UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21051
Name of Fund: BlackRock Maryland Municipal Bond Trust (BZM)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Maryland Municipal Bond Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2008
Date of reporting period: 09/01/2008 – 11/30/2008
| Item 1 – | Schedule of Investments |
| BlackRock Maryland Municipal Bond Trust | ||
| Schedule of Investments November 30, 2008 (Unaudited) | (Percentages shown are based on Net Assets) |
| Par | ||||||||
| Municipal Bonds | (000) | Value | ||||||
| Maryland - 117.9% | Annapolis, Maryland, Special Obligation Revenue Bonds (Park | |||||||
| Place Project), Series A, 5.35%, 7/01/34 | $ | 500 | $ | 333,280 | ||||
| Anne Arundel County, Maryland, EDR (Community College | ||||||||
| Project), 5.25%, 9/01/28 | 1,870 | 1,659,307 | ||||||
| Baltimore County, Maryland, Metropolitan District, GO, 67th | ||||||||
| Issue, 5%, 6/01/22 | 2,000 | 2,024,280 | ||||||
| Baltimore County, Maryland, Metropolitan District, GO, 68th | ||||||||
| Issue, 5%, 8/01/28 | 2,000 | 1,922,360 | ||||||
| Baltimore County, Maryland, Revenue Refunding Bonds (Oak | ||||||||
| Crest Village, Inc.), Series A, 5%, 1/01/37 | 1,000 | 663,120 | ||||||
| Baltimore, Maryland, Special Obligation Tax Bonds | ||||||||
| (Harborview Lot Number 2), 6.50%, 7/01/31 | 1,000 | 797,140 | ||||||
| Baltimore, Maryland, Wastewater Project Revenue Refunding | ||||||||
| Bonds, Series A, 5.20%, 7/01/32 (a)(b) | 3,500 | 3,231,690 | ||||||
| Baltimore, Maryland, Wastewater Project Revenue Refunding | ||||||||
| Bonds, Series A, 5.125%, 7/01/42 (a)(b) | 2,000 | 1,781,880 | ||||||
| Frederick County, Maryland, Special Obligation Tax Bonds (Urbana | ||||||||
| Community Development Authority), 6.625%, 7/01/25 | 1,000 | 774,650 | ||||||
| Howard County, Maryland, Retirement Community Revenue | ||||||||
| Refunding Bonds (Columbia Vantage House Corporation), | ||||||||
| Series A, 5.25%, 4/01/33 | 500 | 305,205 | ||||||
| Maryland State Health and Higher Educational Facilities | ||||||||
| Authority Revenue Bonds (Baltimore Board of Child Care), | ||||||||
| 5.375%, 7/01/32 | 2,000 | 1,771,960 | ||||||
| Maryland State Health and Higher Educational Facilities | ||||||||
| Authority Revenue Bonds (Carroll County General Hospital), | ||||||||
| 6%, 7/01/37 | 1,990 | 1,634,347 | ||||||
| Maryland State Health and Higher Educational Facilities | ||||||||
| Authority Revenue Bonds (Loyola College), 5%, 10/01/39 | 2,000 | 1,613,680 | ||||||
| Maryland State Health and Higher Educational Facilities | ||||||||
| Authority Revenue Bonds (Union Hospital of Cecil County), | ||||||||
| 5.625%, 7/01/32 | 2,000 | 1,711,060 | ||||||
| Maryland State Health and Higher Educational Facilities | ||||||||
| Authority Revenue Bonds (University of Maryland Medical | ||||||||
| System), 5.25%, 7/01/11 (c) | 2,000 | 2,142,360 | ||||||
| Maryland State Health and Higher Educational Facilities | ||||||||
| Authority, Revenue Refunding Bonds (Peninsula Regional | ||||||||
| Medical Center), 5%, 7/01/36 | 1,000 | 771,970 | ||||||
| Maryland State Industrial Development Financing Authority, EDR | ||||||||
| (Our Lady of Good Counsel School), Series A, 6%, 5/01/35 | 1,000 | 699,140 |
| 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 list below.
| AMT | Alternative Minimum Tax (subject to) |
| EDR | Economic Development Revenue Bonds |
| GO | General Obligation Bonds |
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| BlackRock Maryland Municipal Bond Trust | ||
| Schedule of Investments November 30, 2008 (Unaudited) | (Percentages shown are based on Net Assets) |
| Par | ||||||||
| Municipal Bonds | (000) | Value | ||||||
| Maryland State Transportation Authority, Parking Revenue | ||||||||
| Bonds (Baltimore/Washington International Airport), AMT, | ||||||||
| Series B, 5.125%, 3/01/24 (d) | $ | 2,000 | $ | 1,597,140 | ||||
| Montgomery County, Maryland, Lease Revenue Bonds | ||||||||
| (Metrorail Garage Projects), 5%, 6/01/23 | 500 | 496,940 | ||||||
| Montgomery County, Maryland, Lease Revenue Bonds | ||||||||
| (Metrorail Garage Projects), 5%, 6/01/24 | 1,435 | 1,418,225 | ||||||
| Prince Georges County, Maryland, Special Obligation Bonds | ||||||||
| (National Harbor Project), 5.20%, 7/01/34 | 1,500 | 783,105 | ||||||
| 28,132,839 | ||||||||
| Multi-State - 9.2% | Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (e)(f) | 2,000 | 2,197,580 | |||||
| Puerto Rico - 22.0% | Children's Trust Fund Project of Puerto Rico, Tobacco | |||||||
| Settlement Revenue Refunding Bonds, 5.50%, 5/15/39 | 1,500 | 1,062,600 | ||||||
| Puerto Rico Commonwealth Highway and Transportation | ||||||||
| Authority, Highway Revenue Refunding Bonds, Series CC, | ||||||||
| 5.25%, 7/01/36 (g) | 2,595 | 2,283,366 | ||||||
| Puerto Rico Commonwealth Highway and Transportation | ||||||||
| Authority, Transportation Revenue Refunding Bonds, Series D, | ||||||||
| 5.25%, 7/01/12 (c) | 1,500 | 1,625,235 | ||||||
| Puerto Rico Public Buildings Authority, Government Facilities | ||||||||
| Revenue Refunding Bonds, Series D, 5.375%, 7/01/33 | 350 | 272,850 | ||||||
| 5,244,051 | ||||||||
| Total Municipal Bonds - 149.1% | 35,574,470 | |||||||
| Municipal Bonds Transferred to | ||||||||
| Tender Option Bond Trusts (h) | ||||||||
| Maryland - 11.6% | Maryland State Transportation Authority, Transportation Facilities | |||||||
| Projects Revenue Bonds, 5%, 7/01/41 (g) | 3,000 | 2,769,390 | ||||||
| Total Municipal Bonds Transferred to | ||||||||
| Tender Option Bond Trusts - 11.6% | 2,769,390 | |||||||
| Total Long-Term Investments (Cost - $43,414,879) - 160.7% | 38,343,860 | |||||||
| Short-Term Securities | Shares | |||||||
| Merrill Lynch Institutional Tax-Exempt Fund, 1.08% (i)(j) | 2,400,000 | 2,400,000 | ||||||
| Total Short-Term Securities (Cost - $2,400,000) - 10.1% | 2,400,000 | |||||||
| Total Investments (Cost - $45,814,879*) - 170.8% | 40,743,860 | |||||||
| Other Assets Less Liabilities - 2.7% | 648,941 | |||||||
| Liability for Trust Certificates, Including Interest Expense and Fees | ||||||||
| Payable - (6.4)% | (1,515,798 | ) | ||||||
| Preferred Shares, at Redemption Value - (67.1)% | (16,007,007 | ) | ||||||
| Net Assets Applicable to Common Shares - 100.0% | 23,869,996 |
| * | The cost and unrealized appreciation (depreciation) of investments as of November 30, 2008, as computed for federal income tax purposes, were as follows: |
| Aggregate cost | $ | 44,237,893 | |||
| Gross unrealized appreciation | $ | 693,465 | |||
| Gross unrealized depreciation | (5,687,498 | ) | |||
| Net unrealized depreciation | $ | (4,994,033 | ) |
2
| BlackRock Maryland Municipal Bond Trust |
| Schedule of Investments November 30, 2008 (Unaudited) |
| (a) |
MBIA Insured. |
| (b) |
FGIC Insured. |
| (c) |
U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (d) |
AMBAC Insured. |
| (e) |
Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (f) |
Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity. |
| (g) |
FSA Insured. |
| (h) |
Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. |
| (i) |
Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: |
| Net | |||||
| Affiliate | Activity | Income | |||
| Merrill Lynch Institutional Tax-Exempt Fund | 296,574 | $ 14,506 |
| (j) | Represents the current yield as of report date. |
Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are follows:
Level 1 - price quotations in active markets/exchanges for identical securities
Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (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 circumstance, to the extent observable inputs are not available (including the Trust's own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.
The following table summarizes the inputs used as of November 30, 2008 in determining the fair valuation of the Trust's investments:
| Valuation | Investments in | |||
| Inputs | Securities | |||
| Level 1 | $ | 2,400,000 | ||
| Level 2 | 38,343,860 | |||
| Level 3 | - | |||
| Total | $ | 40,743,860 |
3
| Item 2 – | Controls and Procedures | |
| 2(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 13a-15(b) under the Securities Exchange Act of 1934, as amended. | |
| 2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. | |
| Item 3 – | Exhibits | |
| 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. | ||
| BlackRock Maryland Municipal Bond Trust | ||
| By: | /s/ Donald C. Burke |
|
| Donald C. Burke | ||
| Chief Executive Officer of | ||
| BlackRock Maryland Municipal Bond Trust | ||
| Date: | January 20, 2009 | |
| 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/ Donald C. Burke |
|
| Donald C. Burke | ||
| Chief Executive Officer (principal executive officer) of | ||
| BlackRock Maryland Municipal Bond Trust | ||
| Date: | January 20, 2009 | |
| By: | /s/ Neal J. Andrews |
|
| Neal J. Andrews | ||
| Chief Financial Officer (principal financial officer) of | ||
| BlackRock Maryland Municipal Bond Trust | ||
| Date: | January 20, 2009 | |