EXHIBIT 99.2

                               DISTRIBUTION REPORT
                                       FOR
                        PREFERREDPLUS TRUST SERIES CZN-1

                                DISTRIBUTION DATE
                                 OCTOBER 1, 2002

                             CUSIP NUMBER 740434881


(i)    the amounts received by the Trustee as of the last such statement in
       respect of principal, interest and premium on the Citizens Utility
       Company Debentures (the "Underlying Securities"):

            Interest:                                  $1,445,250.00
            Principle:                                         $0.00
            Premium:                                           $0.00

(ii)   the amounts of compensation received by the Trustee, for the period
       relating to such Distribution Date:

            Paid by the Trust:                                 $0.00
            Paid by the Depositor:                         $1,000.00

(iii)  the amount of distribution on such Distribution Date to Holders allocable
       to principal of and premium, if any, and interest on the Certificates of
       each such Class and the amount of aggregate unpaid interest accrued as of
       such Distribution Date:

            Interest:                                  $1,444,687.50
            Principal:                                         $0.00

            Unpaid Interest Accrued:                           $0.00

(iv)   the aggregate stated principal amount and, if applicable, notional amount
       of the Underlying Securities related to such Series, the current interest
       rate or rates thereon at the close of business on such Distribution Date,
       and the current relating assigned to the Certificates.

            Principal Amount:                            $41,000,000
            Interest Rate:                                     7.05%

            Rating:
                   Moody's Investor Service                     Baa2
              Standard & Poor's Rating Service                   BBB

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(v)    the aggregate Certificate Principal Balance (or Notional Amount, if
       applicable) of each Class of such Series at the close of business on such
       Distribution Date.

             Class A: ($25 Stated Amount)
             Initial Principal Balance:                  $34,500,000
             Reduction:                                          (0)

             Principal Balance 09/16/02:                 $34,500,000

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