The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust’s common shares.
See Notes to Financial Statements.
|
NOTES TO FINANCIAL STATEMENTS (unaudited) |
|
Note 1. Organization & Accounting Policies
BlackRock Investment Quality Municipal Trust Inc. (“Investment Quality Municipal”), BlackRock California Investment Quality Municipal Trust Inc. (“California Investment Quality”), BlackRock New Jersey Investment Quality Municipal Trust Inc. (“New Jersey Investment Quality”) and BlackRock New York Investment Quality Municipal Trust Inc. (“New York Investment Quality”) were organized as Maryland corporations. BlackRock Florida Investment Quality Municipal Trust (“Florida Investment Quality”) was organized as a Massachusetts business trust. Municipal Investment Quality, California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality are herein referred to as the Investment Quality Trusts. BlackRock Municipal Income Trust (“Municipal Income”), BlackRock California Municipal Income Trust (“California Income”), BlackRock Florida Municipal Income Trust (“Florida Income”), BlackRock New Jersey Municipal Income Trust (“New Jersey Income”), BlackRock New York Municipal Income Trust (“New York Income”) (collectively the “Income Trusts”) and BlackRock Long-Term Municipal Advantage Trust (“Long-Term Municipal”) were organized as Delaware statutory trusts. The Investment Quality Trusts, Income Trusts and Long-Term Municipal are referred to herein collectively as the “Trusts”. Investment Quality Municipal and Municipal Income are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”). Long-Term Municipal, California Investment Quality, California Income, Florida Investment Quality, Florida Income, New Jersey Investment Quality, New Jersey Income, New York Investment Quality and New York Income are registered as non-diversified, closed-end management investment companies under the 1940 Act.
Long-Term Municipal was organized on November 7, 2005 and had no capital transactions until January 4, 2006 when the Trust sold 9,704 common shares for $139,010 to BlackRock Funding, Inc. Investment operations for Long-Term Municipal commenced on February 28, 2006. Long-Term Municipal incurred organization costs which were deferred from the organization date until the commencement of operations.
Under the Trusts’ organizational documents, their officers and Trustees (as defined below) are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. In addition, in the normal course of business, the Trusts enter into contracts with their vendors and others that provide for general indemnifications. The Trusts’ maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Trusts. However, based on experience, the Trusts consider the risk of loss from such claims to be remote.
The following is a summary of significant accounting policies followed by the Trusts.
Investments Valuation: 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 of Trustees (“Trustees”) or Board of Directors, as the case may be (each, a “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. Swap quotations are provided by dealers selected under supervision of the Board. A futures contract is valued at the last sale price as of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value per share. Any investments or other assets for which such current market quotations are not readily available are valued at fair value (“Fair Value Assets”) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust’s Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets is subsequently reported to the Board.
When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations are based upon all available factors that the Trust’s investment advisor and/or sub-advisor deems relevant.
In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Trusts’ financial statements, if any, has not been determined.
In addition, in February 2007, Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Trusts’ financial statements, if any, has not been determined.
Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first-out, for both financial reporting and federal income tax purposes. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.
Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period
67
the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract.
Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.
Forward Starting Swaps: A forward starting swap is are an agreement for an interest rate swap asset or liability to be created or sold in the future. Interest rate swaps are an agreement in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. The Trusts generally intend to close each forward starting swap before the accrual date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward starting swap.
During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by “marking-to-market” daily based upon quotations from market makers to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust’s basis in the contract, if any.
Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform and that there may be unfavorable changes in the fluctuation of interest and/or exchange rates. However, the Advisor of the Trusts monitor swaps and do not anticipate non-performance by any counterparty.
Segregation: In cases in which the 1940 Act, and the interpretive positions of the Securities and Exchange Commission (the “Commission”) require that each Trust segregate assets in connection with certain investments (e.g., when-issued securities, swap agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, 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.
Federal Income Taxes: It is each Trust’s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income and net realized capital gains, if any, to shareholders. Therefore, no federal income tax provisions have been recorded.
In July 2006, Financial Accounting Standards Board released FASB Interpretation No. 48 (“FIN 48”) “Accounting for Uncertainty in Income Taxes.” FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable; a reduction of deferred tax asset; an increase in deferred tax liability; or a combination thereof. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the Trusts’ financial statements, if any, has not yet been determined.
Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 6.
Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities including investment and swap valuations at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and such differences may be material.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees/Directors (“Independent Trustees”) are required to 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 BlackRock Closed-End Funds selected by the Independent Trustees. These amounts are shown on the Statement of Assets and Liabilities as “Investments in affiliates”. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts in such Trusts.
The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Independent Trustees in order to match its deferred compensation obligations.
Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally pro rated to the Trusts on the basis of relative net assets of all the BlackRock Closed-End Funds.
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Note 2. Tender Option Bond Residuals
Long-Term Municipal invests in highly leveraged residual certificates (“TOB Residuals”) issued by tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which Long-Term Municipal, or an agent on behalf, transfers municipal securities. The TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates, which are generally issued to Long-Term Municipal. The transfer of the municipal securities to a TOB does not qualify for sale treatment under Statement of Financial Accounting Standards No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities”, and therefore the municipal securities deposited into a TOB are presented in Long-Term Municipal’s schedule of investments and the proceeds from the transaction are reported as a liability for trust certificates of Long-Term Municipal. Interest income from the underlying security is recorded by Long-Term Municipal on an accrual basis. Interest expense incurred on the secured borrowing and other expenses relating to remarketing, administration and trustee services to a TOB are reported as expenses of Long-Term Municipal. 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. The residual interests held by the Portfolios include the right of the Portfolios (1) to cause the holders of a proportional share of floating rate certificates to tender their certificates at par, and (2) to transfer a corresponding share of the municipal securities from the TOB to the Portfolios. The proceeds received from the transaction are used by Long-Term Municipal to purchase additional municipal bonds or other investments permitted by Long-Term Municipal’s investment policies. At April 30, 2007, the aggregate value of the underlying municipal securities transferred to TOB’s and the liability for trust certificates amounted to $173,233,173 and $172,943,596, respectively.
Financial transactions executed through TOB’s generally will under perform the market for fixed rate municipal bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, Long-Term Municipal’s investment in TOB Residuals likely will adversely affect the Trust’s net investment income and distributions to shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect the Trust’s net asset value per share. Long-Term Municipal invests in highly leveraged TOB Residuals and consequently may lose money in excess of the amount of its investment. Long-Term Municipal invests in residual certificates for the purpose of using economic leverage as a more flexible alternative to the issuance of preferred shares.
Note 3. Agreements and Other Transactions with Affiliates and Related Parties
Each Trust has an Investment Management Agreement with BlackRock Advisors, LLC (the “Advisor”), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (“BFM”), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. Merrill Lynch & Co., Inc. and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc. The investment management agreement for each Income Trust and Long-Term Municipal covers both investment advisory and administration services. Each Investment Quality Trust has an Administration Agreement with the Advisor.
The Trust’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the Investment Quality Trusts and 0.60% for the Income Trusts, of the Trust’s average weekly managed assets. “Managed Assets” means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses on the Income Trusts as a percentage of Managed Assets as follows: 0.25% for the first five years of each of the Trust’s operations from 2001 through 2006, 0.20% in 2007, 0.15% in 2008, 0.10% in 2009 and 0.05% in 2010.
The administration fee to the advisor is computed weekly and payable monthly based on an annual rate of 0.15% for the Municipal Investment Quality Trust and 0.10% for the California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality of the Trusts’ average weekly managed assets.
Long-Term Municipal’s investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 1.00% of the average weekly net assets. ‘‘Net Assets’’ means the total assets of the Trust minus the sum of accrued liabilities. The Advisor has voluntarily agreed to waive a portion of the investment advisory or other expenses of Long-Term Municipal in the amount of 0.40% of the average weekly value of the Long-Term Municipal’s Net Assets for the first five years of the Trust’s operations from 2006 through 2011 and for declining amounts for the following three years, 0.30% in 2012, 0.20% in 2013 and 0.10% in 2014.
The Advisor has agreed to reimburse its advisory fees by the amount of investment advisory fees each Trust pays to the Advisor indirectly through its investments in affiliated money market funds, which is shown on the Statement of Operations as “fees waived by Advisor.”
The Advisor pays BFM fees for its sub-advisory services.
Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for costs of employees that provide pricing, secondary market support, and compliance services to each Trust. For the six months ended April 30, 2007, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:
| | | | |
Trust | | | Amount | |
| |
| |
Investment Quality Municipal | | $ | 8,134 | |
Municipal Income | | | 17,195 | |
Long-Term Municipal | | | 3,689 | |
California Investment Quality | | | 474 | |
California Income | | | 6,773 | |
Florida Investment Quality | | | 564 | |
| | | | |
Trust | | | Amount | |
| |
| |
Florida Income | | $ | 3,142 | |
New Jersey Investment Quality | | | 479 | |
New Jersey Income | | | 3,439 | |
New York Investment Quality | | | 649 | |
New York Income | | | 5,873 | |
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Pursuant to the terms of their custody agreement, each Trust may receive earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statement of Operations as “fees paid indirectly”.
Investments in companies considered to be an affiliate of the Trusts, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
| | | | | | | | | | | |
Trust | | Portfolio Company | | Net Activity
(000) | | Dividend/
Interest
Income | |
| |
| |
| |
|
| |
Investment Quality Municipal | | Merrill Lynch Institutional Tax Exempt Fund | | | | 4,300 | | | $ | 39,535 | |
Municipal Income | | Merrill Lynch Institutional Tax Exempt Fund | | | | 12,600 | | | | 83,108 | |
Long-Term Municipal | | Merrill Lynch Institutional Tax Exempt Fund | | | | 7,500 | | | | 2,847 | |
California Investment Quality | | CMA California Mun. Money Fund | | | | 1,004 | | | | 6,933 | |
California Income | | CMA California Mun. Money Fund | | | | 13,143 | | | | 46,302 | |
Florida Investment Quality | | CMA Florida Mun. Money Fund | | | | 101 | | | | 921 | |
Florida Income | | CMA Florida Mun. Money Fund | | | | 2,510 | | | | 11,862 | |
New Jersey Investment Quality | | CMA New Jersey Mun. Money Fund | | | | 1,100 | | | | 689 | |
New Jersey Income | | CMA New Jersey Mun. Money Fund | | | | 4,602 | | | | 5,004 | |
New York Investment Quality | | CMA New York Mun. Money Fund | | | | 103 | | | | 4,184 | |
New York Income | | CMA New York Mun. Money Fund | | | | 1,215 | | | | 17,465 | |
During the six months ended April 30, 2007, Merrill Lynch & Co., Inc., through their affiliated broker dealer, Merrill Lynch, Pierce, Fenner & Smith, Inc., earned commissions on transactions of securities as follows:
| | | | |
Trust | | Commission
Amount | |
| |
| |
Long-Term Municipal Advantage | | | $ | 1,320 | | |
California Investment Quality | | | | 66 | | |
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the six months ended April 30, 2007, were as follows:
| | | | | | | |
Trust | | Purchases | | Sales | |
| |
| |
| |
Investment Quality Municipal | | $ | 52,997,461 | | $ | 32,442,458 | |
Municipal Income | | | 127,488,188 | | | 92,790,046 | |
Long-Term Municipal | | | 84,008,564 | | | 96,087,599 | |
California Investment Quality | | | 5,842,061 | | | 3,139,516 | |
California Income | | | 47,696,360 | | | 54,955,373 | |
Florida Investment Quality | | | 5,853,795 | | | 2,145,627 | |
| | | | | | | |
Trust | | Purchases | | Sales | |
| |
| |
| |
Florida Income | | $ | 17,357,532 | | $ | 12,112,229 | |
New Jersey Investment Quality | | | 6,574,803 | | | 2,996,764 | |
New Jersey Income | | | 23,889,086 | | | 26,055,078 | |
New York Investment Quality | | | 8,459,618 | | | 8,360,098 | |
New York Income | | | 41,465,000 | | | 37,155,581 | |
There were no purchases or sales of U.S. government securities for the six months ended April 30, 2007.
Details of open forward starting swap agreements at April 30, 2007 were as follows:
| | | | | | | | | | | | | | | | | | | |
Trust | | Notional
Amount | | Fixed
Rate(a) | | Counter
Party | | Floating Rate | | Effective
Date | | Termination
Date | | Unrealized
Appreciation
(Depreciation) | |
| |
| |
| |
| |
| |
| |
| |
| |
Investment | | $ | 12,000,000 | | 3.756 | % | JP Morgan | | 1-week BMA Municipal Swap Index | | 05/04/07 | | 05/04/16 | | | $ | (118,200 | ) | |
Quality | | | 13,600,000 | | 3.595 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/14/07 | | 06/14/17 | | | | 71,419 | | |
Municipal | | | 40,250,000 | | 3.636 | | JP Morgan | | 1-week BMA Municipal Swap Index | | 06/27/07 | | 06/27/17 | | | | 92,173 | | |
| | | 8,500,000 | | 3.878 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/21/07 | | 06/21/32 | | | | 113,397 | | |
| | | | | | | | | | | | | | | |
|
| | |
| | | | | | | | | | | | | | | | $ | 158,789 | | |
| | | | | | | | | | | | | | | |
|
| | |
Municipal | | | 46,750,000 | | 3.756 | % | JP Morgan | | 1-week BMA Municipal Swap Index | | 05/04/07 | | 05/04/16 | | | $ | (460,488 | ) | |
Income | | | 34,500,000 | | 3.636 | | JP Morgan | | 1-week BMA Municipal Swap Index | | 06/27/07 | | 06/27/17 | | | | 79,005 | | |
| | | 51,325,000 | | 3.595 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/14/07 | | 06/14/17 | | | | 269,528 | | |
| | | 32,000,000 | | 3.878 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/21/07 | | 06/21/32 | | | | 426,909 | | |
| | | | | | | | | | | | | | | |
|
| | |
| | | | | | | | | | | | | | | | $ | 314,954 | | |
| | | | | | | | | | | | | | | |
|
| | |
Long-Term | | | | | | | | | | | | | | | | | | | |
Municipal | | | 13,000,000 | | 3.636 | % | JP Morgan | | 1-week BMA Municipal Swap Index | | 06/27/07 | | 06/27/17 | | | $ | 29,770 | | |
| | | | | | | | | | | | | | | |
|
| | |
California | | | 10,500,000 | | 3.987 | % | JP Morgan | | 1-week BMA Municipal Swap Index | | 05/04/07 | | 05/04/27 | | | $ | 45,588 | | |
Income | | | 8,000,000 | | 3.878 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/21/07 | | 06/21/32 | | | | 106,727 | | |
| | | | | | | | | | | | | | | |
|
| | |
| | | | | | | | | | | | | | | | $ | 152,315 | | |
| | | | | | | | | | | | | | | |
|
| | |
70
| | | | | | | | | | | | | | | | | | | | |
Trust | | Notional
Amount | | Fixed
Rate(a) | | Counter
Party | | Floating Rate | | Effective
Date | | Termination
Date | | Unrealized
Appreciation
(Depreciation) | |
| |
| |
| |
| |
| |
| |
| |
| |
Florida Investment | | | | | | | | | | | | | | | | | | |
Quality | | $ | 2,500,000 | | | 3.580 | % | JP Morgan | | 1-week BMA Municipal Swap Index | | 06/04/07 | | 06/04/14 | | | $ | 7,625 | | |
| | | | | | | | | | | | | | | | |
|
| | |
Florida | | | 4,000,000 | | | 3.987 | % | JP Morgan | | 1-week BMA Municipal Swap Index | | 05/04/07 | | 05/04/27 | | | | 17,367 | | |
Income | | | 3,300,000 | | | 3.607 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/20/07 | | 06/20/17 | | | | (27,489 | ) | |
| | | | | | | | | | | | | | | | |
|
| | |
| | | | | | | | | | | | | | | | | | (10,122 | ) | |
| | | | | | | | | | | | | | | | |
|
| | |
New Jersey | | | | | | | | | | | | | | | | | | | | |
Income | | | 1,100,000 | | | 3.883 | % | CitiBank | | 1-week BMA Municipal Swap Index | | 06/20/07 | | 06/20/37 | | | | 20,625 | | |
| | | | | | | | | | | | | | | | |
|
| | |
New York | | | 1,000,000 | | | 3.883 | % | CitiBank | | 1-week BMA Municipal Swap Index | | 06/20/07 | | 06/20/37 | | | | 18,750 | | |
Income | | | 7,750,000 | | | 3.878 | | CitiBank | | 1-week BMA Municipal Swap Index | | 06/21/07 | | 06/21/32 | | | | 103,392 | | |
| | | | | | | | | | | | | | | | |
|
| | |
| | | | | | | | | | | | | | | | | | 122,142 | | |
| | | | | | | | | | | | | | | | |
|
| | |
(a) Trust will pay fixed interest rate and receive floating interest rate beginning on the effective date.
BMA—Bond Market Association.
Note 5. Income Tax Information
The tax character of distributions paid during the year ended October 31, 2006 were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | Year ended October 31, 2006 | |
| |
| |
Distributions Paid From: | | Tax-exempt Income | | Ordinary
Income | | Long-term
Capital Gains | | Total Distributions | |
| |
| |
| |
| |
| |
Investment Quality Municipal | | | $ | 22,393,077 | | | | $ | — | | | | $ | — | | | | $ | 22,393,077 | | |
Municipal Income | | | | 55,312,288 | | | | | 75,431 | | | | | — | | | | | 55,387,719 | | |
Long-Term Municipal | | | | 6,393,277 | | | | | — | | | | | — | | | | | 6,393,277 | | |
California Investment Quality | | | | 1,069,125 | | | | | — | | | | | — | | | | | 1,069,125 | | |
California Income | | | | 17,652,513 | | | | | — | | | | | — | | | | | 17,652,513 | | |
Florida Investment Quality | | | | 1,193,991 | | | | | 2,626 | | | | | 339,437 | | | | | 1,536,054 | | |
Florida Income | | | | 7,830,368 | | | | | — | | | | | — | | | | | 7,830,368 | | |
New Jersey Investment Quality | | | | 1,051,755 | | | | | — | | | | | 152,406 | | | | | 1,204,161 | | |
New Jersey Income | | | | 9,057,294 | | | | | — | | | | | — | | | | | 9,057,294 | | |
New York Investment Quality | | | | 1,423,375 | | | | | — | | | | | 129,549 | | | | | 1,552,924 | | |
New York Income | | | | 14,642,419 | | | | | — | | | | | — | | | | | 14,642,419 | | |
For federal income tax purposes, the following Trusts had capital loss carryforwards at April 30, 2007, the Trust’s last tax year-end except for New York Income which had its last tax year-end at July 31, 2006. These amounts may be used to offset future realized capital gains, if any:
| | | | | | | | | | | | | | | | | | | | | | |
Trust | | Capital Loss
Carryforward
Amount | | Expires | | Trust | | Capital Loss
Carryforward
Amount | | Expires | |
| |
| |
| |
| |
| |
| |
Investment Quality Municipal | | | $ | 159,146 | | | | | 2012 | | | California Income | | | $ | 389,453 | | | | 2010 | |
| | | | 904,137 | | | | | 2014 | | | | | | | | 124,338 | | | | 2011 | |
| | |
|
| | | | | | | | | | | | | | | | | | |
| | | $ | 1,063,283 | | | | | | | | | | | | | 4,943,577 | | | | 2012 | |
| | |
|
| | | | | | | | | | | | | | | | | | |
Municipal Income | | | $ | 11,431,206 | | | | | 2011 | | | | | | | | 1,350,312 | | | | 2014 | |
| | | | | | | | | | | | | | | |
|
| | | | | |
| | | | 15,767,388 | | | | | 2012 | | | | | | | $ | 6,807,680 | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | |
| | | | 4,991,782 | | | | | 2014 | | | | Florida Income | | | $ | 796,318 | | | | 2012 | |
| | |
|
| | | | | | | | | | | |
|
| | | | | |
| | | $ | 32,190,376 | | | | | | | | | New Jersey Income | | | $ | 610,058 | | | | 2012 | |
| | |
|
| | | | | | | | | | | |
|
| | | | | |
Long-Term Municipal | | | $ | 1,005,040 | | | | | 2014 | | | | New York Income | | | $ | 276,399 | | | | 2012 | |
| | |
|
| | | | | | | | | | | |
|
| | | | | |
Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts.
Note 6. Capital
There are 200 million of $0.01 par value common shares authorized for each of the Investment Quality Trusts. There are an unlimited number of $0.001 par value common shares authorized for the Income Trusts and Long-Term Municipal. Each Trust may classify or reclassify any unissued common shares into one or more series of Auction Market Preferred Shares (“preferred shares”). At April 30, 2007, the shares owned by an affiliate of the Advisor of Long-Term Municipal were 9,704.
71
During the six months ended April 30, 2007 and the year ended October 31, 2006, the following Trusts issued additional shares under their respective dividend reinvestment plan:
| | | | | |
Trust | | April 30, 2007 | | October 31, 2006 | |
| |
| |
| |
Municipal Income | 94,345 | | 183,235 | |
Long-Term Municipal | 36,210 | | 34,238 | |
California Income | 29,765 | | 45,581 | |
Florida Income | 8,936 | | 14,192 | |
New Jersey Income | 19,095 | | 42,417 | |
New York Income | 27,760 | | 52,616 | |
Long-Term Municipal, which commenced operations on February 28, 2006, issued 13,040,000 common shares under the initial public offering. An additional 225,000 shares were issued by the underwriters’ exercising their over-allotment option. Offering costs incurred in connection with the offering of common shares have been charged against the proceeds from the initial common share offering in the amount of $381,825.
As of April 30, 2007, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
| | | | | | | | | | | | | | | | | |
Trust | | Series | | Shares | | Trust | | Series | | Shares | |
| | |
| |
| |
| | |
| |
| |
Investment Quality Municipal | | T7 | | | 3,262 | | | California Income | | T7 | | | 2,639 | | |
| | T28 | | | 2,600 | | | | | R7 | | | 2,639 | | |
Municipal Income | | M7 | | | 3,001 | | | Florida Investment Quality | | R7 | | | 340 | | |
| | T7 | | | 3,001 | | | Florida Income | | T7 | | | 2,302 | | |
| | W7 | | | 3,001 | | | New Jersey Investment Quality | | T7 | | | 300 | | |
| | R7 | | | 3,001 | | | New Jersey Income | | R7 | | | 2,552 | | |
| | F7 | | | 3,001 | | | New York Investment Quality | | F7 | | | 392 | | |
California Investment Quality | | W7 | | | 300 | | | New York Income | | W7 | | | 2,195 | | |
| | | | | | | | | | F7 | | | 2,195 | | |
Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. Dividends on 28-day preferred shares are cumulative at a rate which resets every 28 days based on the results of an auction. The dividend ranges and average on the preferred shares for each of the Trusts for the six months ended April 30, 2007 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust | | Series | | Low | | High | | Average | | Trust | | Series | | Low | | High | | Average |
| | |
| |
| |
| |
| |
| | |
| |
| |
| |
|
Investment Quality Municipal | | T7 | | | 3.13 | % | | 3.90 | % | | 3.48 | % | | California Income | | T7 | | | 3.08 | % | | 3.96 | % | | 3.48 | % |
| | T28 | | | 3.35 | | | 3.65 | | | 3.55 | | | | | R7 | | | 2.90 | | | 4.00 | | | 3.33 | |
Municipal Income | | M7 | | | 3.10 | | | 3.90 | | | 3.55 | | | Florida Investment Quality | | R7 | | | 3.50 | | | 5.40 | | | 3.96 | |
| | T7 | | | 3.10 | | | 3.85 | | | 3.52 | | | Florida Income | | T7 | | | 3.30 | | | 3.90 | | | 3.55 | |
| | W7 | | | 3.16 | | | 3.90 | | | 3.49 | | | New Jersey Investment Quality | | T7 | | | 2.95 | | | 5.11 | | | 3.33 | |
| | R7 | | | 3.00 | | | 3.88 | | | 3.50 | | | New Jersey Income | | R7 | | | 3.00 | | | 3.80 | | | 3.39 | |
| | F7 | | | 3.10 | | | 4.00 | | | 3.54 | | | New York Investment Quality | | F7 | | | 2.90 | | | 3.80 | | | 3.38 | |
California Investment Quality | | W7 | | | 3.00 | | | 5.10 | | | 3.38 | | | New York Income | | W7 | | | 2.85 | | | 3.95 | | | 3.18 | |
| | | | | | | | | | | | | | | | F7 | | | 2.89 | | | 4.00 | | | 3.19 | |
A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%.
The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Declaration of Trust/Articles Supplementary, are not satisfied.
The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, 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 subclassification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company.
Note 7. Concentration Risk
The Trusts concentrate their investments in securities issued by state agencies, other governmental entities and U.S. Territories. The Trusts are more susceptible to adverse financial, social, environmental, economic, regulatory and political factors that may affect these states, other governmental entities and U.S. Territories, which could seriously affect the ability of these states and their municipal subdivisions to meet continuing obligations for principal and interest payments and therefore could impact the value of the Trusts’ investments and net asset value per share, than if the Trusts were not concentrated in securities issued by state agencies, other governmental entities and U.S. Territories.
72
Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Portfolios of Investments.
Note 8. Subsequent Events
Subsequent to April 30, 2007, the Board of each Trust declared dividends from undistributed earnings per common share payable June 1, 2007, to shareholders of record on May 15, 2007. The per share common dividends declared were as follows:
| | | | | | | | | | | |
Trust | | Common Dividend
Per Share | | Trust | | Common Dividend
Per Share | |
| |
| |
| |
| |
Investment Quality Municipal | $ | 0.085000 | | | Florida Income | $ | 0.075375 | | |
Municipal Income | | 0.082625 | | | New Jersey Investment Quality | | 0.068000 | | |
Long-Term Municipal | | 0.055000 | | | New Jersey Income | | 0.079625 | | |
California Investment Quality | | 0.048000 | | | New York Investment Quality | | 0.070000 | | |
California Income | | 0.076074 | | | New York Income | | 0.075339 | | |
Florida Investment Quality | | 0.048000 | | | | | | | |
The dividends declared on preferred shares for the period May 1, 2007 to May 31, 2007 for each of the Trusts were as follows:
| | | | | | | | | | | | | | | | | | | | |
Trust | | Series | | Dividends
Declared | | Trust | | Series | | Dividends
Declared | |
| | |
| |
| |
| | |
| |
| |
Investment Quality Municipal | | T7 | | | $ | 293,091 | | | California Income | | | T7 | | | $ | 233,710 | | |
| | T28 | | | | 180,492 | | | | | | R7 | | | | 192,330 | | |
Municipal Income | | M7 | | | | 271,951 | | | Florida Investment Quality | | | R7 | | | | 25,432 | | |
| | T7 | | | | 268,229 | | | Florida Income | | | T7 | | | | 203,635 | | |
| | W7 | | | | 270,510 | | | New Jersey Investment Quality | | | T7 | | | | 25,746 | | |
| | R7 | | | | 214,812 | | | New Jersey Income | | | R7 | | | | 179,252 | | |
| | F7 | | | | 218,383 | | | New York Investment Quality | | | F7 | | | | 29,267 | | |
California Investment Quality | | W7 | | | | 25,083 | | | New York Income | | | W7 | | | | 188,265 | | |
| | | | | | | | | | | | F7 | | | | 138,746 | | |
73
DIVIDEND REINVESTMENT PLANS
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 elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.
At present after an Investment Quality Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participant’s account, by the purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open market purchases”). The Investment Quality Trusts do not presently issue any new shares under the Plan, which serves as agent for the shareholders in administering the Plan.
After the Income Trusts and Long-Term Municipal declare a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by open market purchases. If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases.
At a meeting of the Boards of Trustees of the Investment Quality Trusts on November 21, 2006, the Boards approved an amendment to the Dividend Reinvestment Plans of each Investment Quality Trust. Although the Plans presently permit shares to be purchases only the open market, as a result of the amendment, the Plans will permit purchases of newly issued shares on terms similar to the Income Trusts described in the next paragraph. The amendments will take effect on April 1, 2007.
Participants in the Plan may withdraw from the Plan upon written notice to the Plan Agent and will receive certificates for whole Trust shares and a cash payment for any fraction of a Trust share.
The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.
Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan, however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants who 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 250 Royall Street, Canton, MA 02021, or (800) 699-1BFM.
74
ADDITIONAL INFORMATION
Each Trust listed for trading on the New York Stock Exchange (“NYSE”) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSE’s listing standards and each Trust listed for trading on the American Stock Exchange (“AMEX”) has filed with the AMEX its corporate governance certification regarding compliance with the AMEX’s listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.
The Trusts do not make available copies of their respective 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 such Trust’s offering and the information contained in each Trust’s Statement of Additional Information may have become outdated.
During the period, there were no material changes in any Trust’s investment objective or policies or to any Trust’s charters or by-laws that were not approved by the shareholders or in the principle risk factors associated with investment in the Trusts.
Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www1.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRock’s website into this report.
Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. Kapito—Director and Vice Chairman of the Advisor and the Sub-Advisor, Donald Burke, Anne Ackerley, Bartholomew Battista, Vincent Tritto and Brian Kindelan—Managing Directors of the Advisor and the Sub-Advisor, Neal Andrews, James Kong and Jay Fife—Managing Director of the Sub-Advisor, Spencer Fleming—Director of the Advisor and the Sub-Advisor, Robert Mahar—Director of the Sub-Advisor.
Important Information Regarding the BlackRock Closed-End Funds Semi-Annual Investor Update
The Semi-Annual Investor Update (“Update”) is available on the Internet and may be accessed through BlackRock’s website at http://www1.blackrock.com. The Update provides information on the fixed income markets and summaries of BlackRock Closed-End Funds’ investment objectives and strategies. It also contains recent news regarding the BlackRock Closed-End Funds.
If you would like to receive a hard copy of the BlackRock Closed-End Funds Semi-Annual Investor Update, please call (800) 699-1BFM.
75
BlackRock Closed-End Funds
| |
Trustees
Ralph L. Schlosstein, Chairman
Andrew F. Brimmer, Lead Trustee1
Richard E. Cavanagh, Lead Trustee2
Kent Dixon
Frank J. Fabozzi
Kathleen F. Feldstein
R. Glenn Hubbard
Robert S. Kapito3 Officers
Robert S. Kapito, President
Donald C. Burke, Treasurer
Bartholomew Battista, Chief Compliance Officer
Anne Ackerley, Vice President
Neal Andrews, Assistant Treasurer
Jay Fife, Assistant Treasurer
Spencer Fleming, Assistant Treasurer
James Kong, Assistant Treasurer
Robert Mahar, Assistant Treasurer
Vincent B. Tritto, Secretary
Brian P. Kindelan, Assistant Secretary Investment Advisor
BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM Sub-Advisor
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022 Accounting Agent and Custodian
State Street Bank and Trust Company
2 Avenue De Lafayette
Boston, MA 02111 | Transfer Agent
Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
(800) 699-1BFM Auction Agent4
Bank of New York
101 Barclay Street, 7 West
New York, NY 10286 Auction Agent5
Deutsche Bank Trust Company Americas
60 Wall Street, 8th Floor
New York, NY 10005 Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116 Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
4 Times Square
New York, NY 10036 Legal Counsel – Independent Trustees
Debevoise & Plimpton LLP
919 Third Avenue
New York, NY 10022 This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. BlackRock Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM |
| |
1 | Retired, effective December 31, 2006. |
2 | Effective as of January 1, 2007. |
3 | Resigned, effective December 31, 2006. |
4 | For the Income Trusts. |
5 | For the Investment Quality Trusts. |
The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800)699-1BFM.
The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor’s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the “Commission”) at http://www.sec.gov.
Information on how proxies relating to the Trusts’ voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.
The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust’s Form N-Q will be available on the Commission’s website at http://www.sec.gov. Each Trust’s Form N-Q, may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Form N-Q, may also be obtained upon request without charge by calling (800) 699-1BFM.
| |
This report is for shareholder information. This is not a prospectus intended for
use in the purchase or sale of Trust shares. Statements and other information
contained in this report are as dated and are subject to change.
CEF-SEMI-2-0407 | 
|
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6. Schedule of Investments.
The Registrant’s Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable for semi-annual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
(a) Not applicable for semi-annual reports.
(b) Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Companies and Affiliated Purchasers.
Not applicable because no such purchases were made during the period covered by this report.
Item 10. Submission of Matters to a Vote of Security Holders.
No matters were voted on by shareholders during the period covered by this report.
Item 11. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded, as of that date, that the Registrant’s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant’s management, including its principle executive and principle financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the Registrant's 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.
(a) (1) Not applicable.
(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 attached as EX-99.CERT.
(a) (3) Not applicable.
(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 furnished as EX-99.906CERT.
SIGNATURES
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.
(Registrant) BlackRock Florida Municipal Income Trust
| By: | | /s/ Donald C. Burke | |
Name: | | Donald C. Burke |
Title: | | Treasurer |
Date: | | July 3, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | | /s/ Robert S. Kapito | |
Name: | | Robert S. Kapito |
Title: | | Principal Executive Officer |
Date: | | July 3, 2007 |
| By: | | /s/ Donald C. Burke | |
Name: | | Donald C. Burke |
Title: | | Principal Financial Officer |
Date: | | July 3, 2007 |
