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Exhibit 99.1
[LETTERHEAD]
Independent Accountants' Report on Applying Agreed-Upon Procedures
June 29, 2000
Merrill Lynch Municipal ABS, Inc.
World Financial Center
North Tower, 9th Floor
New York, New York 10281
Attention: Edward Sisk, President
Dear Sirs:
We have performed the procedures agreed by you, as described below, with respect
to the Merrill Lynch Municipal ABS, Inc. (the "Company") annual report on Form
10-K for the fiscal year ended March 31, 2000 ("Form 10-K"). This engagement to
apply agreed-upon procedures was performed in accordance with standards
established by the American Institute of Certified Public Accountants. The
sufficiency of the procedures is solely the responsibility of management of the
Company. Consequently, we make no representation regarding the sufficiency of
the procedures described below either for the purpose for which this report has
been requested or for any other purpose. The procedures that we performed and
our findings are summarized as follows:
1. We obtained the Statements to the Holders of Merrill Lynch Municipal
ABS, Inc. Prerefunded Municipal Certificates, Series 1, Series 2, and
Series 3 (the "Certificates") prepared by the Trustee, Bankers Trust
Company, relating to the distribution dates of April 1, 1999 and
October 1, 1999, such statements (see Exhibit 3 to the Form 10-K)
setting forth on a class-by-class basis the following information
relating to each distribution date:
(i) The amount of interest, principal and premium received in
connection with the distribution dates.
(ii) The amount of interest, principal and premium distributed to
holders of each class of certificates.
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(iii) The amount of any Trustee's fee payable on the distribution
dates.
(iv) If the interest payments received by the Trustee with respect to
the Prerefunded Bonds of an issue are insufficient to make the
required interest distributions with respect to the Certificates
related thereto, the aggregate amount of all interest shortfalls
on the distribution dates and the amount of interest shortfall
allocated to each Certificate class.
(v) If any loss is incurred with respect to the Prerefunded Bonds,
the aggregate amount of all losses on the distribution dates and
the allocation of the losses to each Certificate class.
(vi) The aggregate amount of accrued interest remaining unpaid, if
any, for each class of Certificates and after giving the effect
to the distributions made to each class on the distribution
dates.
(vii) The aggregate Certificate amount of each class of certificates
after giving effect to the distributions made on such
distribution dates and to losses allocated on such distribution
dates.
2. We proved the arithmetic accuracy of the collection and distribution of
payments received on the Prerefunded Bonds in the related Trust during
the period ended March 31, 2000 and found no exceptions.
3. We compared the financial information included in the Statements to
Holders of Merrill Lynch Municipal ABS, Inc. for the year ended March
31, 2000 to the requirements in the Agreement between the Company and
Certificate Holders and found no exceptions.
4. We proved the arithmetic accuracy of the dollar amounts, shown in the
adjusted Statements to Holders of Merrill Lynch Municipal ABS, Inc. in
the Form 10-K and found no exceptions.
5. We inquired of the Secretary whether there were any other significant
events or actions taken during or subsequent to March 31, 2000 not
reflected in the Form 10-K or the minutes and the agendas of the
Company's Board of Directors and committees thereof. We were informed
that no such events or actions had occurred.
We were not engaged to, and did not, perform an audit, the objective of which
would be the expression of an opinion on the financial information of the
Company. Accordingly, we do not express such an opinion. Had we performed
additional procedures, other matters might have come to our attention that would
have been reported to you.
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This report is intended solely for the information and use of the Company and is
not intended to be and should not be used by anyone other than the Company.
Yours truly,
Deloitte & Touche LLP
New York, New York
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