EXHIBIT 99.3
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have examined management's assertion, included in the accompanying Report of
Management on Compliance, that The Bank of New York (the "Company") complied
with the PPLUS Minimum Servicing Standards (attached) as of December 31, 2004
and for the period from May 28, 2004 to December 31, 2004 as it relates to
PPLUS Trust Series DCNA-1. Management is responsible for The Bank of New
York's compliance with those requirements. Our responsibility is to express an
opinion on management's assertion about The Bank of New York's compliance based
on our examination.
Our examination was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about the Company's
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the Company's compliance with specified requirements.
In our opinion, management's assertion that The Bank of New York complied with
the aforementioned requirements as of December 31, 2004 and for the period from
May 28, 2004 to December 31, 2004 is fairly stated, in all material
respects.
Ernst & Young LLP
New York, New York
March 14, 2005
REPORT OF MANAGEMENT ON COMPLIANCE
March 14, 2005
We, as members of management of The Bank of New York, (the "Company") are
responsible for complying with the requirements of the PPLUS Minimum Servicing
Standards as it relates to PPLUS Trust Series DCNA-1. We also are responsible
for establishing and maintaining effective internal control over compliance with
the PPLUS Minimum Servicing Standards. We have performed an evaluation of the
Company's compliance with the requirements of PPLUS Minimum Servicing Standards
as it relates to PPLUS Trust Series DCNA-1 as of December 31, 2004 and for the
period from May 28, 2004 (inception of trust series) to December 31, 2004. Based
on this evaluation, we assert that for the period from May 28, 2004 to December
31, 2004, the Company complied with the requirements of the PPLUS Minimum
Servicing Standards (attached).
/s/ Robert L. Griffin
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Robert L. Griffin
Managing Director
/s/ Kevin Cremin
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Kevin Cremin
Vice President
APPENDIX I
PPLUS Minimum Servicing Standards intended
for use in connection with the Annual
Accountants Report ("AAR")
Below is Merrill Lynch Depositor, Inc.'s ("the Depositor") together with Merrill
Lynch High Grade Credit Management ("HGCM") and the Merrill Lynch Credit
Derivative Integrated Support Solutions ("ISS"), minimum servicing standards for
the PreferredPlus Program ("PPlus"). The Bank of New York ("the Bank") acts as
Trustee, Custodian, Paying Agent, and Transfer Agent on behalf of the PPlus
Program and has agreed to comply with these minimum servicing standards.
MERRILL LYNCH DEPOSITOR, INC.'S MINIMUM SERVICING STANDARDS
1. CUSTODIAL BANK ACCOUNT RECONCILIATIONS
o The Bank must reconcile all related custodial bank accounts.
o The Bank will include the Distribution report as Exhibit 99.1 in the Form
8-Ks filed with the SEC.
2. VERIFICATION OF INCOMING TRUST COLLATERAL INTEREST PAYMENTS
o The Bank must have a tickler system in place so that they will be
expecting and monitoring the custodial bank account for receipt of the
collateral coupon interest. Each of the tickler systems shall be updated
on an on-going basis as each new trust series is created.
o The Bank will ensure all interest payments are deposited into the
custodial bank accounts and related bank clearing accounts on the day the
Bank is in receipt of the funds.
o The Bank must prove the arithmetic accuracy of the amount of interest
received by the Trust from the underlying securities and ensure that the
face amount, description, coupon rate, and maturity date of the securities
held in the Trust agree to the PPM Supplement dated Date XX, 20XX.
3. TRUST DISBURSEMENTS
o The Bank must prove the arithmetic accuracy of the amount of interest to
be paid by the Trust to the Debt Unit holders by referring to the PPM
Supplement dated Date XX, 20XX.
o The Bank will make all disbursements via wire transfer to The Depository
Trust Company ("DTC") on the scheduled trust distribution date as soon as
the amount of interest received from the underlying collateral into the
custodial bank account has been received and verified for accuracy.
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4. PARTIAL REDEMPTIONS
o If there is a partial redemption of the trust certificates the Bank and
the Depositor must ensure that the redemption proceeds received by the
trust and distributed by the Bank are in accordance with the series
supplement.
5. DEFAULTS
o If the Bank has actual knowledge of an event of default on the underlying
securities that did not cause the trust to liquidate, the Bank must
distribute a formal notice of default to the Depositor, the
certificateholders, the rating agencies and HGCM/ISS.
o If the Bank has actual knowledge of an event of default on the underlying
securities that did not cause the Trust to liquidate, the procedures for a
vote or consent of the certificateholders as set forth in the Standard
Terms and series Supplement must be complied with.
6. CALL WARRANT EXERCISES AND OPTIONAL EXCHANGES
o If there is an exercise of call warrants or an optional exchange of trust
certificates for underlying securities that did not cause the trust to
liquidate, the Bank must give the Depositor and the affected
certificateholders notice of any exercise of call warrants or optional
exchange. Such notice must contain the amount of certificates to be
purchased, the call price, and any other relevant information.
o If there is an exercise of call warrants or an optional exchange of trust
certificates for underlying securities that did not cause the trust to
liquidate, the Bank must notify the rating agencies of the call exercise
or optional exchange.
o If there is an exercise of call warrants or an optional exchange of trust
certificates for underlying securities that did not cause the trust to
liquidate, the Bank must give notice of exercise or optional exchange to
the Depositor and certificate registrar of any certificates that were
called.
7. COMMUNICATIONS WITH CERTIFICATEHOLDERS
o If there was any occasion for the exercise of voting rights or giving
consents by the certificateholders, the Bank must provide notice to the
certificateholders within 5 business days of the Trust's receipt of notice
of the occasion and the Bank must vote or give consents as directed by
certificateholders.
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