Bif Tax Exempt Fund NCSRS Certified semi-annual shareholder report (management investment company)

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-03111 and 811-21301

Name of Fund: BIF Tax-Exempt Fund and Master Tax-Exempt LLC

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BIF Tax-
Exempt Fund and Master Tax-Exempt LLC, 40 East 52^ndStreet, New York, NY 10022

Registrant’s telephone number, including area code: (800) 626-1960

Date of fiscal year end: 03/31/2011

Date of reporting period: 09/30/2010

Item 1 – Report to Stockholders

Semi-Annual Report (Unaudited)

BIF Tax-Exempt Fund

September 30, 2010

Not FDIC Insured • No Bank Guarantee • May Lose Value


Table of Contents
	Page
Dear Shareholder	3
Semi-Annual Report:
Fund Information	4
Disclosure of Expenses	4
Fund Financial Statements:
Statement of Assets and Liabilities	5
Statement of Operations	5
Statements of Changes in Net Assets	6
Fund Financial Highlights	7
Fund Notes to Financial Statements	8
Portfolio Information	10
Master LLC Financial Statements:
Schedule of Investments	11
Statement of Assets and Liabilities	21
Statement of Operations	21
Statements of Changes in Net Assets	22
Master LLC Financial Highlights	22
Master LLC Notes to Financial Statements	23
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement	25
Officers and Directors	29
Additional Information	30

2 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Dear Shareholder

The global economic recovery that began in 2009 has continued on its choppy course this year, delivering mixed economic data and gradual if uneven
improvement of investor sentiment. The risks of a double-dip recession continue to recede, but the economy remains mired in a slow-growth environ-
ment. The major short-term ambiguities that kept market participants on the fence — the US financial reform bill, political uncertainty, European bank
stress test results, and European sovereign funding — have all abated to some degree, allowing market conditions to regain some degree of normalcy
and demonstrate growth. In the United States, the National Bureau of Economic Research declared that the “Great Recession” ended in June 2009.
Spanning December 2007 to June 2009, this marked the longest reported recession since the Great Depression. Structural problems of ongoing
deleveraging and weak spending among businesses and households weigh heavily on the pace of economic growth. The Federal Reserve Board has
made it clear that additional policy action will be needed to combat the slow pace of growth, high unemployment, and deflation risks.

The high levels of volatility experienced in global equity markets throughout 2009 continued into 2010 as uncertainty driven by mixed economic data
and lingering credit issues caused stocks to trade in both directions, but by the end of the first quarter, most markets had managed to post gains. The
second quarter, in contrast, brought higher levels of volatility and a “flight to quality” as investor sentiment was dominated by fears of a double-dip reces-
sion. Global equity markets saw negative quarterly returns — and for many markets, the first significant downturn since the bull market began in March
2009. As the end of the 12-month period drew near, economic data turned less negative and strong corporate earnings reports became increasingly
consistent. These factors along with the anticipation of further quantitative easing drove equity markets higher in the third quarter, with most markets
recapturing their second quarter losses and moving into positive territory year-to-date. International equities turned positive, posting gains on both a
six- and 12-month basis. In the US, both large and small cap equities posted robust gains for the 12-month period; however large cap stocks remain
negative on a six-month basis while small caps turned positive.

In fixed income markets, yields fluctuated but generally declined over the past 12 months amid heightened uncertainty. Weak economic data, lingering
credit problems and, near the end of the period, the expectation of additional quantitative easing drove interest rates lower and bond prices higher.
Treasuries rallied over the period, modestly outperforming the credit spread sectors of the market. Corporate credit spreads benefited from the low inter-
est rate environment and high yield fixed income became increasingly attractive due to declining default rates and better-than-expected results on
European bank stress tests. Tax-exempt municipal bonds performed well over the 12-month period, driven primarily by technical factors including favor-
able supply-and-demand dynamics.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates
remained low. Yields on money market securities remain near all-time lows.


Against this backdrop, the major market averages posted the following returns:
Total Returns as of September 30, 2010	6-month	12-month
US large cap equities (S&P 500 Index)	(1.42)%	10.16%
US small cap equities (Russell 2000 Index)	0.25	13.35
International equities (MSCI Europe, Australasia, Far East Index)	0.20	3.27
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.07	0.13
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)	13.20	10.23
US investment grade bonds (Barclays Capital US Aggregate Bond Index)	6.05	8.16
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)	5.51	5.81
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)	6.55	18.24

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

As global economic conditions continue to improve, investors across the world continue to face uncertainty about the future of economic growth. Through
periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and
investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® maga-
zine, as well as its quarterly companion newsletter, Shareholder Perspectives. We thank you for entrusting BlackRock with your investments, and we look
forward to your continued partnership in the months and years ahead.

THIS PAGE NOT PART OF YOUR FUND REPORT

Fund Information

Current Seven-Day Yields


	7-Day	7-Day
	SEC Yield	Yield
As of September 30, 2010	0.04%	0.04%

The 7-Day SEC Yield may differ from the 7-Day Yield shown above due to the fact
that the 7-Day SEC Yield excludes distributed capital gains.
Past performance is not indicative of future results.

Disclosure of Expenses

Shareholders of this Fund may incur the following charges: (a) expenses
related to transactions, including sales charges, redemption fees and
exchange fees, and (b) operating expenses, including administration
fees, distribution and service fees including 12b-1 fees and other Fund
expenses. The expense example below (which is based on a hypothetical
investment of $1,000 invested on April 1, 2010 and held through
September 30, 2010) is intended to assist shareholders both in calcu-
lating expenses based on an investment in the Fund and in comparing
these expenses with similar costs of investing in other mutual funds.

The table below provides information about actual account values and
actual expenses. In order to estimate the expenses a shareholder paid
during the period covered by this report, shareholders can divide their
account value by $1,000 and then multiply the result by the number
under the heading entitled “Expenses Paid During the Period.”

The table also provides information about hypothetical account values
and hypothetical expenses based on the Fund’s actual expense ratio and
an assumed rate of return of 5% per year before expenses. In order to
assist shareholders in comparing the ongoing expenses of investing in this
Fund and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the table are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as sales charges, redemption fees or exchange fees. Therefore, the
hypothetical example is useful in comparing ongoing expenses only, and
will not help shareholders determine the relative total expenses of owning
different funds. If these transactional expenses were included, shareholder
expenses would have been higher.


		Actual			Hypothetical²
		Ending			Ending
	Beginning	Account Value		Beginning	Account Value
	Account Value	September 30,	Expenses Paid	Account Value	September 30,	Expenses Paid	Annualized
	April 1, 2010	2010	During the Period¹	April 1, 2010	2010	During the Period¹	Expense Ratio
BIF Tax-Exempt Fund	$1,000.00	$1,000.20	$2.06	$1,000.00	$1,023.04	$2.08	0.41%

¹Expenses are equal to the Fund’s annualized expense ratio, multiplied by 183/365 (to reflect the one-half year period shown). Because the Fund is a feeder fund, the
expense table example reflects the expenses of both the feeder fund and the Master LLC in which it invests.
²Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

4 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Statement of Assets and Liabilities


September 30, 2010 (Unaudited)	BIF Tax-Exempt Fund
Assets
Investment at value — Master Tax-Exempt LLC (the “Master LLC”)
(cost — $3,752,541,956)	$ 3,752,541,956
Capital shares sold receivable		2,398,436
Prepaid expenses		231,050
Total assets		3,755,171,442
Liabilities
Contributions payable to the Master LLC		2,397,925
Administration fees payable		645,801
Officer's fees payable		1,302
Capital shares redeemed payable		511
Income dividends payable		32
Other accrued expenses payable		118,414
Total liabilities		3,163,985
Net Assets	$ 3,752,007,457
Net Assets Consist of
Paid-in capital	$ 3,751,847,389
Accumulated net realized gain allocated from the
Master LLC		160,068
Net Assets, $1.00 net asset value per share, 3,751,914,534
shares outstanding, unlimited number of shares authorized,
par value $0.10 per share	$ 3,752,007,457

Statement of Operations


Six Months Ended September 30, 2010 (Unaudited)	BIF Tax-Exempt Fund
Investment Income
Interest	$ 412
Net investment income allocated from the Master LLC:
Interest	11,061,049
Expenses	(4,001,100)
Total income	7,060,361
Expenses
Administration	6,189,254
Distribution and service fees	3,084,838
Transfer agent	645,021
Registration	193,896
Printing	54,422
Professional	39,978
Officer	1,193
Miscellaneous	22,004
Total expenses	10,230,606
Less fees waived and reimbursed by administrator	(1,076,595)
Less distribution fees waived	(3,079,185)
Total expenses after fees waived	6,074,826
Net investment income	985,535
Realized Gain Allocated from the Master LLC
Net realized gain from investments	155,307
Net Increase in Net Assets Resulting from Operations	$ 1,140,842

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010


Statements of Changes in Net Assets	BIF Tax-Exempt Fund
	Six Months
	Ended		Year Ended
	September 30, 2010		March 31,
Increase (Decrease) in Net Assets:	(Unaudited)		2010
Operations
Net investment income	$ 985,535	$ 7,216,462
Net realized gain	155,307		225,748
Net increase in net assets resulting from operations	1,140,842		7,442,210
Dividends and Distributions to Shareholders From
Net investment income	(985,535)		(7,216,462)
Net realized gain	—		(42,259)
Net decrease in net assets resulting from dividends and distributions to shareholders	(985,535)		(7,258,721)
Capital Share Transactions
Net proceeds from sale of shares	10,815,805,277		36,432,105,498
Reinvestment of dividends and distributions	985,535		7,258,721
Cost of shares redeemed	(12,670,457,263)	(41,113,573,115)
Net decrease in net assets derived from capital share transactions	(1,853,666,451)		(4,674,208,896)
Net Assets
Total decrease in net assets	(1,853,511,144)		(4,674,025,407)
Beginning of period	5,605,518,601		10,279,544,008
End of period	$ 3,752,007,457	$ 5,605,518,601

See Notes to Financial Statements.

6 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010


Financial Highlights							BIF Tax-Exempt Fund
	Six Months Ended
	September 30,
	2010			Year Ended March 31,
	(Unaudited)		2010	2009	2008		2007	2006
Per Share Operating Performance
Net asset value, beginning of period	$ 1.00	$ 1.00		$ 1.00	$ 1.00	$ 1.00		$ 1.00
Net investment income	0.0002		0.0008	0.0125	0.0290		0.0302	0.0222
Net realized gain (loss)	—		0.0000	0.0000	0.0002		0.0001	(0.0000)
Net increase from investment operations	0.0002		0.0008	0.0125	0.0292		0.0303	0.0222
Dividends and distributions from:
Net investment income	(0.0002)		(0.0008)	(0.0125)	(0.0290)		(0.0302)	(0.0222)
Net realized gain	—		(0.0000)	—	—		—	—
Total dividends and distributions	(0.0002		(0.0008)	(0.0125)	(0.0290)		(0.0302)	(0.0222)
Net asset value, end of period	$ 1.00	$ 1.00		$ 1.00	$ 1.00	$ 1.00		$ 1.00
Total Investment Return¹
Total investment return	0.02%²		0.08%	1.26%	2.94%		3.05%	2.24%
Ratios to Average Net Assets³
Total expenses	0.57%⁴		0.58%	0.57%	0.55%		0.55%	0.55%
Total expenses after fees waived	0.41%⁴		0.49%	0.57%	0.55%		0.55%	0.55%
Net investment income	0.05%⁴		0.09%	1.24%	2.87%		3.03%	2.21%
Supplemental Data
Net assets, end of period (000)	$ 3,752,007	$ 5,605,519		$ 10,279,544	$ 11,003,605	$ 9,257,629		$ 8,761,108
¹Where applicable, total investment returns include the reinvestment of dividends and distributions.
²Aggregate total investment return.
³Includes the Fund’s share of the Master LLC’s allocated expenses and/or net investment.
⁴Annualized.

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Notes to Financial Statements (Unaudited)

BIF Tax-Exempt Fund

1. Significant Accounting Policies:

BIF Tax-Exempt Fund (formerly CMA Tax-Exempt Fund) (the “Fund”) is
registered under the Investment Company Act of 1940, as amended (the
“1940 Act”), as a no-load, diversified, open-end management invest-
ment company. The Fund is organized as a Massachusetts business
trust. The Fund seeks to achieve its investment objective by investing all
of its assets in Master Tax-Exempt LLC (the “Master LLC”), which has the
same investment objective and strategies as the Fund. The Master LLC is
organized as a Delaware limited liability company. The value of the
Fund's investment in the Master LLC reflects the Fund's proportionate
interest in the net assets of the Master LLC. The percentage of the
Master LLC owned by the Fund at September 30, 2010 was 81%. The
performance of the Fund is directly affected by the performance of the
Master LLC. The financial statements of the Master LLC, including the
Schedule of Investments, are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements. The
Board of Trustees of the Fund and the Board of Directors of the Master
LLC are referred to throughout this report as the “Board of Directors”
or the “Board”. The Fund's financial statements are prepared in conform-
ity with accounting principles generally accepted in the United States
of America ("US GAAP"), which may require management to make
estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from
those estimates.

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

Valuation: The Fund’s policy is to fair value its financial instruments at
market value. The Fund records its investment in the Master LLC at fair
value based on the Fund’s proportionate interest in the net assets of the
Master LLC. Valuation of securities held by the Master LLC, including cat-
egorization of fair value measurements, is discussed in Note 1 of the
Master LLC’s Notes to Financial Statements, which are included else-
where in this report. The Fund seeks to maintain the net asset value per
share at $1.00, although there is no assurance that it will be able to do
so on a continuing basis.

Investment Transactions and Net Investment Income: For financial
reporting purposes, investment transactions in the Master LLC are
accounted for on a trade date basis. The Fund records daily its propor-
tionate share of the Master LLC’s income, expenses and realized gains
and losses. In addition, the Fund accrues its own income and expenses.

Dividends and Distributions: Dividends from net investment income are
declared and reinvested daily. Distributions of realized gains, if any, are
recorded on the ex-dividend date. The amount and timing of dividends
and distributions are determined in accordance with federal income tax
regulations, which may differ from US GAAP.

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

The Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Fund's US federal tax returns remains open for each of the
four years ended March 31, 2010. The statutes of limitations on the
Fund's state and local tax returns may remain open for an additional
year depending upon the jurisdiction. There are no uncertain tax posi-
tions that require recognition of a tax liability.

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

2. Administration Agreement and Other Transactions with
Affiliates:

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

The Fund entered into an Administration Agreement with BlackRock
Advisors, LLC (the “Administrator”), an indirect, wholly owned subsidiary
of BlackRock, to provide administrative services (other than investment
advice and related portfolio activities). For such services, the Fund pays
the Administrator a monthly fee at an annual rate of 0.25% of the aver-
age daily value of the Fund's net assets. The Fund does not pay an
investment advisory fee or investment management fee.

8 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Notes to Financial Statements (concluded)

BIF Tax-Exempt Fund

The Fund has entered into a Distribution Agreement and Distribution and
Shareholder Servicing Plan (the “Distribution Plan”) with BlackRock
Investments, LLC (“BRIL”), an affiliate of BlackRock. Pursuant to the
Distribution Plan and in accordance with Rule 12b-1 under the 1940
Act, the Fund pays BRIL ongoing service and distribution fees. The fees
are accrued daily and paid monthly at the annual rate of 0.125% of the
Fund’s average daily net assets. The ongoing distribution fee compen-
sates BRIL for providing distribution related services to shareholders.

In addition to the contractual agreement described above, the
Administrator and BRIL voluntarily agreed to waive a portion of their
respective administration and distribution fees and /or reimburse
operating expenses to enable the Fund to maintain minimum levels on
daily net investment income. These amounts are shown as fees waived
and reimbursed by administrator and distribution fees waived in the
Statement of Operations. The Administrator and BRIL may discontinue
this waiver or reimbursement at any time.

Certain officers and/or directors of the Fund are officers and/or directors
of BlackRock or its affiliates. The Fund reimburses the Administrator for
compensation paid to the Fund's Chief Compliance Officer.

3. Capital Share Transactions:

The number of shares sold, reinvested and redeemed corresponds to the
net proceeds from the sale of shares, reinvestment of dividends and dis-
tributions and cost of shares redeemed, respectively, since shares are
sold and redeemed at $1.00 per share.

4. Subsequent Events:

Management has evaluated the impact of all subsequent events on the
Fund through the date the financial statements were issued and has
determined that there were no subsequent events requiring adjustment
or additional disclosure in the financial statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Portfolio Summary as of September 30, 2010 Master Tax-Exempt LLC

Portfolio Composition


	Percent of
	Net Assets
Variable Rate Demand Obligations	76%
Fixed Rate Notes	14
Tax-Exempt Commercial Paper	4
Put Bonds	4
Other Assets Less Liabilities	2
Total	100%

10 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments September 30, 2010 (Unaudited)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Alabama — 1.0%
Huntsville IDB, Refunding RB, VRDN, AMT (Federal
Home Loan Bank LOC), 0.43%, 10/07/10 (a)	$ 2,515	$ 2,515,000
Spanish Fort Redevelopment Authority, Macon Trust,
RB, VRDN Certificates, Bank of America, Series
2007-306 (Bank of America NA SBPA), 0.44%,
10/07/10 (a)(b)	15,450	15,450,000
University of Alabama, RB, ROCS, VRDN, Series
II-R-12295 (BHAC Insurance, Citibank NA SBPA),
0.31%, 10/07/10 (a)(b)(c)	28,710	28,710,000
		46,675,000
Alaska — 0.5%
City of Valdez Alaska, Refunding RB, VRDN, Phillips
Project, Series C, 0.42%, 10/07/10 (a)	24,400	24,400,000
Arizona — 1.5%
Arizona Health Facilities Authority, RB, FLOATS, VRDN,
Series 1782 (Morgan Stanley Municipal Funding
SBPA), 0.30%, 10/07/10 (a)(b)	13,495	13,495,000
Maricopa County IDA Arizona, Refunding RB, VRDN,
Villas Solanas Apartments, Series A, AMT (Fannie
Mae), 0.34%, 10/07/10 (a)	6,200	6,200,000
Maricopa County Public Finance Corp. Arizona, RB,
FLOATS, VRDN, Series 1863 (Wells Fargo Bank NA
SBPA), 0.29%, 10/07/10 (a)(b)	5,440	5,440,000
Salt River Pima-Maricopa Indian Community, RB,
VRDN (Bank of America NA LOC)(a):
0.32%, 10/07/10	31,195	31,195,000
0.34%, 10/07/10	15,000	15,000,000
		71,330,000
California — 7.1%
California Community College Financing Authority,
RB, TRAN, Series A, 2.00%, 6/30/11	6,955	7,014,430
California Municipal Finance Authority, RB, PUTTERS,
VRDN, Series 2410, AMT (JPMorgan Chase Bank
LOC), 0.45%, 10/07/10 (a)(b)	2,125	2,125,000
California Rural Home Mortgage Finance Authority
Homebuyers Fund, Refunding RB, VRDN, Draw Down,
Mandatory Put Bonds, AMT, 0.51%, 10/01/10 (a)	49,997	49,996,600
California School Cash Reserve Program Authority, RB:
Senior Series B, 2.00%, 6/01/11	12,100	12,188,131
Series D, 2.00%, 3/01/11	23,200	23,320,304
Series F, 2.00%, 6/01/11	10,200	10,291,380


	Par
Municipal Bonds	(000)	Value
California (concluded)
California Statewide Communities Development
Authority, RB, FLOATS, VRDN, Series 29G, AMT
(Goldman Sachs Special Situations Liquidity
Facility), 0.35%, 11/24/10 (a)(b)	$ 23,700	$ 23,700,000
City of Los Angeles California, GO, TRAN:
2.00%, 3/31/11	11,000	11,079,403
2.00%, 4/21/11	6,700	6,751,892
City of Sacramento California, GO, TRAN, 2.00%,
6/30/11	10,000	10,107,796
County of Los Angeles California, RB, ROCS, VRDN,
Series II-R-13101CE (Citibank NA Liquidity
Facility), 0.32%, 10/07/10 (a)(b)(c)	8,400	8,400,000
County of Riverside California, GO, TRAN:
Series A, 2.00%, 3/31/11	5,000	5,039,100
Series B, 2.00%, 6/30/11	35,000	35,377,475
Downey School Facilities Financing Authority,
Puttable Floating Option Tax-Exempt Receipts,
Refunding RB, FLOATS, VRDN, Series 4066
(Dexia Credit Local LOC, Dexia Credit Local SBPA),
0.49%, 10/07/10 (a)(b)	3,990	3,990,000
Golden State Tobacco Securitization Corp.
California, RB, FLOATS, VRDN, Series 2215
(Morgan Stanley Bank Liquidity Facility), 0.37%,
10/07/10 (a)(b)	22,500	22,500,000
Golden State Tobacco Securitization Corp.
California, Refunding RB, FLOATS, VRDN (a)(b):
Series 2040 (Morgan Stanley Municipal Funding
Guarantee Agreement and Liquidity Facility),
0.37%, 10/07/10	8,000	8,000,000
Series 2954 (Morgan Stanley Bank Liquidity
Facility), 0.37%, 10/07/10	1,344	1,344,500
Los Angeles Unified School District California, GO,
TRAN, Series A, 2.00%, 6/30/11	23,900	24,136,072
San Diego Unified School District California, GO,
TRAN, Series A, 2.00%, 6/30/11	40,000	40,424,978
San Mateo Union High School District California,
GO, ROCS, VRDN, Series II-R-11578PB (AGC
Insurance, PB Capital Corp. SBPA), 0.33%,
10/07/10 (a)(b)(c)	9,475	9,475,000
South Coast Local Education Agencies, RB, Pooled,
TRAN, Series A, 2.00%, 8/09/11	12,500	12,646,934
		327,908,995

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to
the following list:


AGC	Assured Guaranty Corp.	HFA	Housing Finance Agency	PSF-GTD	Permanent School Fund Guaranteed
AGM	Assured Guaranty Municipal Corp.	HRB	Housing Revenue Bonds	PUTTERS	Puttable Tax-Exempt Receipts
AMT	Alternative Minimum Tax (subject to)	IDA	Industrial Development Authority	Q-SBLF	Qualified School Bond Loan Fund
BAN	Bond Anticipation Notes	IDB	Industrial Development Board	RAN	Revenue Anticipation Notes
BHAC	Berkshire Hathaway Assurance Corp.	IDRB	Industrial Development Revenue Bonds	RB	Revenue Bonds
COP	Certificates of Participation	ISD	Independent School District	ROCS	Reset Option Certificates
DRIVERS	Derivative Inverse Tax-Exempt Receipts	LIFERS	Long Inverse Floating Exempt Receipts	S/F	Single-Family
EDA	Economic Development Authority	LOC	Letter of Credit	SAN	State Aid Notes
EDC	Economic Development Corp.	M/F	Multi-Family	SBPA	Stand-by Bond Purchase Agreement
FLOATS	Floating Rate Securities	MERLOTS	Municipal Exempt Receipts Liquidity	SPEARS	Short-Puttable Exempt Adjustable Receipts
GO	General Obligation Bonds		Optional Tenders	TAN	Tax Anticipation Notes
HDA	Housing Development Authority	MSTR	Municipal Securities Trust Receipts	TECP	Tax-Exempt Commercial Paper
				TRAN	Tax Revenue Anticipation Notes
See Notes to Financial Statements.				VRDN	Variable Rate Demand Notes

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Colorado — 2.1%
City & County of Denver Colorado, COP, Refunding,
VRDN, Series A3 (JPMorgan Chase Bank SBPA),
0.29%, 10/01/10 (a)	$ 5,850	$ 5,850,000
City of Colorado Springs Colorado, Refunding RB,
VRDN, Subordinate Lien, Series A (Dexia Credit
Local SBPA), 0.35%, 10/07/10 (a)	34,875	34,875,000
Colorado Educational & Cultural Facilities Authority,
RB, VRDN, Nature Conservatory, Series A-TE (Bank
of America NA SBPA), 0.34%, 10/07/10 (a)	8,200	8,200,000
Colorado Housing & Finance Authority, RB, VRDN,
Class I (a):
M/F, Series C-4 (Federal Home Loan Bank
SBPA), 0.31%, 10/07/10	4,520	4,520,000
Series B-2, AMT (Dexia Credit Local SBPA),
0.36%, 10/07/10	25,000	25,000,000
Colorado School of Mines, Refunding RB, VRDN,
Series A (Dexia Credit Local LOC), 0.32%,
10/07/10 (a)	7,900	7,900,000
County of Pitkin Colorado, Refunding RB, VRDN,
Aspen Skiing Co. Project, Series B, AMT (JPMorgan
Chase Bank LOC), 0.33%, 10/01/10 (a)	4,500	4,500,000
Fiddlers Business Improvement District Colorado,
GO, Refunding, VRDN (KeyBank NA LOC),
0.36%, 10/07/10 (a)	4,200	4,200,000
		95,045,000
Connecticut — 0.3%
Connecticut State Health & Educational Facility
Authority, Austin Trust, RB, VRDN Certificates, Bank
of America, Series 2008-352 (Bank of America NA
LOC, Bank of America NA SBPA), 0.37%,
10/07/10 (a)(b)	4,700	4,700,000
Connecticut State Health & Educational Facility
Authority, RB, VRDN, Hotchkiss School, Series A
(Northern Trust Co. SBPA), 0.27%, 10/07/10 (a)	4,000	4,000,000
Town of Easton Connecticut, GO, BAN, 1.00%, 7/08/11	3,500	3,515,547
		12,215,547
District of Columbia — 1.1%
District of Columbia, Deutsche Bank SPEARS/LIFERS
Trust, GO, SPEARS, VRDN, Series DB-463 (AGM
Insurance, Deutsche Bank AG SBPA), 0.31%,
10/07/10 (a)(b)	8,393	8,393,000
District of Columbia, GO, FLOATS, VRDN, Series 1920
(Wells Fargo Bank NA LOC, Wells Fargo Bank NA
SBPA), 0.29%, 10/07/10 (a)(b)	15,985	15,985,000
District of Columbia, RB, VRDN, American University
(Bank of America NA LOC), 0.32%, 10/07/10 (a)	7,400	7,400,000
Washington Convention Center Authority, Refunding
RB, FLOATS, VRDN (a)(b):
Series 1730 (BHAC Insurance, Morgan Stanley
Bank Liquidity Facility), 0.31%, 10/07/10	6,665	6,665,000
Series 1731 (BHAC Insurance, Morgan Stanley
Bank Liquidity Facility), 0.31%, 10/07/10	6,665	6,665,000
Series 1736 (BHAC Insurance), 0.31%, 10/07/10	7,830	7,830,000
		52,938,000
Florida — 5.3%
Brevard County Housing Finance Authority, RB, VRDN,
Timber Trace Apartments Project, AMT (Citibank NA
LOC), 0.33%, 10/07/10 (a)	10,000	10,000,000


	Par
Municipal Bonds	(000)	Value
Florida (concluded)
County of St. John's Florida, Deutsche Bank
SPEARS/LIFERS Trust, RB, SPEARS, VRDN, Series
DB-486 (Deutsche Bank AG SBPA), 0.31%,
10/07/10 (a)(b)	$ 8,912	$ 8,912,000
County of St. John's Florida, RB, ROCS, VRDN,
Series II-R-755PB (PB Capital Corp. SBPA),
0.34%, 10/07/10 (a)(b)	18,145	18,145,000
Florida Housing Finance Corp., RB, VRDN, Savannah
Springs Apartments, Series N, AMT (Citibank NA
LOC), 0.36%, 10/07/10 (a)	6,800	6,800,000
Florida Hurricane Catastrophe Fund Finance Corp.,
RB, ROCS, VRDN, Series II-R-11549 (Citibank NA
SBPA), 0.31%, 10/07/10 (a)(b)	4,905	4,905,000
Florida State Board of Education, GO, ROCS, VRDN,
Series II-R-12288 (Citibank NA SBPA), 0.30%,
10/07/10 (a)(b)(c)	8,000	8,000,000
Fort Pierce Redevelopment Agency, Eclipse Funding
Trust, Tax Allocation Bonds, VRDN, Series
2006-0130, Solar Eclipse (US Bank NA LOC),
0.29%, 10/07/10 (a)(b)	3,905	3,905,000
Hillsborough County Housing Finance Authority,
HRB, VRDN, Brandon, Series A, AMT (Fannie Mae),
0.33%, 10/07/10 (a)	5,630	5,630,000
Jacksonville Economic Development Commission,
RB, VRDN, Lee & Cates Glass Inc. Project, AMT
(Wells Fargo Bank NA LOC), 0.47%, 10/07/10 (a)	7,600	7,600,000
Jacksonville Electric Authority Florida, Refunding
RB, VRDN (a):
Series 3-B-2 (Bank of America NA SBPA),
0.28%, 10/07/10	6,085	6,085,000
Series 3-B-3 (Bank of America NA SBPA),
0.28%, 10/07/10	8,455	8,455,000
Sub-Series A-2 (JPMorgan Chase & Co. SBPA),
0.30%, 10/07/10	6,845	6,845,000
Jacksonville Electric Authority Florida, TECP :
0.33%, 10/20/10	50,215	50,215,000
0.33%, 10/20/10	8,785	8,785,000
Jacksonville Port Authority, RB, VRDN, Mitsui OSK
Lines Ltd., AMT (Sumitomo Mitsui Banking LOC),
0.31%, 10/07/10 (a)	415	415,000
Manatee County Housing Finance Authority, HRB,
VRDN, Village at Cortez Apartments, Series A, AMT
(Fannie Mae), 0.33%, 10/07/10 (a)	11,500	11,500,000
Orlando & Orange County Expressway Authority, RB,
VRDN, Eagle Tax-Exempt Trust, Series 2007-0145,
Class A (BHAC Insurance, Citibank NA SBPA),
0.31%, 10/07/10 (a)(b)	11,300	11,300,000
Orlando & Orange County Expressway Authority,
Refunding RB, VRDN, Series C-4 (AGM Insurance,
Dexia Credit Local SBPA), 0.30%, 10/07/10 (a)	24,000	24,000,000
Orlando Utilities Commission, RB, ROCS, VRDN,
Series II-R-11818PB (PB Capital Corp. SBPA),
0.34%, 10/07/10 (a)(b)(c)	26,120	26,120,000
Palm Beach County Educational Facilities Authority,
Refunding RB, VRDN, Educational Facilities, Atlantic
University Inc. (Bank of America NA LOC),
0.32%, 10/07/10 (a)	9,510	9,510,000
University of South Florida Research Foundation Inc.,
RB, VRDN, University Technology Center Research
(Bank of America NA LOC), 0.50%, 10/07/10 (a)	7,500	7,500,000
		244,627,000

See Notes to Financial Statements.

12 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Georgia — 1.6%
Fulton County Development Authority, Refunding RB,
VRDN, Siemens Energy Inc. Project, 0.40%,
10/07/10 (a)	$ 7,200	$ 7,200,000
Main Street Natural Gas Inc., RB, VRDN, Series A
(Royal Bank of Canada SBPA), 0.31%,
10/07/10 (a)	20,700	20,700,000
Monroe County Development Authority, Refunding
RB, Georgia Power Co. Plant Scherer Project,
Mandatory Put Bonds, 0.80%, 1/07/11 (d)	6,000	6,000,000
Municipal Electric Authority of Georgia, Refunding
RB, VRDN, Project No. 1, Sub-Series B (Dexia
Credit Local LOC), 0.35%, 10/07/10 (a)	10,000	10,000,000
State of Georgia, GO, ROCS, VRDN, Series
II-R-11536PB (PB Capital Corp. SBPA),
0.33%, 10/07/10 (a)(b)	26,065	26,065,000
Whitfield County Development Authority, RB, VRDN,
Aladdin Manufacturing Corp. Project, AMT
(Wachovia Bank NA LOC), 0.49%, 10/07/10 (a)	3,100	3,100,000
		73,065,000
Idaho — 0.3%
State of Idaho, GO, TAN, 2.00%, 6/30/11	15,350	15,531,782
Illinois — 8.3%
BB&T Municipal Trust, RB, FLOATS, VRDN, Series
5001 (Rabobank International LOC), 0.44%,
10/07/10 (a)(b)(c)	13,411	13,410,509
Chicago Transit Authority, COP, ROCS, VRDN, Series
II-R-11786 (AGC Insurance, Citibank NA SBPA),
0.40%, 10/07/10 (a)(b)(c)	8,210	8,210,000
City of Chicago Illinois, RB, VRDN, AMT (a):
ROCS, Series II-R-239 (AGM Insurance, Citibank
NA SBPA), 0.37%, 10/07/10 (b)	3,700	3,700,000
Second Lien, Series B (Societe Generale LOC),
0.34%, 10/07/10	17,549	17,549,000
City of Chicago Illinois, Deutsche Bank SPEARS/
LIFERS Trust, SPEARS, RB, VRDN (a)(b):
Series DB-502 (AGM Insurance, Deutsche
Bank AG SBPA), 0.31%, 10/07/10	41,055	41,055,000
Series DBE-534, 0.31%, 10/07/10	2,235	2,235,000
Illinois Finance Authority, RB, VRDN (a):
Revolving Fund Pooled, Series D (Bank One
Illinois NA LOC), 0.27%, 10/07/10	16,050	16,050,000
University of Chicago Medical Center, Series D-1
(Bank of America NA LOC), 0.26%, 10/01/10	7,700	7,700,000
Illinois Finance Authority, Refunding RB, VRDN, Eagle
Tax-Exempt Trust, Series 2006-0118, Class A
(Citibank NA SBPA), 0.30%, 10/07/10 (a)(b)	3,150	3,150,000
Illinois State Toll Highway Authority, RB, VRDN, Senior
Priority, Series A-1 (Dexia Credit Local SBPA),
0.31%, 10/07/10 (a)	45,700	45,700,000
Illinois State Toll Highway Authority, Refunding RB,
VRDN (a):
Senior Priority, Series A-2 (AGM Insurance, Dexia
Credit Local SBPA), 0.31%, 10/07/10	1,430	1,430,000
Series B (AGM Insurance, Landesbank Hessen-
Thuringen SBPA), 0.30%, 10/07/10	12,235	12,235,000
State of Illinois, GO, VRDN, Series B (Depfa Bank
Plc SBPA), 2.75%, 10/07/10 (a)	198,800	198,800,000
University of Illinois, Refunding RB, VRDN, Eagle
Tax-Exempt Trust, Series 2006-0124, Class A
(Citibank NA SBPA), 0.31%, 10/07/10 (a)(b)	10,000	10,000,000
		381,224,509


	Par
Municipal Bonds	(000)	Value
Indiana — 3.3%
City of Michigan City Indiana, RB, VRDN, Palatek
Project, AMT (Comerica Bank LOC), 0.45%,
10/07/10 (a)	$ 4,700	$ 4,700,000
City of Portage Indiana, RB, VRDN, Breckenridge
Apartments Project, AMT (LaSalle National Bank
LOC), 0.36%, 10/07/10 (a)	4,650	4,650,000
Hartford City Indiana, RB, VRDN, Petoskey Plastics
Inc., AMT (Comerica Bank LOC), 0.45%,
10/07/10 (a)	5,200	5,200,000
Indiana Development Finance Authority, RB, VRDN (a):
Educational Facilities, Industrial Museum of Art
(Bank One NA LOC), 0.27%, 10/07/10	43,000	43,000,000
PSI Energy Inc. Projects, Series A, AMT, 0.55%,
10/07/10	17,550	17,550,000
Indiana Finance Authority, RB, VRDN, Lease
Appropriation, Series A-1 (JPMorgan Chase Bank
SBPA), 0.30%, 10/01/10 (a)	40,000	40,000,000
Indiana Finance Authority, Refunding RB:
Ascension Health, Series E6, Mandatory Put
Bonds, 0.39%, 3/15/11 (d)	6,000	6,000,000
VRDN, Duke Energy Indiana Project, Series A-1,
AMT (Bank of America NA LOC), 0.33%,
10/07/10 (a)	6,000	6,000,000
Indianapolis Local Public Improvement Bond Bank,
Refunding RB, ROCS, VRDN, Series II-R-11779
(AGC Insurance, Citibank NA SBPA), 0.32%,
10/07/10 (a)(b)(c)	24,825	24,825,000
		151,925,000
Iowa — 0.5%
City of Clear Lake Iowa, RB, VRDN, Joe Corbi's Pizza
Project, AMT (Manufacturers & Traders LOC),
0.45%, 10/07/10 (a)	3,295	3,295,000
Iowa Higher Education Loan Authority, Refunding RB,
VRDN, Private College Facility, Loras College Project
(Lasalle Bank NA LOC), 0.27%, 10/01/10 (a)	11,960	11,960,000
State of Iowa, Barclays Capital Municipal Trust
Receipts, RB, FLOATS, VRDN, Series 13B-C (Barclays
Bank Plc SBPA), 0.31%, 10/07/10 (a)(b)(c)	6,200	6,200,000
		21,455,000
Kansas — 0.3%
Counties of Sedgwick & Shawnee Kansas, JP Morgan
Chase PUTTERS/DRIVERS Trust, Refunding RB,
PUTTERS, VRDN, Series 3206, AMT (Ginnie Mae
Insurance, JPMorgan Chase & Co. SBPA), 0.40%,
10/07/10 (a)(b)(c)	5,680	5,680,000
Counties of Sedgwick & Shawnee Kansas, RB, FLOATS,
VRDN, Series 2480, AMT (Ginnie Mae Insurance,
Morgan Stanley Bank Liquidity Facility), 0.34%,
10/07/10 (a)(b)	7,285	7,285,000
		12,965,000
Kentucky — 0.5%
Campbell & Kenton Counties Sanitation District No. 1
Kentucky, RB, MSTR, VRDN, Series SGA 130 (AGM
Insurance, Societe Generale SBPA), 0.33%,
10/07/10 (a)(b)	11,000	11,000,000
County of Boyd Kentucky, RB, VRDN, Air Products &
Chemicals Project, AMT, 0.53%, 10/07/10 (a)	3,775	3,775,000
Reset Optional Certificates Trust II-R, Refunding RB,
ROCS, VRDN, Series II-R-662C (Citibank NA LOC,
Citibank NA SBPA), 0.40%, 10/07/10 (a)(b)	9,125	9,125,000
		23,900,000

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Louisiana — 1.0%
Louisiana Local Government Environmental Facilities
& Community Development Authority, RB, VRDN (a):
BASF Corp. Project, AMT, 0.44%, 10/07/10	$ 4,000	$ 4,000,000
Go To The Show, Series A (Federal Home Loan
Bank LOC), 0.28%, 10/07/10	5,305	5,305,000
Honeywell International Inc. Project, AMT,
0.50%, 10/07/10	6,000	6,000,000
Louisiana Local Government Environmental Facilities
& Community Development Authority, Refunding
RB, VRDN, BASF Corp. Project, Series B, 0.41%,
10/07/10 (a)	7,500	7,500,000
Louisiana Public Facilities Authority, RB, VRDN, Air
Products & Chemicals Project, AMT, 0.50%,
10/07/10 (a)	2,850	2,850,000
Louisiana State Municipal Natural Gas Purchasing
& District Authority, RB, PUTTERS, VRDN, Series
1411Q (JPMorgan Chase & Co. LOC), 0.32%,
10/07/10 (a)(b)	9,616	9,616,000
Parish of Ascension Louisiana, RB, VRDN, BASF Corp.
Project, AMT, 0.44%, 10/07/10 (a)	10,100	10,100,000
		45,371,000
Maine — 0.1%
Maine Health & Higher Educational Facilities Authority,
Eclipse Funding Trust, RB, VRDN, Series 2007-0104,
Solar Eclipse (US Bank NA LOC), 0.29%,
10/07/10 (a)(b)	3,175	3,175,000
Maine State Housing Authority, RB, VRDN, Series H
(KBC Bank NV SBPA), 0.30%, 10/01/10 (a)	1,185	1,185,000
		4,360,000
Maryland — 0.9%
County of Baltimore Maryland, RB, VRDN, Paths at
Loveton (Manufacturers & Traders LOC), 0.35%,
10/07/10 (a)	4,270	4,270,000
Maryland Community Development Administration,
Clipper Tax-Exempt Certificate Trust, RB, VRDN,
Series 2009-47, AMT (State Street Bank & Trust
Co. SBPA), 0.45%, 10/07/10 (a)(b)(c)	2,535	2,535,000
Maryland Community Development Administration,
Refunding RB, FLOATS, VRDN, Series 2997, AMT
(Morgan Stanley Bank Liquidity Facility), 0.34%,
10/07/10 (a)(b)(c)	8,475	8,475,000
Maryland EDC, RB, VRDN (a):
Bakery de France Facility, AMT (Manufacturers
& Traders LOC), 0.60%, 10/07/10	9,765	9,765,000
Garrett Community College Facility
(Manufacturers & Traders LOC), 0.30%, 10/07/10	6,905	6,905,000
Linemark Printing Project, AMT (Manufacturers
& Traders LOC), 0.50%, 10/07/10	3,630	3,630,000
Pharmaceutics International Inc., Series A, AMT
(AllFirst Bank LOC), 0.45%, 10/07/10	4,180	4,180,000
		39,760,000
Massachusetts — 3.4%
Commonwealth of Massachusetts, Refunding RB,
FLOATS, VRDN (Dexia Credit Local LOC, Dexia Credit
Local SBPA) (a)(b):
Series PT-3058, 0.50%, 10/07/10	27,200	27,200,000
Series PT-3511, 0.50%, 10/07/10	10,510	10,510,000


	Par
Municipal Bonds	(000)	Value
Massachusetts (concluded)
Massachusetts Bay Transportation Authority,
Refunding RB, VRDN, Senior Series A,
0.39%, 4/28/11 (a)	$ 3,500	$ 3,500,000
Massachusetts Development Finance Agency,
Macon Trust, RB, VRDN Certificates, Bank of
America, Series 2007-344 (Bank of America NA
LOC), 0.44%, 10/07/10 (a)(b)	55,758	55,758,000
Massachusetts Health & Educational Facilities
Authority, RB, VRDN (a)(b):
Macon Trust, Certificates, Bank of America,
Series 2007-310 (Bank of America NA LOC),
0.37%, 10/07/10	7,510	7,510,000
ROCS, Series II-R-11577PB (PB Capital Corp.
SBPA), 0.33%, 10/07/10	31,670	31,670,000
Massachusetts State Turnpike Authority, Clipper
Tax-Exempt Certificate Trust, RB, VRDN, Series
2009-74 (State Street Bank & Trust Co. SBPA),
0.30%, 10/07/10 (a)(b)	13,160	13,160,000
Massachusetts Water Resources Authority, Refunding
RB, VRDN, Eagle Tax-Exempt Trust, Series
2006-0054, Class A (Citibank NA SBPA),
0.30%, 10/07/10 (a)(b)	7,495	7,495,000
		156,803,000
Michigan — 3.6%
City of Detroit Michigan, RB, ROCS, VRDN, Series
II-R-719PB (AGC Insurance, PB Capital Corp.
SBPA), 0.34%, 10/07/10 (a)(b)	12,410	12,410,000
Detroit City School District, GO, FLOATS, VRDN, Series
DC8032 (AGM Insurance, Dexia Credit Local LOC),
0.43%, 10/01/10 (a)(b)	10,000	10,000,000
Holt Public Schools Michigan, GO, Refunding, VRDN
(Q-SBLF Insurance, Landesbank Hessen-Thuringen
SBPA), 0.32%, 10/07/10 (a)	6,965	6,965,000
Michigan Finance Authority, RB, SAN:
Series D-1, 2.00%, 8/19/11	4,230	4,274,555
Series D-2 (JPMorgan Chase Bank LOC),
2.00%, 8/22/11	11,400	11,562,428
Michigan Higher Education Student Loan Authority,
RBC Municipal Products Inc. Trust, Refunding RB,
FLOATS, VRDN, Series L-24, AMT (Royal Bank of
Canada LOC), 0.35%, 10/07/10 (a)(b)	32,045	32,045,000
Michigan State HDA, Refunding RB, VRDN, Series A,
AMT (JPMorgan Chase & Co. SBPA), 0.31%,
10/01/10 (a)	35,000	35,000,000
Michigan State Hospital Finance Authority, RB,
VRDN, Ascension Health Senior Credit, 0.39%
due 4/28/11 (a)	7,700	7,700,000
Reset Optional Certificates Trust II-R, Refunding
RB, ROCS, VRDN, Series II-R-665PB (BHAC
Insurance, PB Capital Corp. SBPA), 0.34%,
10/07/10 (a)(b)	20,630	20,630,000
Wayne County Airport Authority, Refunding RB,
VRDN, Detroit Metropolitan, Series C1, AMT
(Wachovia Bank NA LOC), 0.33%, 10/07/10 (a)	23,990	23,990,000
		164,576,983

See Notes to Financial Statements.

14 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Minnesota — 0.8%
Minneapolis & St. Paul Housing & Redevelopment
Authority, Refunding RB, VRDN, Allina Health
System, Series B-2 (JPMorgan Chase Bank LOC),
0.30%, 10/01/10 (a)	$ 5,600	$ 5,600,000
Minnesota School District Capital Equipment
Borrowing Program, COP, Aid Anticipation
Certificates Indebtedness, Series B,
2.00%, 9/01/11	20,450	20,759,486
State of Minnesota, GO, ROCS, VRDN, Series
II-R-11538PB (PB Capital Corp. SBPA),
0.33%, 10/07/10 (a)(b)	10,435	10,435,000
		36,794,486
Mississippi — 0.2%
Mississippi Business Finance Corp., RB, VRDN,
Series A, Renaissance (Federal Home Loan Bank
LOC), 0.29%, 10/07/10 (a)	7,200	7,200,000
Missouri — 1.8%
City of North Kansas City Missouri, Refunding RB,
VRDN, North Kansas City Hospital (Bank of
America NA LOC), 0.31%, 10/01/10 (a)	9,645	9,645,000
Kansas City IDA Missouri, RB, VRDN, Kansas City
Downtown Redevelopment, Series B (JPMorgan
Chase Bank LOC), 0.27%, 10/07/10 (a)	11,690	11,690,000
Missouri Joint Municipal Electric Utility Commission,
RB, ROCS, VRDN, Series II-R-620PB (BHAC
Insurance, PB Capital Corp. SBPA), 0.34%,
10/07/10 (a)(b)	12,340	12,340,000
Missouri State Health & Educational Facilities
Authority, RB, VRDN, BJC Health System, Series B
(US Bank NA SBPA), 0.30%, 10/01/10 (a)	40,000	40,000,000
Missouri State Health & Educational Facilities
Authority, Refunding RB, Ascension Health Senior
Credit, Series C-1, 0.48%, 5/04/11 (d)	4,245	4,245,000
Palmyra IDA, RB, VRDN, BASF Corp. Project, AMT,
0.44%, 10/07/10 (a)	6,000	6,000,000
		83,920,000
Nebraska — 0.9%
City of Lincoln Nebraska, RB, FLOATS, VRDN, Series
2900 (Morgan Stanley Bank Liquidity Facility),
0.32%, 10/07/10 (a)(b)	16,000	16,000,000
Public Power Generation Agency, RB, ROCS, VRDN,
Series II-R-11019PB (BHAC Insurance, PB
Capital Corp. SBPA), 0.34%, 10/07/10 (a)(b)	26,015	26,015,000
		42,015,000
Nevada — 0.6%
County of Clark Nevada, RB:
System, Junior Subordinate Lien Notes,
Series E-1, 2.50%, 6/01/11	7,335	7,425,987
VRDN, ROCS, Series II-R-11825 (AGC Insurance,
Citibank NA SBPA), 0.32%, 10/07/10 (a)(b)(c)	2,500	2,500,000
VRDN, ROCS, Series II-R-11827 (Citibank NA
SBPA), 0.38%, 10/07/10 (a)(b)(c)	5,000	5,000,000
Truckee Meadows Water Authority, Refunding RB,
FLOATS, VRDN, Series 51TP (AGM Insurance, Wells
Fargo Bank NA SBPA), 0.31%, 10/07/10 (a)(b)	11,790	11,790,000
		26,715,987


	Par
Municipal Bonds	(000)	Value
New Hampshire — 0.7%
New Hampshire Health & Education Facilities
Authority, RB, VRDN (a)(b):
Eclipse Funding Trust, Series 2007-0018, Solar
Eclipse (US Bank NA LOC), 0.29%, 10/07/10	$ 10,385	$ 10,385,000
ROCS, Series II-R-783PB (BHAC Insurance, PB
Capital Corp. SBPA), 0.34%, 10/07/10	20,125	20,125,000
		30,510,000
New Jersey — 6.3%
Borough of Butler New Jersey, GO, BAN,
1.25%, 8/26/11	7,011	7,052,875
Borough of Hopatcong New Jersey, GO, BAN,
1.25%, 8/05/11	10,576	10,616,827
Borough of Palisades Park New Jersey, GO, BAN,
1.25%, 4/21/11	1,600	1,604,238
Borough of Upper Saddle River New Jersey, GO,
Refunding, BAN, 1.25%, 2/25/11	6,091	6,110,976
New Jersey EDA, RB, VRDN, Facilities Construction,
Sub-Series R-3 (Bank of Nova Scotia LOC, Lloyds
TSB Bank Plc LOC), 0.23%, 10/01/10 (a)	18,800	18,800,000
New Jersey EDA, Refunding RB, FLOATS, VRDN (Dexia
Credit Local LOC, Dexia Credit Local SBPA) (a)(b):
Series PT-2805, 0.49%, 10/07/10	18,600	18,600,000
Series PT-3824, 0.49%, 10/07/10	13,920	13,920,000
New Jersey EDA, TECP (Dexia Credit Local SBPA),
0.33%, 10/04/10	24,500	24,500,000
New Jersey State Housing & Mortgage Finance
Agency, Refunding RB, VRDN, S/F Housing,
Series O, AMT (Dexia Credit Local SBPA),
0.41%, 10/07/10 (a)	20,000	20,000,000
New Jersey State Turnpike Authority, RB, VRDN,
Series C-2 (AGM Insurance, Dexia Credit Local
SBPA), 0.35%, 10/07/10 (a)	7,600	7,600,000
New Jersey State Turnpike Authority, Refunding RB,
FLOATS, VRDN, Series PT-2493 (Dexia Credit
Local LOC, Dexia Credit Local SBPA),
0.49%, 10/07/10 (a)(b)	13,920	13,920,000
New Jersey Transportation Trust Fund Authority,
Deutsche Bank SPEARS/LIFERS Trust, RB, SPEARS,
VRDN, Series DB-447 (AGM), 0.31%,
10/07/10 (a)(b)	4,010	4,010,000
State of New Jersey, JP Morgan Chase PUTTERS/
DRIVERS Trust, RB, PUTTERS, VRDN (JPMorgan
Chase & Co. Liquidity Facility) (a)(b)(c):
Series 3808, 0.30%, 10/01/10	20,000	20,000,000
Series 3811, 0.30%, 6/23/11	50,000	50,000,000
Tobacco Settlement Financing Corp. New Jersey,
Refunding RB, FLOATS, VRDN, Series 2959
(Morgan Stanley Bank Liquidity Facility),
0.37%, 10/07/10 (a)(b)(c)	11,150	11,150,000
Township of Jackson New Jersey, GO, TAN,
1.50%, 2/17/11	9,500	9,527,363
Township of Livingston New Jersey, GO, BAN,
1.25%, 2/11/11	9,400	9,424,894
Township of Montclair New Jersey, GO, Refunding,
1.50%, 3/10/11	10,800	10,849,744
Township of Readington New Jersey, GO, BAN,
1.00%, 2/03/11	23,100	23,145,214
Village of Ridgewood New Jersey, GO, BAN,
1.50%, 6/24/11	11,191	11,268,279
		292,100,410

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
New Mexico — 0.2%
City of Rio Rancho New Mexico, Eclipse Funding
Trust, RB, VRDN, Series 2007-0019, Solar Eclipse
(US Bank NA LOC), 0.29%, 10/07/10 (a)(b)	$ 10,000	$ 10,000,000
New York — 7.4%
City of New Rochelle New York, GO, Refunding,
BAN, 1.50%, 3/11/11	3,339	3,353,728
City of New York New York, GO, VRDN (a):
Sub-Series L-4 (US Bank NA LOC),
0.26%, 10/01/10	3,995	3,995,000
Sub-Series L-6 (Wells Fargo Bank NA SBPA),
0.23%, 10/01/10	300	300,000
Metropolitan Transportation Authority, RB, RAN,
2.00%, 12/31/10	20,000	20,081,027
Metropolitan Transportation Authority, Refunding RB,
VRDN (AGM Insurance, Dexia Credit Local SBPA) (a):
Series A, 0.33%, 10/07/10	30,000	30,000,000
Series B, 0.37%, 10/07/10	15,000	15,000,000
New York City Housing Development Corp., RB, VRDN (a):
Beekman Tower, Series A (RBS Citizens NA LOC),
0.39%, 10/07/10	24,300	24,300,000
Elliott Chelsea Development, Series A (Citibank
NA LOC), 0.30%, 10/07/10	3,000	3,000,000
Series H-2-B, AMT (Bank of America NA SBPA),
0.31%, 10/01/10	3,300	3,300,000
Series J-1, Mandatory Put Bonds, 0.48%, 9/15/11	9,450	9,450,000
New York City Housing Development Corp., Refunding
RB, VRDN (a):
M/F, The Crest, Series A (Landesbank Hessen-
Thuringen LOC), 0.31%, 10/07/10	6,700	6,700,000
Series I-2, Mandatory Put Bonds, AMT, 0.53%,
5/13/11	6,950	6,950,000
New York City Industrial Development Agency,
Refunding RB, VRDN, Touro College Project (JP
Morgan Chase Bank LOC), 0.25%, 10/07/10 (a)	3,800	3,800,000
New York City Municipal Water Finance Authority,
Refunding RB, VRDN, Eagle Tax-Exempt Trust, Series
2009-0047, Class A (Citibank NA SBPA), 0.30%,
10/07/10 (a)(b)(c)	7,500	7,500,000
New York City Transitional Finance Authority, RB, VRDN (a):
Future Tax Secured, Sub-Series C3 (Dexia Credit
Local SBPA), 0.34%, 10/07/10	13,545	13,545,000
New York City Recovery, Series 3, Sub-Series 3E
(Landesbank Baden-Wurttemberg SBPA),
0.31%, 10/01/10	3,100	3,100,000
Sub-Series 2B (Dexia Credit Local SBPA),
0.34%, 10/07/10	12,315	12,315,000
New York Liberty Development Corp., RB, VRDN,
World Trade Center Project, Series A, Mandatory
Put Bonds, 0.50%, 1/18/11 (a)	78,000	78,000,000
New York Mortgage Agency, RB, VRDN, Homeowner
Mortgage, Series 125, AMT (Dexia Credit Local
SBPA), 0.40%, 10/07/10 (a)	3,000	3,000,000
New York State HFA, RB, VRDN, Series A (JPMorgan
Chase Bank LOC), 0.25%, 10/07/10 (a)	7,600	7,600,000
Port Authority of New York & New Jersey, JP Morgan
Chase PUTTERS/DRIVERS Trust, RB, PUTTERS,
VRDN, Series 3192, AMT (JPMorgan Chase & Co.
SBPA), 0.39%, 10/07/10 (a)(b)(c)	25,325	25,325,000


		Par
Municipal Bonds		(000)	Value
New York (concluded)
Port Authority of New York & New Jersey, Refunding
RB, VRDN, Versatile Structure Obligation, Series 4,
AMT (Landesbank Hessen-Thuringen SBPA),
0.28%, 10/01/10 (a)	$ 200		$ 200,000
Ramapo Housing Authority New York, RB, VRDN,
Fountainview College Road (Manufacturers &
Traders LOC), 0.40%, 10/07/10 (a)		13,720	13,720,000
Triborough Bridge & Tunnel Authority, Refunding RB,
VRDN, General, Sub-Series B-2 (Dexia Credit
Local SBPA), 0.30%, 10/07/10 (a)		46,100	46,100,000
			340,634,755
North Carolina — 3.8%
Charlotte Housing Authority North Carolina, RB, VRDN
(Wachovia Bank NA LOC) (a):
Oak Park Project, 0.31%, 10/07/10		7,500	7,500,000
Stonehaven East Project, 0.31%, 10/07/10		5,950	5,950,000
City of Charlotte North Carolina, Refunding RB, VRDN,
Charlotte Douglas, Series D (Bank of America NA
LOC), 0.28%, 10/07/10 (a)		1,260	1,260,000
City of Raleigh North Carolina, COP, VRDN, Downtown,
Series B (RBC Bank USA SBPA), 0.31%, 10/07/10 (a)		7,900	7,900,000
City of Raleigh North Carolina, Refunding RB, VRDN,
0.40%, 4/28/11 (a)		3,375	3,375,000
County of Mecklenburg North Carolina, GO, VRDN,
Series B (Landesbank Hessen-Thuringen SBPA),
0.28%, 10/07/10 (a)		600	600,000
County of Pender North Carolina, GO, BAN, Water,
1.25%, 7/06/11 (e)		8,200	8,242,476
County of Wake North Carolina, GO, VRDN (a):
Public Improvement, Series B (Lloyds TSB Bank
Plc SBPA), 0.28%, 10/07/10		1,000	1,000,000
Series A (RBC Bank USA SBPA), 0.34%, 10/07/10		45,350	45,350,000
Martin County Industrial Facilities & Pollution
Control Financing Authority North Carolina, IDRB,
VRDN, Penco Products Project, AMT (KeyBank NA
LOC), 0.58%, 10/07/10 (a)		9,000	9,000,000
Mecklenburg County North Carolina, COP, VRDN
(Branch Banking & Trust SBPA), 0.30%, 10/07/10 (a)		2,500	2,500,000
Mecklenburg County North Carolina, GO, Refunding,
7 Month Windows, Series D, 0.40%, 4/28/11 (d)		5,900	5,900,000
North Carolina, BB&T Municipal Trust, RB, FLOATS,
VRDN (Branch Banking & Trust LOC)(a)(b):
Series 1008, 0.33%, 10/07/10		400	400,000
Series 1009, 0.36%, 10/07/10		1,890	1,890,000
Series 1011, 0.36%, 10/07/10		1,180	1,180,000
North Carolina Capital Facilities Finance Agency,
RB, VRDN, Aquarium Society Project (Bank of
America NA LOC), 0.32%, 10/07/10 (a)		21,435	21,435,000
North Carolina HFA, RB, VRDN, AMT (a)(b)(c):
MERLOTS, Series B12 (Wells Fargo Bank NA
SBPA), 0.34%, 10/07/10		6,120	6,120,000
ROCS, Series II-R-175 (Citibank NA SBPA),
0.36%, 10/07/10		1,800	1,800,000
North Carolina Medical Care Commission, RB,
VRDN, Moses Cone Health System, Series A (Bank
of America NA SBPA), 0.30%, 10/07/10 (a)		6,625	6,625,000
North Carolina State Education Assistance Authority,
Refunding RB, VRDN, Student Loan, Series A-2, AMT
(Royal Bank of Canada LOC), 0.33%, 10/07/10 (a)		19,900	19,900,000
Reset Optional Certificates Trust II-R, RB, ROCS, VRDN,
Series II-R-645 (Citibank NA SBPA), 0.30%,
10/07/10 (a)		6,400	6,400,000

See Notes to Financial Statements.

16 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
North Carolina (concluded)
Town of Ahoskie North Carolina, GO, BAN,
Wastewater, 1.00%, 11/17/10	$ 2,550	$ 2,551,673
University of North Carolina at Chapel Hill,
Refunding RB, VRDN, Series B (Landesbank
Hessen-Thuringen SBPA), 0.27%, 10/01/10 (a)	9,340	9,340,000
		176,219,149
Ohio — 0.7%
City of Avon Ohio, GO, BAN, 1.25%, 7/21/11	3,000	3,016,094
City of Delaware Ohio, GO, BAN, Various Purpose,
1.25%, 4/27/11	3,900	3,914,645
City of Marysville Ohio, GO, Wastewater Treatment,
1.25%, 6/01/11	6,250	6,270,696
City of Shaker Heights Ohio, GO, BAN, Various
Purpose Improvement, 1.50%, 5/06/11	2,625	2,638,232
City of Willoughby Ohio, GO, BAN, Various Purpose
Improvement, 1.00%, 10/08/10	6,950	6,950,696
County of Cuyahoga Ohio, RB, VRDN, Cleveland Clinic,
Sub-Series B3 (Bank of America NA SBPA),
0.29%, 10/01/10 (a)	6,200	6,200,000
County of Licking Ohio, GO, BAN, Various Purpose,
1.25%, 6/16/11	2,800	2,810,838
County of Wood Ohio, RB, VRDN, GHT Property
Management LLC Project, AMT (KeyBank NA LOC),
0.56%, 10/07/10 (a)	985	985,000
		32,786,201
Oklahoma — 0.1%
Oklahoma Development Finance Authority, RB,
Conoco Project, Series B, AMT, 0.34%, 10/07/10 (a)	2,500	2,500,000
Pennsylvania — 2.2%
Allegheny County Airport Authority Pennsylvania,
Puttable Floating Option Tax-Exempt Receipts,
Refunding RB, FLOATS, VRDN, Series 3965, AMT
(Dexia Credit Local LOC, Dexia Credit Local SBPA),
0.57%, 10/07/10 (a)(b)	3,990	3,990,000
Allegheny County Hospital Development Authority,
RBC Municipal Products Inc. Trust, RB, FLOATS,
VRDN, Series E-16 (Royal Bank of Canada LOC),
0.30%, 10/07/10 (a)(b)(c)	12,800	12,800,000
Butler County IDA Pennsylvania, Refunding RB,
VRDN, Concordia Lutheran, Series A (Bank of
America NA LOC), 0.30%, 10/07/10 (a)	195	195,000
Commonwealth of Pennsylvania, Clipper Tax-Exempt
Certificate Trust, RB, VRDN, Series 2009-58 (State
Street Bank & Trust Co. SBPA), 0.33%,
10/07/10 (a)(b)(c)	12,500	12,500,000
County of Lehigh Pennsylvania, Refunding RB,
VRDN, Lehigh Valley Health Network, Series B
(AGC Insurance, Wells Fargo Bank NA SBPA),
0.28%, 10/01/10 (a)	40,000	40,000,000
Pennsylvania HFA, Refunding RB, VRDN, Series 99C,
AMT (Dexia Credit Local SBPA), 0.33%, 10/07/10 (a)	5,100	5,100,000
Southcentral General Authority Pennsylvania,
Refunding RB, VRDN, Wellspan Health Obligor
Group, Series C (M&T Bank LOC), 0.30%,
10/07/10 (a)	5,800	5,800,000
Venango IDA (Dexia Credit Local SBPA), TECP:
0.47%, 10/04/10	538	538,000
0.47%, 10/05/10	12,048	12,048,000
0.47%, 10/06/10	4,460	4,460,000
0.47%, 10/07/10	2,756	2,756,000
		100,187,000


	Par
Municipal Bonds	(000)	Value
Puerto Rico — 1.8%
Commonwealth of Puerto Rico, Austin Trust,
Refunding RB, VRDN Certificates, Bank of America,
Series 2008-355 (Bank of America NA LOC,
Bank of America NA SBPA), 0.43%,
10/07/10 (a)(b)	$ 3,100	$ 3,100,000
Puerto Rico Electric Power Authority, Puttable
Floating Option Tax-Exempt Receipts, Refunding
RB, FLOATS, VRDN, Series 4147 (AGM Insurance,
Dexia Credit Local LOC, Dexia Credit Local SBPA),
0.49%, 10/07/10 (a)(b)	33,330	33,330,000
Puerto Rico Highway & Transportation Authority,
Refunding RB, FLOATS, VRDN, Series PT-3189
(Dexia Credit Local LOC, Dexia Credit Local SBPA),
0.49%, 10/07/10 (a)(b)	44,980	44,980,000
		81,410,000
Rhode Island — 1.4%
Narragansett Bay Commission, RB, ROCS, VRDN,
Series II-R-780PB (BHAC Insurance, PB Capital
Corp. SBPA), 0.34%, 10/07/10 (a)(b)	17,465	17,465,000
State of Rhode Island, GO, TAN, Series R-1,
2.00%, 6/30/11	48,250	48,788,148
		66,253,148
South Carolina — 1.5%
City of Spartanburg South Carolina, RB, ROCS,
VRDN, Series II-R-11020PB (AGM Insurance, PB
Capital Corp. SBPA), 0.34%, 10/07/10 (a)(b)	13,410	13,410,000
Greenville Hospital System Board, Refunding RB,
VRDN, Series C (Bank of America NA LOC),
0.33%, 10/07/10 (a)	4,500	4,500,000
South Carolina Jobs, EDA, Macon Trust, RB, VRDN
Certificates, Bank of America, Series 2007-303
(Bank of America NA LOC, Bank of America NA
SBPA), 0.37%, 10/07/10 (a)(b)	7,480	7,480,000
South Carolina Jobs, EDA, Refunding RB, VRDN,
UMA Refinance Project (Wells Fargo Bank NA
LOC), 0.28%, 10/01/10 (a)	4,785	4,785,000
South Carolina State Public Service Authority, RB,
VRDN, Eagle Tax-Exempt Trust, Series 2006-0007,
Class A (Citibank NA SBPA), 0.31%,
10/07/10 (a)(b)	11,500	11,500,000
South Carolina Transportation Infrastructure Bank,
Refunding RB, VRDN (a):
Series B1 (Bank of America NA LOC), 0.28%,
10/07/10	5,280	5,280,000
Series B2 (Branch Banking & Trust LOC), 0.26%,
10/07/10	4,765	4,765,000
Spartanburg County Regional Health Services
District, Refunding RB, VRDN, Series C (AGC
Insurance, Bank of America NA SBPA),
0.29%, 10/07/10 (a)	18,370	18,370,000
		70,090,000
Tennessee — 2.7%
Clarksville Public Building Authority Tennessee, RB,
VRDN, Pooled Financing, Tennessee Municipal
Bond Fund (Bank of America NA LOC),
0.34%, 10/07/10 (a)	40,600	40,600,000

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Tennessee (concluded)
County of Shelby Tennessee, GO, VRDN, Public
Improvement, School, Series B (Landesbank
Hessen-Thuringen SBPA), 0.35%, 10/07/10 (a)	$ 55,970	$ 55,970,000
Metropolitan Government of Nashville & Davidson
County Health & Educational Facilities Board,
Refunding RB, FLOATS, VRDN (Morgan Stanley
Bank Liquidity Facility) (a)(b)(c):
Series 3012, 0.31%, 10/07/10	5,305	5,305,000
Series 3013, 0.30%, 10/07/10	10,000	10,000,000
Metropolitan Government of Nashville & Davidson
County IDB, RB, VRDN, Nashville Symphony Hall
Project (Bank of America NA LOC), 0.34%,
10/07/10 (a)	12,678	12,678,000
Montgomery County Public Building Authority
Tennessee, RB, VRDN, Tennessee County Loan
Pool (Bank of America NA LOC), 0.34%,
10/07/10 (a)	1,530	1,530,000
		126,083,000
Texas — 17.3%
Brazos Harbor Industrial Development Corp., RB,
VRDN, AMT (a):
BASF Corp. Project, 0.44%, 10/07/10	75,000	75,000,000
ConocoPhillips Co. Project, 0.34%, 10/07/10	10,500	10,500,000
Brazos River Harbor Navigation District, RB, VRDN,
AMT, BASF Corp. (a):
Multi-Mode, 0.44%, 10/07/10	15,800	15,800,000
Project, 0.44%, 10/07/10	18,400	18,400,000
City of Austin Texas, Refunding RB, VRDN, AMT
(AGM Insurance, Dexia Credit Local SBPA) (a):
Sub-Series 3, 0.35%, 10/07/10	49,925	49,925,000
Sub-Series 4, 0.35%, 10/07/10	52,595	52,595,000
City of Brownsville Texas, Deutsche Bank SPEARS/
LIFERS Trust, RB, SPEARS, VRDN, Series DBE-533
(Deutsche Bank AG LOC, Deutsche Bank AG
SBPA), 0.31%, 10/07/10 (a)(b)	1,750	1,750,000
City of Houston Texas, GO, TRAN, 2.00%, 6/30/11	19,300	19,528,560
City of Houston Texas, Puttable Floating Option
Tax-Exempt Receipts, Refunding RB, FLOATS,
VRDN, Series 4159 (AGM Insurance, Dexia Credit
Local LOC, Dexia Credit Local SBPA), 0.50%,
10/07/10 (a)(b)	10,920	10,920,000
City of Midland Texas, GO, ROCS, VRDN, Series
II-R-810PB (PB Capital Corp. SBPA), 0.34%,
10/07/10 (a)(b)	10,690	10,690,000
City of San Antonio Texas, Refunding RB, VRDN,
Subordinate Lien (Wells Fargo Bank NA LOC),
0.28%, 10/07/10 (a)	20,420	20,420,000
County of Fort Bend Texas, GO, MSTR, VRDN, Series
SGB 46, Class A (Societe Generale SBPA),
0.30%, 10/07/10 (a)(b)	4,500	4,500,000
County of Harris Texas, Clipper Tax-Exempt
Certificate Trust, GO, VRDN, Series 2009-73
(State Street Bank & Trust Co. SBPA), 0.33%,
10/07/10 (a)(b)(c)	10,000	10,000,000
County of Harris Texas, GO, ROCS, VRDN, Series
II-R-10360 (Citibank NA SBPA), 0.30%,
10/07/10 (a)(b)(c)	7,175	7,175,000
County of Harris Texas, RB, MSTR, VRDN, Series
SGC 31, Class A (Societe Generale LOC),
0.27%, 10/07/10 (a)(b)	11,280	11,280,000


	Par
Municipal Bonds	(000)	Value
Texas (concluded)
County of Harris Texas, Refunding RB, Toll Road,
Senior Lien, Series A-2, Mandatory Put Bonds,
0.35%, 8/15/11 (a)	$ 21,865	$ 22,179,345
Cypress-Fairbanks ISD, GO, FLOATS, VRDN, Series
86TP (Wells Fargo Bank NA SBPA), 0.31%,
10/07/10 (a)(b)	2,555	2,555,000
Denton ISD Texas, GO, VRDN, Building, Series
2005-A (Bank of America NA SBPA), 0.31%,
10/07/10 (a)	2,500	2,500,000
Galena Park ISD Texas, GO, Refunding, FLOATS, VRDN,
Series SG-153 (PSF-GTD Insurance, Societe
Generale SBPA), 0.30%, 10/07/10 (a)(b)	12,250	12,250,000
Gulf Coast Waste Disposal Authority, RB, VRDN, AMT (a):
Air Products Project, 0.50%, 10/07/10	2,200	2,200,000
American Acryl LP Project (Credit Industriel et
Commercial LOC), 0.40%, 10/07/10	19,000	19,000,000
Harris County Health Facilities Development Corp.,
RB, VRDN, Baylor College of Medicine, Series B
(JPMorgan Chase Bank LOC), 0.30%, 10/01/10 (a)	35,010	35,010,000
Katy ISD Texas, GO, VRDN, School Building (PSF-GTD
Insurance, Bank of America NA SBPA), 0.30%,
10/07/10 (a)	5,500	5,500,000
Mesquite Industrial Development Corp. Texas, IDRB,
VRDN, Morrison Products, AMT (KeyBank NA LOC),
0.45%, 10/07/10 (a)	800	800,000
North Texas Municipal Water District, RB, ROCS,
VRDN, Series II-R-593PB (PB Capital Corp. SBPA),
0.34%, 10/07/10 (a)(b)	8,410	8,410,000
North Texas Tollway Authority, Deutsche Bank SPEARS/
LIFERS Trust, Refunding RB, SPEARS, VRDN, Series
DB-626 (AGC Insurance, Deutsche Bank AG SBPA),
0.31%, 10/07/10 (a)(b)	11,487	11,487,000
Port Arthur Navigation District Texas, RB, VRDN,
Air Products & Chemicals Project, AMT, 0.53%,
10/07/10 (a)	10,000	10,000,000
Port of Corpus Christi Authority of Nueces County
Texas, Refunding RB, VRDN, Flint Hills Resource,
Series A, AMT, 0.34%, 10/07/10 (a)	22,650	22,650,000
Port of Port Arthur Navigation District, Refunding RB,
VRDN, Motiva Enterprises Project, AMT, 0.34%,
10/07/10 (a)	17,335	17,335,000
San Antonio ISD Texas, GO, Refunding, VRDN, Eagle
Tax-Exempt Trust, Series 2009-0037, Class A
(PSF-GTD Insurance, Citibank NA SBPA), 0.31%,
10/07/10 (a)(b)(c)	5,000	5,000,000
Sheldon ISD Texas, GO, PUTTERS, VRDN, Series 2009
(PSF-GTD Insurance, JPMorgan Chase & Co. SBPA),
0.33%, 10/07/10 (a)(b)	5,180	5,180,000
Socorro ISD Texas, GO, ROCS, VRDN, Series
II-R-11540PB (PSF-GTD Insurance, PB Capital
Corp. SBPA), 0.34%, 10/07/10 (a)(b)(c)	12,660	12,660,000
State of Texas, RB, TRAN, 2.00%, 8/31/11	228,050	231,429,669
Tarrant County Cultural Education Facilities Finance
Corp., RB, FLOATS, VRDN (Morgan Stanley Bank
Liquidity Facility) (a)(b)(c):
Series 2973, 0.30%, 10/07/10	36,000	36,000,000
Series 2974, 0.30%, 10/07/10	12,000	12,000,000
Wells Fargo Stage Trust, Refunding RB, FLOATS, VRDN,
Series 12C (Wells Fargo Bank NA Liquidity Facility),
0.40%, 3/01/11 (a)(b)(c)	3,390	3,390,000
		796,019,574

See Notes to Financial Statements.

18 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (continued)

Master Tax-Exempt LLC
(Percentages shown are based on Net Assets)


	Par
Municipal Bonds	(000)	Value
Utah — 0.1%
State of Utah, GO, FLOATS, VRDN, Series 2987
(Morgan Stanley Bank Liquidity Facility),
0.30%, 10/07/10 (a)(b)(c)	$ 6,000	$ 6,000,000
Virginia — 2.2%
Arlington County IDA, Refunding HRB, VRDN,
Woodbury Park Project, Series A (Freddie Mac),
0.30%, 10/07/10 (a)	4,600	4,600,000
City of Richmond Virginia, RB, ROCS, VRDN, Series
II-R-10410 (AGM Insurance, Citibank NA SBPA),
0.27%, 10/07/10 (a)(b)(c)	2,655	2,655,000
County of Henrico Virginia, RB, ROCS, VRDN, Series
II-R-753PB (PB Capital Corp. SBPA), 0.33%,
10/07/10 (a)(b)	4,685	4,685,000
Fairfax County IDA, RB, VRDN (a):
Health Care, Inova Health, 0.42%, 4/28/11	3,000	3,000,000
Inova Health System Project, Series A-2
(JPMorgan Chase Bank SBPA), 0.30%, 10/01/10	13,795	13,795,000
Inova Health System Project, Series C-1,
0.30%, 10/01/10	8,825	8,825,000
Roanoke Economic Development Authority, RB,
Carilion Health System, Series A-2 (AGM Insurance,
Wells Fargo Bank NA SBPA), 0.28%, 10/01/10 (a)	9,000	9,000,000
Virginia College Building Authority, RB, VRDN (Wells
Fargo Bank NA SBPA), 21St Century College (a):
Series B, 0.28%, 10/01/10	16,430	16,430,000
Series C, 0.28%, 10/01/10	13,025	13,025,000
Virginia Commonwealth Transportation Board, Clipper
Tax-Exempt Certificate Trust, RB, VRDN, Series
2009-38 (State Street Bank & Trust Co. SBPA),
0.30%, 10/07/10 (a)(b)	13,060	13,060,000
Virginia HDA, RB, MERLOTS, VRDN, Series B19, AMT
(Wells Fargo Bank NA SBPA), 0.34%,
10/07/10 (a)(b)	3,000	3,000,000
Virginia HDA, Refunding RB, MERLOTS, VRDN,
Series C42, AMT (Wells Fargo Bank NA SBPA),
0.34%, 10/07/10 (a)(b)	2,880	2,880,000
Virginia Public Building Authority, RB, VRDN, Series D
(Dexia Credit Local SBPA), 0.35%, 10/07/10 (a)	1,000	1,000,000
Virginia Resources Authority, Refunding RB, FLOATS,
VRDN, Series 1860 (Wells Fargo Bank NA SBPA),
0.29%, 10/07/10 (a)(b)	4,715	4,715,000
Winchester IDA Virginia, Refunding RB, VRDN,
Westminster-Canterbury, Series B (Branch
Banking & Trust LOC), 0.30%, 10/07/10 (a)	1,200	1,200,000
		101,870,000
Washington — 1.8%
Chelan County Public Utility District No. 1, RB,
FLOATS, VRDN, Series 2969, AMT (Morgan Stanley
Bank Liquidity Facility), 0.40%, 10/07/10 (a)(b)(c)	6,770	6,770,000
City of Seattle Washington, RB, FLOATS, VRDN, Series
2170 (AGM Insurance, Wells Fargo Bank NA SBPA),
0.29%, 10/07/10 (a)(b)	2,530	2,530,000
County of King Washington (Bayerische Landesbank
SBPA), TECP :
0.32%, 10/01/10	20,000	20,000,000
0.33%, 11/08/10	31,300	31,300,000
Pierce County EDC Washington, RB, VRDN, PNW
Commercial LLC Project, AMT (KeyBank NA LOC),
0.56%, 10/07/10 (a)	1,995	1,995,000


	Par
Municipal Bonds	(000)	Value
Washington (concluded)
State of Washington, GO, ROCS, VRDN, Series
II-R-11308 (Citibank NA SBPA), 0.30%,
10/07/10 (a)(b)(c)	$ 2,960	$ 2,960,000
Washington State University, RB, ROCS, VRDN,
Series II-R-595PB (PB Capital Corp. SBPA),
0.34%, 10/07/10 (a)(b)	16,120	16,120,000
		81,675,000
Wisconsin — 0.9%
State of Wisconsin, TECP, 0.40% due 12/08/10	38,742	38,742,000
Village of Kohler Wisconsin, RB, VRDN, Kohler Co.
Project, AMT (Wachovia Bank NA LOC),
0.41%, 10/07/10 (a)	4,000	4,000,000
		42,742,000
Wyoming — 0.2%
County of Lincoln Wyoming, RB, PacifiCorp Project
(Wells Fargo Bank NA LOC), 0.28%, 10/07/10 (a)	11,250	11,250,000
*Total Investments (Cost — $4,531,052,526) — 98.3%**		4,531,052,526
Other Assets Less Liabilities — 1.7%		77,996,101
Net Assets — 100.0%		$ 4,609,048,627

* Cost for federal income tax purposes.
(a) Variable rate security. Rate shown is as of report date and maturity shown is the
date the principal owed can be recovered through demand.
(b) These securities are short-term floating rate certificates issued by tender option
bond trusts and are secured by the underlying municipal bond securities.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to quali-
fied institutional investors.
(d) Variable rate security. Rate shown is as of report date.
(e) When-issued security. Unsettled when-issued transactions were as follows:


		Unrealized
		Appreciation
Counterparty	Value	(Depreciation)
Robert C. Baird & Co.	$ 8,242,476	—

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Schedule of Investments (concluded)

Master Tax-Exempt LLC

• Fair Value Measurements — Various inputs are used in determining the fair value
of investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted
prices for similar assets or liabilities in markets that are active, quoted prices
for identical or similar assets or liabilities in markets that are not active,
inputs other than quoted prices that are observable for the assets or liabili-
ties (such as interest rates, yield curves, volatilities, prepayment speeds, loss
severities, credit risks and default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Master LLC's own assumptions used in determining the fair value of
investments)
The inputs or methodologies used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities. For infor-
mation about the Master LLC's policy regarding valuation of investments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following table summarizes the inputs used as of September 30, 2010 in
determining the fair valuation of the Master LLC's investments:


Valuation Inputs	Level 1	Level 2¹	Level 3	Total
Assets:
Investments in Securities:
Municipal Bonds¹—		$4,531,052,526	—	$4,531,052,526

¹See above Schedule of Investments for values in each state or
political subdivision.

See Notes to Financial Statements.

20 BIF TAX-EXEMPT FUND SEPTEMBER 30, 2010

Statement of Assets and Liabilities


September 30, 2010 (Unaudited)	Master Tax-Exempt LLC
Assets
Investments at value — unaffiliated
(cost — $4,531,052,526)	$ 4,531,052,526
Cash	215,402
Investments sold receivable	79,400,713
Interest receivable	5,023,499
Contributions receivable from investors	2,397,898
Prepaid expenses	210,194
Total assets	4,618,300,232
Liabilities
Investments purchased payable	8,242,476
Investment advisory fees payable	582,605
Other affiliates payable	28,428
Directors' fees payable	2,590
Other accrued expenses payable	395,506
Total liabilities	9,251,605
Net Assets	$ 4,609,048,627
Net Assets Consist of
Investors’ capital	$ 4,609,048,627

Statement of Operations


Six Months Ended September 30, 2010 (Unaudited)	Master Tax-Exempt LLC
Investment Income
Interest	$ 13,050,902
Expenses
Investment advisory	4,090,233
Accounting services	251,050
Directors	91,649
Custodian	85,623
Professional	43,365
Printing	26,445
Miscellaneous	133,167
Total expenses	4,721,532
Net investment income	8,329,370
Realized Gain
Realized gain from investments	185,365
Net Increase in Net Assets Resulting from Operations	$ 8,514,735

See Notes to Financial Statements.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010


Statements of Changes in Net Assets					Master Tax-Exempt LLC
					Six Months
					Ended	Year Ended
				September 30, 2010 March 31,
Increase (Decrease) in Net Assets:					(Unaudited)	2010
Operations
Net investment income				$ 8,329,370		$ 39,096,247
Net realized gain					185,365	252,491
Net increase in net assets resulting from operations					8,514,735	39,348,738
Capital Transactions
Proceeds from contributions				15,488,833,171		47,760,181,661
Value of withdrawals				(17,383,820,151)		(52,667,487,942)
Net decrease in net assets derived from capital transactions				(1,894,986,980)		(4,907,306,281)
Net Assets
Total decrease in net assets				(1,886,472,245)		(4,867,957,543)
Beginning of period					6,495,520,872	11,363,478,415
End of period				$ 4,609,048,627		$ 6,495,520,872
Financial Highlights					Master Tax-Exempt LLC
	Six Months Ended
	September 30,
	2010		Year Ended March 31,
	(Unaudited)	2010	2009	2008	2007	2006
Total Investment Return
Total investment return	0.15%¹	0.42%	1.68%	3.34%	3.45%	2.64%
Ratios to Average Net Assets
Total expenses	0.16%²	0.15%	0.15%	0.15%	0.15%	0.15%
Net investment income	0.29%²	0.43%	1.67%	3.28%	3.44%	2.61%
Supplemental Data
Net assets, end of period (000)	$ 4,609,049	$ 6,495,521	$11,363,478	$12,113,046	$10,143,538	$ 9,524,737
¹Aggregate total investment return.
²Annualized.

See Notes to Financial Statements.

22 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Notes to Financial Statements (Unaudited)

Master Tax-Exempt LLC

1. Organization and Significant Accounting Policies:

Master Tax-Exempt LLC (the “Master LLC”) is registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), and
is organized as a Delaware limited liability company. The Master LLC’s
Limited Liability Company Agreement permits the Board of Directors of
the Master LLC (the “Board”) to issue non-transferable interests in the
Master LLC, subject to certain limitations. The Master LLC’s financial
statements are prepared in conformity with accounting principles gener-
ally accepted in the United States of America, which may require man-
agement to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results
could differ from those estimates.

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

Valuation: The Master LLC's policy is to fair value its financial instru-
ments at market value. The Master LLC's investments are valued under
the amortized cost method which approximates current market value
in accordance with Rule 2a-7 of the 1940 Act. Under this method,
securities are valued at cost when purchased and thereafter, a constant
proportionate accretion and amortization of any discount or premium is
recorded until the maturity of the security.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Interest income, including amortization of premium and accretion of
discount on debt securities, is recognized on the accrual basis.

Income Taxes: The Master LLC is classified as a partnership for federal
income tax purposes. As such, each investor in the Master LLC is treated
as owner of its proportionate share of the net assets, income, expenses
and realized and unrealized gains and losses of the Master LLC. There-
fore, no federal income tax provision is required. It is intended that the
Master LLC's assets will be managed so an investor in the Master LLC
can satisfy the requirements of Subchapter M of the Internal Revenue
Code of 1986, as amended.

The Master LLC files US federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of
limitations on the Master LLC's US federal tax returns remains open for
each of the four years ended March 31, 2010. The statutes of limitations
on the Master LLC's state and local tax returns may remain open for an
additional year depending upon the jurisdiction. There are no uncertain
tax positions that require recognition of a tax liability.

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

2. Investment Advisory Agreement and Other Transactions
with Affiliates:

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

The Master LLC entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Manager”), the Master LLC's investment
advisor, an indirect, wholly owned subsidiary of BlackRock, to provide
investment advisory and administration services. The Manager is respon-
sible for the management of the Master LLC's portfolio and provides the
necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Master LLC. For such services, the
Master LLC pays the Manager a monthly fee at the following annual
rates of the Master LLC's average daily net assets:


Not exceeding $500 million	0.250%
In excess of $500 million, but not exceeding $1 billion	0.175%
In excess of $1 billion	0.125%

The Manager entered into a sub-advisory agreement with BlackRock
Investment Management, LLC (“BIM”), an affiliate of the Manager.
The Manager pays BIM for services it provides, a monthly fee that is
a percentage of the investment advisory fees paid by the Master LLC to
the Manager.

For the six months ended September 30, 2010, the Master LLC reim-
bursed the Manager $69,428 for certain accounting services, which is
included in accounting services in the Statement of Operations.

Certain officers and/or directors of the Master LLC are officers and/or
directors of BlackRock or its affiliates.

3. Market and Credit Risk:

In the normal course of business, the Master LLC invests in securities
and enters into transactions where risks exist due to fluctuations in the
market (market risk) or failure of the issuer of a security to meet all its
obligations (issuer credit risk). The value of securities held by the Master

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Notes to Financial Statements (concluded)

Master Tax-Exempt LLC

LLC may decline in response to certain events, including those directly
involving the issuers whose securities are owned by the Master LLC; con-
ditions affecting the general economy; overall market changes; local,
regional or global political, social or economic instability; and currency
and interest rate and price fluctuations. Similar to issuer credit risk, the
Master LLC may be exposed to counterparty credit risk, or the risk that
an entity with which the Master LLC has unsettled or open transactions
may fail to or be unable to perform on its commitments. The Master LLC
manages counterparty credit risk by entering into transactions only with
counterparties that it believes have the financial resources to honor their
obligations and by monitoring the financial stability of those counterpar-
ties. Financial assets, which potentially expose the Master LLC to market,
issuer and counterparty credit risks, consist principally of financial
instruments and receivables due from counterparties. The extent of the
Master LLC's exposure to market, issuer and counterparty credit risks
with respect to these financial assets is generally approximated by their
value recorded in the Master LLC's Statement of Assets and Liabilities,
less any collateral held by the Master LLC.

4. Subsequent Events:

Management has evaluated the impact of all subsequent events on the
Master LLC through the date the financial statements were issued and
has determined that there were no subsequent events requiring adjust-
ment or additional disclosure in the financial statements.

24 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

The Board of Directors of Master Tax-Exempt LLC (the “Master LLC”)
met on April 20, 2010 and May 18–19, 2010 to consider the approval
of the Master LLC’s investment advisory agreement (the “Advisory
Agreement”) with BlackRock Advisors, LLC (the “Manager”), the Master
LLC’s investment advisor. The Board of Directors of the Master LLC
also considered the approval of the sub-advisory agreement (the “Sub-
Advisory Agreement”) between the Manager and BlackRock Investment
Management, LLC (the “Sub-Advisor”), with respect to the Master LLC.
BIF Tax-Exempt Fund (the “Fund”) is a “feeder” fund that invests all of its
investable assets in the Master LLC. Accordingly, the Board of Trustees
of the Fund also considered the approval of the Advisory Agreement
and the Sub-Advisory Agreement with respect to the Master LLC. The
Manager and the Sub-Advisor are referred to herein as “BlackRock.”
The Advisory Agreement and the Sub-Advisory Agreement are referred
to herein as the “Agreements.” For simplicity, the Board of Directors of
the Master LLC and the Board of Trustees of the Fund are referred to
herein collectively as the “Board,” and the members are referred to as
“Board Members.”

Activities and Composition of the Board

The Board consists of thirteen individuals, eleven of whom are not
“interested persons” of the Master LLC or the Fund as defined in the
Investment Company Act of 1940, as amended (the “1940 Act”) (the
“Independent Board Members”). The Board Members are responsible
for the oversight of the operations of the Master LLC or the Fund, as
pertinent, and perform the various duties imposed on the directors
of investment companies by the 1940 Act. The Independent Board
Members have retained independent legal counsel to assist them
in connection with their duties. The Co-Chairs of the Board are each
Independent Board Members. The Board has established five standing
committees: an Audit Committee, a Governance and Nominating
Committee, a Compliance Committee, a Performance Oversight and
Contract Committee and an Executive Committee, each of which is
composed of Independent Board Members (except for the Executive
Committee, which also has one interested Board Member) and is
chaired by Independent Board Members.

The Agreements

Pursuant to the 1940 Act, the Board is required to consider the cont-
inuation of the Agreements on an annual basis. In connection with this
process, the Board assessed, among other things, the nature, scope and
quality of the services provided to the Master LLC and the Fund by the
personnel of BlackRock and its affiliates, including investment manage-
ment, administrative and shareholder services, oversight of fund
accounting and custody, marketing services and assistance in meeting
applicable legal and regulatory requirements.

From time to time throughout the year, the Board, acting directly
and through its committees, considers at each of its meetings factors

that are relevant to its annual consideration of the renewal of the
Agreements, including the services and support provided by BlackRock
to the Master LLC, the Fund and their shareholders. Among the matters
the Board considered were: (a) investment performance for one-, three-
and five-year periods, as applicable, against peer funds, and applicable
benchmarks, if any, as well as senior management’s and portfolio man-
agers’ analysis of the reasons for any over performance or underperfor-
mance against its peers and/or benchmark, as applicable; (b) fees,
including advisory, administration, if applicable, and other amounts paid
to BlackRock and its affiliates by the Master LLC and/or the Fund for
services, such as transfer agency, marketing and distribution, call center
and fund accounting; (c) Master LLC’s and/or the Fund’s operating
expenses; (d) the resources devoted to and compliance reports relating
to the Master LLC’s and the Fund’s investment objective, policies and
restrictions, (e) the Master LLC’s and the Fund’s compliance with its
respective Code of Ethics and compliance policies and procedures; (f)
the nature, cost and character of non-investment management services
provided by BlackRock and its affiliates; (g) BlackRock’s and other serv-
ice providers’ internal controls; (h) BlackRock’s implementation of the
proxy voting policies approved by the Board; (i) execution quality of port-
folio transactions; (j) BlackRock’s implementation of the Master LLC’s
and/or the Fund’s valuation and liquidity procedures; (k) an analysis
of contractual and actual management fees for products with similar
investment objectives across the open-end fund and institutional
account product channels, as applicable; and (l) periodic updates
on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 20, 2010 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in a process with BlackRock to periodically review
the nature and scope of the information provided to better assist its
deliberations. The materials provided in connection with the April meet-
ing included (a) information independently compiled and prepared by
Lipper, Inc. (“Lipper”) on fees and expenses of the Master LLC and the
Fund, as applicable, and the investment performance of the Fund as
compared with a peer group of funds as determined by Lipper (collec-
tively, “Peers”); (b) information on the profitability of the Agreements to
BlackRock and a discussion of fall-out benefits to BlackRock and its
affiliates and significant shareholders; (c) a general analysis provided by
BlackRock concerning investment advisory fees charged to other clients,
such as institutional clients, under similar investment mandates, as well
as the performance of such other clients, as applicable; (d) the impact
of economies of scale; (e) a summary of aggregate amounts paid by the
Master LLC and/or the Fund to BlackRock; (f) sales and redemption
data regarding the Fund’s shares; and (g) if applicable, a comparison
of management fees to similar BlackRock open-end funds, as classified
by Lipper.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

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

At an in-person meeting held on April 20, 2010, the Board reviewed
materials relating to its consideration of the Agreements. As a result of
the discussions that occurred during the April 20, 2010 meeting, the
Board presented BlackRock with questions and requests for additional
information and BlackRock responded to these requests with additional
written information in advance of the May 18–19, 2010 Board meeting.

At an in-person meeting held on May 18–19, 2010, the Board of the
Master LLC, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between the
Manager and the Master LLC and the Sub-Advisory Agreement between
the Manager and the Sub-Advisor with respect to the Master LLC, each
for a one-year term ending June 30, 2011. The Board of the Fund,
including the Independent Board Members, also considered the cont-
inuation of the Agreements and found the Agreements to be satisfactory.
In approving the continuation of the Agreements, the Board considered:

(a) the nature, extent and quality of the services provided by BlackRock;
(b) the investment performance of the Master LLC, the Fund and

BlackRock; (c) the advisory fee and the cost of the services and
profits to be realized by BlackRock and its affiliates from their relat-
ionship with the Master LLC and the Fund; (d) economies of scale;
and (e) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the
approval process, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valua-
tion and pricing of portfolio holdings of the Master LLC, direct and indi-
rect benefits to BlackRock and its affiliates and significant shareholders
from their relationship with the Master LLC and the Fund and advice
from independent legal counsel with respect to the review process and
materials submitted for the Board’s review. The Board noted the willing-
ness of BlackRock personnel to engage in open, candid discussions
with the Board. The Board did not identify any particular information as
controlling, and each Board Member may have attributed different
weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock:
The Board, including the Independent Board Members, reviewed the
nature, extent and quality of services provided by BlackRock, including
the investment advisory services and the resulting performance of the
Fund. Throughout the year, the Board compared the Fund’s performance
to the performance of a comparable group of mutual funds, and the
performance of a relevant benchmark, if any. The Board met with
BlackRock’s senior management personnel responsible for investment
operations, including the senior investment officers. The Board also
reviewed the materials provided by the Master LLC’s portfolio manage-
ment team discussing Master LLC performance and the Master LLC’s
investment objective, strategies and outlook.

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

In addition to advisory services, the Board considered the quality of
the administrative and non-investment advisory services provided to the
Master LLC and the Fund. BlackRock and its affiliates and significant
shareholders provide the Master LLC and the Fund with certain adminis-
trative, transfer agency, shareholder and other services (in addition to
any such services provided to the Master LLC and the Fund by third par-
ties) and officers and other personnel as are necessary for the opera-
tions of the Master LLC and the Fund. In addition to investment advisory
services, BlackRock and its affiliates provide the Master LLC and the
Fund with other services, including (i) preparing disclosure documents,
such as the prospectus, the statement of additional information and
periodic shareholder reports; (ii) assisting with daily accounting and
pricing; (iii) overseeing and coordinating the activities of other service
providers; (iv) organizing Board meetings and preparing the materials
for such Board meetings; (v) providing legal and compliance support;
and (vi) performing other administrative functions necessary for the
operation of the Master LLC and the Fund, such as tax reporting, fulfill-
ing regulatory filing requirements, and call center services. The Board
reviewed the structure and duties of BlackRock’s fund administration,
accounting, legal and compliance departments and considered
BlackRock’s policies and procedures for assuring compliance with
applicable laws and regulations.

B. The Investment Performance of the Master LLC, the Fund and
BlackRock: The Board, including the Independent Board Members, also
reviewed and considered the performance history of the Master LLC and
the Fund, as applicable. The Board noted that the Master LLC’s invest-
ment results correspond directly to the investment results of the Fund. In
preparation for the April 20, 2010 meeting, the Board was provided with
reports, independently prepared by Lipper, which included a comprehen-
sive analysis of the Fund’s performance. The Board also reviewed a nar-
rative and statistical analysis of the Lipper data that was prepared by
BlackRock, which analyzed various factors that affect Lipper’s rankings.
In connection with its review, the Board received and reviewed informa-
tion regarding the investment performance of the Fund as compared to a
representative group of similar funds as determined by Lipper and to all

26 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

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

funds in the Fund’s applicable Lipper category. The Board was provided
with a description of the methodology used by Lipper to select peer
funds. The Board regularly reviews the performance of the Master LLC
and the Fund, as applicable, throughout the year. The Board attaches
more importance to performance over relatively long periods of time,
typically three to five years.

The Board noted that although the Fund underperformed its Peers in
two of the one-, three- and five-year periods reported, underperformance
for at least one of the periods was within 5% of the Lipper Performance
Universe median return of its Peers. The Board and BlackRock discussed
BlackRock’s strategy for improving the Fund’s performance and
BlackRock’s commitment to providing the resources necessary to
assist the Master LLC’s portfolio managers and to improve the
Fund's performance.

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

The Board received and reviewed statements relating to BlackRock’s
financial condition and profitability with respect to the services it pro-
vided the Master LLC and the Fund. The Board was also provided with a
profitability analysis that detailed the revenues earned and the expenses
incurred by BlackRock for services provided to the Master LLC and the
Fund. The Board reviewed BlackRock’s profitability with respect to the
Master LLC and the Fund, as applicable, and other funds the Board
currently oversees for the year ended December 31, 2009 compared
to available aggregate profitability data provided for the year ended
December 31, 2008. The Board reviewed BlackRock’s profitability with
respect to other fund complexes managed by the Manager and/or its
affiliates. The Board reviewed BlackRock’s assumptions and methodol-
ogy of allocating expenses in the profitability analysis, noting the inher-
ent limitations in allocating costs among various advisory products. The
Board recognized that profitability may be affected by numerous factors
including, among other things, fee waivers and expense reimbursements
by the Manager, the types of funds managed, expense allocations and
business mix, and the difficulty of comparing profitability as a result of
those factors.

The Board noted that, in general, individual fund or product line prof-
itability of other advisors is not publicly available. Nevertheless, to the
extent such information was available, the Board considered BlackRock’s

operating margin, in general, compared to the operating margin for lead-
ing investment management firms whose operations include advising
open-end funds, among other product types. That data indicates that
operating margins for BlackRock with respect to its registered funds are
generally consistent with margins earned by similarly situated publicly
traded competitors. In addition, the Board considered, among other
things, certain third party data comparing BlackRock’s operating margin
with that of other publicly-traded asset management firms. That third
party data indicates that larger asset bases do not, in themselves, trans-
late to higher profit margins.

In addition, the Board considered the cost of the services provided to
the Master LLC and the Fund by BlackRock, and BlackRock’s and its
affiliates’ profits relating to the management and distribution of the
Master LLC and the Fund and the other funds advised by BlackRock and
its affiliates. As part of its analysis, the Board reviewed BlackRock’s
methodology in allocating its costs to the management of the Master
LLC and the Fund. The Board also considered whether BlackRock has
the financial resources necessary to attract and retain high quality
investment management personnel to perform its obligations under the
Agreements and to continue to provide the high quality of services that
is expected by the Board.

The Board noted that the Master LLC’s contractual advisory fee rate was
lower than or equal to the median contractual advisory fee rate paid by
the Fund's Peers, in each case before taking into account any expense
reimbursements or fee waivers. The Board also noted that the Master
LLC has an advisory fee arrangement that includes breakpoints that
adjust the fee rate downward as the size of the Master LLC increases
above certain contractually specified levels. The Board noted that
BlackRock and the Fund’s distributor have voluntarily agreed to waive
a portion of their respective fees and/or reimburse operating expenses
to enable the Fund and Master LLC to maintain minimum levels of daily
net investment income. This waiver and/or reimbursement may be
discontinued at any time without notice.

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

E. Other Factors Deemed Relevant by the Board Members: The Board,
including the Independent Board Members, also took into account other
ancillary or “fall-out” benefits that BlackRock or its affiliates and signifi-
cant shareholders may derive from their respective relationships with

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

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

the Master LLC and the Fund, both tangible and intangible, such as
BlackRock’s ability to leverage its investment professionals who manage
other portfolios, an increase in BlackRock’s profile in the investment
advisory community, and the engagement of BlackRock’s affiliates and
significant shareholders as service providers to the Master LLC and the
Fund, including for administrative, transfer agency and distribution serv-
ices. The Board also considered BlackRock’s overall operations and its
efforts to expand the scale of, and improve the quality of, its operations.
The Board also noted that BlackRock may use and benefit from third
party research obtained by soft dollars generated by certain mutual fund
transactions to assist in managing all or a number of its other client
accounts. The Board further noted that BlackRock completed the acqui-
sition of a complex of exchange-traded funds (“ETFs”) on December 1,
2009, and that BlackRock’s funds may invest in such ETFs without any
offset against the management fees payable by the funds to BlackRock.

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

The Board noted the competitive nature of the open-end fund market-
place, and that shareholders are able to redeem their Fund shares if
they believe that the Fund’s and/or Master LLC’s fees and expenses are
too high or if they are dissatisfied with the performance of the Fund.

Conclusion

The Board of the Master LLC, including the Independent Board
Members, unanimously approved the continuation of the Advisory
Agreement between the Manager and the Master LLC for a one-year
term ending June 30, 2011 and the Sub-Advisory Agreement between
the Manager and the Sub-Advisor, with respect to the Master LLC, for a
one-year term ending June 30, 2011. Based upon its evaluation of all of
the aforementioned factors in their totality, the Board of the Master
LLC, including the Independent Board Members, was satisfied that
the terms of the Agreements were fair and reasonable and in the best
interest of the Master LLC and its shareholders. The Board of the Fund,
including the Independent Board Members, also considered the contin-
uation of the Agreements with respect to the Master LLC and found the
Agreements to be satisfactory. In arriving at a decision to approve the
Agreements, the Board of the Master LLC did not identify any single fac-
tor or group of factors as all-important or controlling, but considered all
factors together, and different Board Members may have attributed differ-
ent weights to the various factors considered. The Independent Board
Members were also assisted by the advice of independent legal counsel
in making this determination. The contractual fee arrangements for the
Master LLC reflect the results of several years of review by the Board
Members and predecessor Board Members, and discussions between
such Board Members (and predecessor Board Members) and BlackRock.
Certain aspects of the arrangements may be the subject of more attent-
ion in some years than in others, and the Board Members’ conclusions
may be based in part on their consideration of these arrangements in
prior years.

28 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Officers and Directors

Ronald W. Forbes, Co-Chair of the Board of Directors and Director
Rodney D. Johnson, Co-Chair of the Board of Directors and Director
Richard S. Davis, Director
Henry Gabbay, Director
David O. Beim, Director
Dr. Matina S. Horner, Director
Herbert I. London, Director and Member of the Audit Committee
Cynthia A. Montgomery, Director
Joseph P. Platt, Jr., Director
Robert C. Robb, Jr., Director
Toby Rosenblatt, Director
Kenneth L. Urish, Chair of the Audit Committee and Director
Frederick W. Winter, Director and Member of the Audit Committee
John M. Perlowski, President and Chief Executive Officer
Richard Hoerner, Vice President
Jeffrey Holland, Vice President
Brendan Kyne, Vice President
Simon Mendelson, Vice President
Brian Schmidt, Vice President
Christopher Stavrakos, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer
Howard Surloff, Secretary

Investment Advisor and Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Investment Management, LLC
Plainsboro, NJ 08536

Custodian
State Street Bank and Trust Company
Boston, MA 02111

Transfer Agent
Financial Data Services, Inc.
Jacksonville, FL 32246

Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540

Distributor
BlackRock Investments, LLC
New York, NY 10022

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Sidley Austin LLP
New York, NY 10019

Address of the Fund
100 Bellevue Parkway
Wilmington, DE 19809

Effective September 24, 2010, John M. Perlowski became
President and Chief Executive Officer of the Fund/Master LLC.

BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

Additional Information

General Information

Electronic Delivery

Electronic copies of most financial reports and prospectuses are available
on the Fund’s website or shareholders can sign up for e-mail notifications
of quarterly statements, annual and semi-annual reports and prospec-
tuses by enrolling in the Fund’s electronic delivery program.

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

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

Householding

The Fund will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice
is commonly called “householding” and it is intended to reduce
expenses and eliminate duplicate mailings of shareholder documents.
Mailings of your shareholder documents may be householded indefi-
nitely 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 the Transfer Agent at (800) 221-7210.

Availability of Quarterly Portfolio Schedule

The Fund/Master LLC files its complete schedule of portfolio
holdings with the Securities and Exchange Commission (the “SEC”)
for the first and third quarters of each fiscal year on Form N-Q. The
Fund’s/Master LLC’s Forms N-Q are available on the SEC’s website
at http://www.sec.gov and may also be reviewed and copied at the
SEC’s Public Reference Room in Washington, D.C. Information on the
operation of the Public Reference Room may be obtained by calling
(800) SEC-0330. The Fund’s/Master LLC’s Forms N-Q may also be
obtained upon request and without charge by calling (800) 626-1960.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund/Master LLC
uses to determine how to vote proxies relating to portfolio securities is
available (1) without charge, upon request, by calling (800) 626-1960;
(2) at http://www.blackrock.com; and (3) on the SEC’s website at
http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund/Master LLC voted proxies relating to
securities held in the Fund’s/Master LLC’s portfolio during the most
recent 12-month period ended June 30 is available upon request and
without charge (1) at http://www.blackrock.com or by calling (800)
626-1960 and (2) on the SEC’s website at http://www.sec.gov.

BlackRock Privacy Principles

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

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

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

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

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

30 BIF TAX-EXEMPT FUND

SEPTEMBER 30, 2010

#11214-9/10

This report is transmitted to shareholders only. It is not

authorized for use as an offer of sale or a solicitation of an

offer to buy shares of the Fund unless accompanied or pre-

ceded by the Fund’s current prospectus. An investment in

the Fund is not insured or guaranteed by the Federal

Deposit Insurance Corporation or any other government

agency. Although the Fund seeks to preserve the value of

your investment at $1.00 per share, it is possible to lose

money by investing in the Fund. Total return information

assumes reinvestment of all distributions. Past performance

results shown in this report should not be considered a rep-

resentation of future performance. For current month-end

performance information, call (800) 626-1960. The Fund’s

current 7-day yield more closely reflects the current earn-

ings of the Fund than the total returns quoted. Statements

and other information herein are as dated and are subject

to change.

Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable

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

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical information and set forth the
qualifications of the proposed nominee to the registrant’s Secretary. There have been no
material changes to these procedures.

Item 11 – Controls and Procedures

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

11(b) – There were no changes in the registrant’s internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

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

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto

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

BIF Tax-Exempt Fund and Master Tax-Exempt LLC

By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer of
BIF Tax-Exempt Fund and Master Tax-Exempt LLC

Date: December 1, 2010

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

By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BIF Tax-Exempt Fund and Master Tax-Exempt LLC

Date: December 1, 2010

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BIF Tax-Exempt Fund and Master Tax-Exempt LLC

Date: December 1, 2010

Bif Tax Exempt Fund Inactive N-CSRSCertified semi-annual shareholder report (management investment company)