------------------------------------
Certificate Interest Principal
Class Maturity CUSIP Certificate Certificate Amount Amount
Number Date Number Rate Amount Due Due
- ----------------------------------------------------------------------------------------------

2 04/01/1996 70252B AQ6 4.65 200,000.00 4,650.00 200,000.00
- -----------------------------------------------------------------------------------------------
3 10/01/1996 70252B AR4 4.65 205,000.00 4,766.25 0.00
- -----------------------------------------------------------------------------------------------
4 04/01/1997 70252B AS2 4.70 210,000.00 4,935.00 0.00
- -----------------------------------------------------------------------------------------------
5 10/01/1997 70252B AT0 4.70 215,000.00 5,052.50 0.00
- -----------------------------------------------------------------------------------------------
6 04/01/1998 70252B AU7 4.80 220,000.00 5,280.00 0.00
- -----------------------------------------------------------------------------------------------
7 10/01/1998 70252B AV5 4.80 225,000.00 5,400.00 0.00
- -----------------------------------------------------------------------------------------------
8 04/01/1999 70252B AW3 4.90 230,000.00 5,635.00 0.00
- -----------------------------------------------------------------------------------------------
9 10/01/1999 70252B AX1 4.90 240,000.00 5,880.00 0.00
- -----------------------------------------------------------------------------------------------
10 04/01/2000 70252B AY9 5.00 245,000.00 6,125.00 0.00
- -----------------------------------------------------------------------------------------------
11 10/01/2000 70252B AZ6 5.00 250,000.00 6,250.00 0.00
- -----------------------------------------------------------------------------------------------
12 04/01/2001 70252B BA0 5.00 255,000.00 6,375.00 0.00
- -----------------------------------------------------------------------------------------------
13 10/01/2001 70252B BB8 5.00 265,000.00 6,625.00 0.00
- -----------------------------------------------------------------------------------------------
14 04/01/2002 70252B BC6 5.10 270,000.00 6,885.00 0.00
- -----------------------------------------------------------------------------------------------
15 10/01/2002 70252B BD4 5.10 795,000.00 20,272.50 0.00
- -----------------------------------------------------------------------------------------------
16 04/01/2003 70252B BE2 5.10 265,000.00 6,757.50 0.00
- -----------------------------------------------------------------------------------------------
17 10/01/2003 70252B BF9 5.10 860,000.00 21,930.00 0.00
- -----------------------------------------------------------------------------------------------
18 04/01/2004 70252B BG7 5.20 250,000.00 6,500.00 0.00
- -----------------------------------------------------------------------------------------------
19 10/01/2004 70252B BH5 5.20 925,000.00 24,050.00 0.00
- -----------------------------------------------------------------------------------------------
20 04/01/2005 70252B BJ1 5.25 240,000.00 6,300.00 0.00
- -----------------------------------------------------------------------------------------------
21 10/01/2005 70252B BK8 5.25 1,000,000.00 26,250.00 0.00
- -----------------------------------------------------------------------------------------------
22 10/01/2007 70252B BP7 5.40 2,255,000.00* 60,885.00 0.00
- -----------------------------------------------------------------------------------------------
23 10/01/2010 70252B BV4 5.60 5,000,000.00* 140,000.00 0.00
- -----------------------------------------------------------------------------------------------
24 10/01/2012 70252B BZ5 5.70 1,915,000.00* 54,577.50 0.00
- -----------------------------------------------------------------------------------------------
RI 10/01/2012 70252B CA9 Variable 103,882.00 Residual --> 5,025.00
- -----------------------------------------------------------------------------------------------

TOTAL $16,638,882.00 $441,381.25 $205,025.00
- -----------------------------------------------------------------------------------------------

****INFORMATION AS OF 03/31/1996
****Pasco County FLA Health Facilities
13.125% 10/01/12, $9,850,000








SERIES 3 CERTIFICATES



- ----------------------------------------------------------------------------------------------
Certificate Interest Principal
Class Maturity CUSIP Certificate Certificate Amount Amount
Number Date Number Rate Amount Due Due
- ----------------------------------------------------------------------------------------------

2 04/01/1996 684503 TC9 4.65 845,000.00 19,646.25 845,000.00
- ----------------------------------------------------------------------------------------------
3 10/01/1996 684503 TD7 4.65 865,000.00 20,111.25 0.00
- ----------------------------------------------------------------------------------------------
4 04/01/1997 684503 TE5 4.70 885,000.00 20,797.50 0.00
- ----------------------------------------------------------------------------------------------
5 10/01/1997 684503 TF2 4.70 905,000.00 21,267.50 0.00
- ----------------------------------------------------------------------------------------------
6 04/01/1998 684503 TG0 4.80 925,000.00 22,200.00 0.00
- ----------------------------------------------------------------------------------------------
7 10/01/1998 684503 TH8 4.80 945,000.00 22,680.00 0.00
- ----------------------------------------------------------------------------------------------
8 04/01/1999 684503 TJ4 4.90 970,000.00 23,765.00 0.00
- ----------------------------------------------------------------------------------------------
9 10/01/1999 684503 TK1 4.90 995,000.00 24,377.50 0.00
- ----------------------------------------------------------------------------------------------
10 04/01/2000 684503 TL9 5.00 1,020,000.00 25,500.00 0.00
- ----------------------------------------------------------------------------------------------
11 10/01/2000 684503 TM7 5.00 1,045,000.00 26,125.00 0.00
- ----------------------------------------------------------------------------------------------
12 04/01/2001 684503 TN5 5.00 1,070,000.00 26,750.00 0.00
- ----------------------------------------------------------------------------------------------
13 10/01/2001 684503 TP0 5.00 1,095,000.00 27,375.00 0.00
- ----------------------------------------------------------------------------------------------
14 04/01/2002 684503 TQ8 5.10 1,125,000.00 28,687.50 0.00
- ----------------------------------------------------------------------------------------------
15 10/01/2002 684503 TR6 5.10 3,190,000.00 81,345.00 0.00
- ----------------------------------------------------------------------------------------------
16 04/01/2003 684503 TS4 5.10 1,100,000.00 28,050.00 0.00
- ----------------------------------------------------------------------------------------------
17 10/01/2003 684503 TT2 5.10 3,425,000.00 87,337.50 0.00
- ----------------------------------------------------------------------------------------------
18 04/01/2004 684503 TU9 5.20 1,065,000.00 27,690.00 0.00
- ----------------------------------------------------------------------------------------------
19 10/01/2004 684503 TV7 5.20 3,675,000.00 95,550.00 0.00
- ----------------------------------------------------------------------------------------------
20 10/01/2005 684503 TX3 5.25 4,975,000.00* 130,593.75 0.00
- ----------------------------------------------------------------------------------------------
21 10/01/2006 684503 TZ8 5.30 5,225,000.00* 138,462.50 0.00
- ----------------------------------------------------------------------------------------------
22 10/01/2007 684503 UB9 5.40 5,480,000.00* 147,960.00 0.00
- ----------------------------------------------------------------------------------------------
23 10/01/2008 684503 UD5 5.50 5,785,000.00* 159,087.50 0.00
- ----------------------------------------------------------------------------------------------
24 10/01/2009 684503 UF0 5.60 6,085,000.00* 170,380.00 0.00
- ----------------------------------------------------------------------------------------------
25 10/01/2010 684503 UH6 5.60 6,410,000.00* 179,480.00 0.00
- ----------------------------------------------------------------------------------------------
26 10/01/2011 684503 UK9 5.70 6,750,000.00* 192,375.00 0.00
- ----------------------------------------------------------------------------------------------
27 10/01/2012 684503 UM5 5.70 4,910,000.00* 139,935.00 0.00
- ----------------------------------------------------------------------------------------------
RI 10/01/2012 684503 UN3 Variable 75,423.00 Residual --> 753.00
- ----------------------------------------------------------------------------------------------
TOTAL $70,840,423.00 $1,887,528.75 $845,753.00
- ----------------------------------------------------------------------------------------------

****Please note that premium on bonds, trustee fees payable, interest
shortfalls, aggregate shortfalls, accrued interest undistributed, and accrued
principal undistributed are at zero.
****Underlying Bond-Orange County FLA Health Facilities
13.125%, 10/01/12, $41,650,000










[LOGO] Bankers Trust Company


September 23, 1996

Merrill Lynch
World Financial Center
North Towers - 9th Floor
250 Vesey Street
New York, NY 10281-1309
Attn: Robert Sheybani

The Depository Trust Company
55 Water Street
New York, NY 10004
Attn: Shandon Chakaraburty

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

Gentlemen:

Pursuant to Section 4.03 of the Trust Agreement dated as of March 28, 1995,
Bankers Trust Company as Trustee for the above-referenced bond issues, hereby
notifies you of the debt service payments for each Series due on October 1,
1996. Attached is a payment schedule for each Series.

If you have any questions, please feel free to call me the above referenced
number.

Very truly yours,



James A. Odorczuk










[LOGO] Bankers Trust Company

September 28, 1996

Kerstin Stanley
Merrill Lynch

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

Kerstin:

For the above referenced issues, the principal and interest information for the
October 1995, April 1996, and October 1996 payment dates are attached. All other
relevant information is as follows:


Premium on Bonds None
Trustee Fees Payable None
Interest Shortfall on Bonds None
Aggregate Shortfall on Bonds None
Accrued Interest undistributed to holders None
Accrued Principal undistributed to holders None
Underlying Bonds on issues Attached


Should you have any questions please call me at (212) 250-6378.

Thank You,


James A. Odorczuk








SERIES 1 CERTIFICATES



- ---------------------------------------------------------------------------------------------------
Certificate Interest Principal
Class Maturity CUSIP Certificate Certificate Amount Amount
Number Date Number Rate Amount Due Due
- ---------------------------------------------------------------------------------------------------

3 10/01/1996 021433 DX2 4.65 80,000.00 1,860.00 80,000.00
- --------------------------------------------------------------------------------------------------
4 04/01/1997 021433 DY0 4.70 80,000.00 1,880.00 0.00
- --------------------------------------------------------------------------------------------------
5 10/01/1997 021433 DZ7 4.70 85,000.00 1,997.50 0.00
- --------------------------------------------------------------------------------------------------
6 04/01/1998 O21433 EA1 4.80 85,000.00 2,040.00 0.00
- --------------------------------------------------------------------------------------------------
7 10/01/1998 021433 EB9 4.80 85,000.00 2,040.00 0.00
- --------------------------------------------------------------------------------------------------
8 04/01/1999 021433 EC7 4.90 90,000.00 2,205.00 0.00
- --------------------------------------------------------------------------------------------------
9 10/01/1999 021433 ED5 4.90 90,000.00 2,205.00 0.00
- --------------------------------------------------------------------------------------------------
10 04/01/2000 021433 EE3 5.00 95,000.00 2,375.00 0.00
- --------------------------------------------------------------------------------------------------
11 10/01/2000 021433 EF0 5.00 95,000.00 2,375.00 0.00
- --------------------------------------------------------------------------------------------------
12 04/01/2001 021433 EG8 5.00 100,000.00 2,500.00 0.00
- --------------------------------------------------------------------------------------------------
13 10/01/2001 021433 EH6 5.00 100,000.00 2,500.00 0.00
- --------------------------------------------------------------------------------------------------
14 04/01/2002 021433 EJ2 5.10 105,000.00 2,677.50 0.00
- --------------------------------------------------------------------------------------------------
15 10/01/2002 021433 EK9 5.10 295,000.00 7,522.50 0.00
- --------------------------------------------------------------------------------------------------
16 04/01/2003 021433 EL7 5.10 100,000.00 2,550.00 0.00
- --------------------------------------------------------------------------------------------------
17 10/01/2003 021433 EM5 5.10 320,000.00 8,160.00 0.00
- --------------------------------------------------------------------------------------------------
18 04/01/2004 021433 EN3 5.20 95,000.00 2,470.00 0.00
- --------------------------------------------------------------------------------------------------
19 10/01/2004 021433 EP8 5.20 340,000.00 8,840.00 0.00
- --------------------------------------------------------------------------------------------------
20 04/01/2005 021433 EQ6 5.25 95,000.00 2,493.75 0.00
- --------------------------------------------------------------------------------------------------
21 10/01/2005 021433 ER4 5.25 360,000.00 9,450.00 0.00
- --------------------------------------------------------------------------------------------------
22 10/01/2008 021433 EX1 5.50 1,495,000.00* 41,112.50 0.00
- --------------------------------------------------------------------------------------------------
23 10/01/2010 021433 FB8 5.60 1,130,000.00* 31,640.00 0.00
- --------------------------------------------------------------------------------------------------
24 10/01/2012 021433 FF9 5.70 1,200,000.00* 34,200.00 0.00
- --------------------------------------------------------------------------------------------------
RI 10/01/2012 021433 FG7 Variable 75,775.00 Residual --> 1,500.00
- --------------------------------------------------------------------------------------------------
TOTAL $6,595,775.00 $175,093.75 $81,500.00
- --------------------------------------------------------------------------------------------------

****Please note that premium on bonds, trustee fees payable, interest
shortfalls, aggregate shortfalls, accrued interest undistributed, and accrued
principal undistributed are at zero.
****Underlying Bond-Altamonte Springs FLA Authority
13.125% 10/01/12, $3,910,000








SERIES 2 CERTIFICATES



- -----------------------------------------------------------------------------------------------
Certificate Interest Principal
Class Maturity CUSIP Certificate Certificate Amount Amount
Number Date Number Rate Amount Due Due
- -----------------------------------------------------------------------------------------------

3 10/01/1996 70252B AR4 4.65 205,000.00 4,766.25 205,000.00
- ------------------------------------------------------------------------------------------------
4 04/01/1997 70252B AS2 4.70 210,000.00 4,935.00 0.00
- ------------------------------------------------------------------------------------------------
5 10/01/1997 70252B AT0 4.70 215,000.00 5,052.50 0.00
- ------------------------------------------------------------------------------------------------
6 04/01/1998 70252B AU7 4.80 220,000.00 5,280.00 0.00
- ------------------------------------------------------------------------------------------------
7 10/01/1998 70252B AV5 4.80 225,000.00 5,400.00 0.00
- ------------------------------------------------------------------------------------------------
8 04/01/1999 70252B AW3 4.90 230,000.00 5,635.00 0.00
- ------------------------------------------------------------------------------------------------
9 10/01/1999 70252B AX1 4.90 240,000.00 5,880.00 0.00
- ------------------------------------------------------------------------------------------------
10 04/01/2000 70252B AY9 5.00 245,000.00 6,125.00 0.00
- ------------------------------------------------------------------------------------------------
11 10/01/2000 70252B AZ6 5.00 250,000.00 6,250.00 0.00
- ------------------------------------------------------------------------------------------------
12 04/01/2001 70252B BA0 5.00 255,000.00 6,375.00 0.00
- ------------------------------------------------------------------------------------------------
13 10/01/2001 70252B BB8 5.00 265,000.00 6,625.00 0.00
- ------------------------------------------------------------------------------------------------
14 04/01/2002 70252B BC6 5.10 270,000.00 6,885.00 0.00
- ------------------------------------------------------------------------------------------------
15 10/01/2002 70252B BD4 5.10 795,000.00 20,272.50 0.00
- ------------------------------------------------------------------------------------------------
16 04/01/2003 70252B BE2 5.10 265,000.00 6,757.50 0.00
- ------------------------------------------------------------------------------------------------
17 10/01/2003 70252B BF9 5.10 860,000.00 21,930.00 0.00
- ------------------------------------------------------------------------------------------------
18 04/01/2004 70252B BG7 5.20 250,000.00 6,500.00 0.00
- ------------------------------------------------------------------------------------------------
19 10/01/2004 70252B BH5 5.20 925,000.00 24,050.00 0.00
- ------------------------------------------------------------------------------------------------
20 04/01/2005 70252B BJ1 5.25 240,000.00 6,300.00 0.00
- ------------------------------------------------------------------------------------------------
21 10/01/2005 70252B BK8 5.25 1,000,000.00 26,250.00 0.00
- ------------------------------------------------------------------------------------------------
22 10/01/2007 70252B BP7 5.40 2,255,000.00* 60,885.00 0.00
- ------------------------------------------------------------------------------------------------
23 10/01/2010 70252B BV4 5.60 5,000,000.00* 140,000.00 0.00
- ------------------------------------------------------------------------------------------------
24 10/01/2012 70252B BZ5 5.70 1,915,000.00* 54,577.50 0.00
- ------------------------------------------------------------------------------------------------
RI 10/01/2012 70252B CA9 Variable 98,857.00 Residual --> 4,675.00
- ------------------------------------------------------------------------------------------------
TOTAL $16,433,857.00 $436,731.25 $209,675.00
- ------------------------------------------------------------------------------------------------

****INFORMATION AS OF 03/31/1996
****Pasco County FLA Health Facilities
13.125% 10/01/12, $9,850,000








SERIES 3 CERTIFICATES



- ----------------------------------------------------------------------------------------------
Certificate Interest Principal
Class Maturity CUSIP Certificate Certificate Amount Amount
Number Date Number Rate Amount Due Due
- ----------------------------------------------------------------------------------------------

3 10/01/1996 684503 TD7 4.65 865,000.00 20,111.25 865,000.00
- ----------------------------------------------------------------------------------------------
4 04/01/1997 684503 TE5 4.70 885,000.00 20,797.50 0.00
- ----------------------------------------------------------------------------------------------
5 10/01/1997 684503 TF2 4.70 905,000.00 21,267.50 0.00
- ----------------------------------------------------------------------------------------------
6 04/01/1998 684503 TG0 4.80 925,000.00 22,200.00 0.00
- ----------------------------------------------------------------------------------------------
7 10/01/1998 684503 TH8 4.80 945,000.00 22,680.00 0.00
- ----------------------------------------------------------------------------------------------
8 04/01/1999 684503 TJ4 4.90 970,000.00 23,765.00 0.00
- ----------------------------------------------------------------------------------------------
9 10/01/1999 684503 TK1 4.90 995,000.00 24,377.50 0.00
- ----------------------------------------------------------------------------------------------
10 04/01/2000 684503 TL9 5.00 1,020,000.00 25,500.00 0.00
- ----------------------------------------------------------------------------------------------
11 10/01/2000 684503 TM7 5.00 1,045,000.00 26,125.00 0.00
- ----------------------------------------------------------------------------------------------
12 04/01/2001 684503 TN5 5.00 1,070,000.00 26,750.00 0.00
- ----------------------------------------------------------------------------------------------
13 10/01/2001 684503 TP0 5.00 1,095,000.00 27,375.00 0.00
- ----------------------------------------------------------------------------------------------
14 04/01/2002 684503 TQ8 5.10 1,125,000.00 28,687.50 0.00
- ----------------------------------------------------------------------------------------------
15 10/01/2002 684503 TR6 5.10 3,190,000.00 81,345.00 0.00
- ----------------------------------------------------------------------------------------------
16 04/01/2003 684503 TS4 5.10 1,100,000.00 28,050.00 0.00
- ----------------------------------------------------------------------------------------------
17 10/01/2003 684503 TT2 5.10 3,425,000.00 87,337.50 0.00
- ----------------------------------------------------------------------------------------------
18 04/01/2004 684503 TU9 5.20 1,065,000.00 27,690.00 0.00
- ----------------------------------------------------------------------------------------------
19 10/01/2004 684503 TV7 5.20 3,675,000.00 95,550.00 0.00
- ----------------------------------------------------------------------------------------------
20 10/01/2005 684503 TX3 5.25 4,975,000.00* 130,593.75 0.00
- ----------------------------------------------------------------------------------------------
21 10/01/2006 684503 TZ8 5.30 5,225,000.00* 138,462.50 0.00
- ----------------------------------------------------------------------------------------------
22 10/01/2007 684503 UB9 5.40 5,480,000.00* 147,960.00 0.00
- ----------------------------------------------------------------------------------------------
23 10/01/2008 684503 UD5 5.50 5,785,000.00* 159,087.50 0.00
- ----------------------------------------------------------------------------------------------
24 10/01/2009 684503 UF0 5.60 6,085,000.00* 170,380.00 0.00
- ----------------------------------------------------------------------------------------------
25 10/01/2010 684503 UH6 5.60 6,410,000.00* 179,480.00 0.00
- ----------------------------------------------------------------------------------------------
26 10/01/2011 684503 UK9 5.70 6,750,000.00* 192,375.00 0.00
- ----------------------------------------------------------------------------------------------
27 10/01/2012 684503 UM5 5.70 4,910,000.00* 139,935.00 0.00
- ----------------------------------------------------------------------------------------------
RI 10/01/2012 684503 UN3 Variable 74,670.00 Residual --> 399.00
- ----------------------------------------------------------------------------------------------
TOTAL $69,994,670.00 $1,867,882.50 $865,399.00
- ----------------------------------------------------------------------------------------------

****Please note that premium on bonds, trustee fees payable, interest
shortfalls, aggregate shortfalls, accrued interest undistributed, and accrued
principal undistributed are at zero.
****Underlying Bond-Orange County FLA Health Facilities
13.125%, 10/01/12, $41,650,000