BlackRock Maryland Municipal Bond Trust

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: John M. Perlowski, Chief Executive Officer, BlackRock Maryland Municipal Bond Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2013

Date of reporting period: 11/30/2012


Item 1 – Schedule of Investments


 

 

Schedule of Investments   November 30, 2012 (Unaudited)

 

 

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)

 

     Par
(000)
     Value  
Municipal Bonds              

Maryland — 119.3%

                 

Corporate — 0.9%

     

Maryland EDC, Refunding RB, Potomac Electric Power Co., 6.20%, 9/01/22

   $ 250       $ 311,028   

County/City/Special District/School District — 21.7%

  

  

City of Annapolis Maryland, Tax Allocation Bonds, Park Place Project, Series A, 5.35%, 7/01/34

     483         489,825   

City of Baltimore Maryland, Special Tax Bonds, SO, Harborview Lot No. 2, 6.50%, 7/01/31

     960         987,523   

County of Montgomery Maryland, GO Refunding, Consolidated Public Improvement Bonds, Series A, 5.00%, 7/01/26

     500         614,630   

County of Prince George’s Maryland, SO, National Harbor Project, 5.20%, 7/01/34

     1,500         1,540,560   

State of Maryland, First Series B, 5.00%, 3/15/22

     250         309,935   

State of Maryland, GO, State & Local Facilities Loan, Second Series B, 3.00%, 8/01/27

     2,500         2,650,225   

State of Maryland, GO, Refunding, State & Local Facilities Loan, Third Series C, 5.00%, 11/01/20

     500         648,585   
                7,241,283   

Education — 29.5%

     

Anne County Arundel, Refunding RB, Maryland Economic Development, Anne Arundel Community College Project:

     

4.00%, 9/01/27

     510         572,546   

3.25%, 9/01/28

     360         375,498   

Maryland Health & Higher Educational Facilities Authority, RB, Board of Child Care, 5.38%, 7/01/32

     2,000         2,003,980   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Maryland Institute College of Art, 5.00%, 6/01/29

     500         581,700   

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

     

Goucher College, Series A, 5.00%, 7/01/34

     1,000         1,176,460   

Johns Hopkins University Project, Series A, 5.00%, 7/01/27

     1,000         1,265,990   

Johns Hopkins University Project, Series A, 4.00%, 7/01/37

     500         552,785   

Loyola University Maryland Issue, Series A, 5.00%, 10/01/39

     900         1,062,387   
     Par
(000)
     Value  
Municipal Bonds              

Maryland (continued)

                 

Education (concluded)

     

Maryland Health & Higher Educational Facilities Authority, Refunding RB (concluded):

     

Notre Dame Maryland University, 5.00%, 10/01/42

   $ 500       $ 552,725   

Maryland Industrial Development Financing Authority, RB, Our Lady Of Good Counsel School, Series A, 6.00%, 5/01/35

     1,000         1,050,360   

University System of Maryland, Refunding RB, Series D, 5.00%, 10/01/21

     500         653,705   
                9,848,136   

Health — 20.9%

     

County of Howard Maryland, Refunding RB, Vantage House Facility, Series A, 5.25%, 4/01/33

     500         501,595   

County of Montgomery Maryland, Refunding RB, 5.00%, 12/01/40

     1,000         1,151,660   

Gaithersburg Maryland, Refunding RB, Asbury Maryland Obligation, Series B, 6.00%, 1/01/23

     250         283,712   

Maryland Health & Higher Educational Facilities Authority, RB, Anne Arundel Health System, 5.00%, 7/01/40

     1,000         1,093,670   

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

     

Anne Arundel Health System, 5.00%, 7/01/27

     500         595,615   

Charlestown Community, 6.25%, 1/01/41

     1,000         1,169,150   

Doctor’s Community Hospital, 5.75%, 7/01/38

     500         551,245   

Frederick Memorial Hospital, Series A, 4.00%, 7/01/38 (a)

     500         512,405   

University of Maryland Medical System, 5.13%, 7/01/39

     1,000         1,116,620   
                6,975,672   

Housing — 15.0%

     

Maryland Community Development Administration, RB:

     

AMT, 5.10%, 9/01/37

     1,000         1,052,690   

Housing, Series A, 4.05%, 7/01/42

     1,220         1,271,813   

Residential, Series A, 5.05%, 9/01/39

     500         541,015   

Residential, Series B, 4.75%, 9/01/39

     150         159,848   
 

 

                 
      BLACKROCK MARYLAND MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    1


 

 

Schedule of Investments (continued)

 

 

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)

 

     Par
(000)
     Value  
Municipal Bonds              

Maryland (concluded)

                 

Housing (concluded)

     

Maryland Community Development Administration, Refunding RB, Residential, Series B, 5.25%, 9/01/35

   $ 1,755       $ 1,970,444   
                4,995,810   

Transportation — 14.8%

     

Maryland EDC, RB:

     

Term Project, Series B, 5.75%, 6/01/35

     500         570,835   

Transportation Facilities Project, Series A, 5.75%, 6/01/35

     500         570,835   

Maryland State Department of Transportation, RB, Series B, 4.00%, 5/15/22

     1,000         1,158,880   

Maryland State Transportation Authority, RB, Baltimore/Washington International Thurgood Marshall Airport, Series A, AMT, 4.00%, 6/01/29

     1,925         2,090,781   

Maryland State Transportation Authority, Refunding RB, Baltimore/Washington International Thurgood Marshall Airport Parking Projects, AMT, 5.00%, 3/01/23

     445         542,548   
                4,933,879   

Utilities — 16.5%

     

City of Baltimore Maryland, Refunding RB, Wastewater Projects, Series A (NPFGC):

     

5.20%, 7/01/32

     2,250         2,258,258   

5.13%, 7/01/42

     1,500         1,505,385   

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25

     500         551,145   

Montgomery County, RB, Series A:

     

5.00%, 4/01/31

     500         598,470   

5.00%, 4/01/32

     500         597,345   
                5,510,603   

Total Municipal Bonds in Maryland

              39,816,411   
     

District of Columbia — 3.5%

                 

Transportation — 3.5%

     

Washington Metropolitan Area Transit Authority, Refunding RB, Transit, Series A, 5.13%, 7/01/32

     1,000         1,159,130   
                   

Guam — 2.9%

                 

State — 2.3%

     

Government of Guam Business Privilege Tax Revenue, RB, Series A, 5.13%, 1/01/42

     250         285,348   

 

     Par
(000)
     Value  
Municipal Bonds              

Guam (concluded)

                 

State (concluded)

     

Territory of Guam, Limited Obligation Bonds, RB, Section 30, Series A, 5.63%, 12/01/29

   $ 410       $ 468,892   
                754,240   

Utilities — 0.6%

     

Guam Power Authority, Refunding RB, Series A, 5.00%, 10/01/34

     175         199,318   

Total Municipal Bonds in Guam

              953,558   
     

Multi-State — 6.6%

                 

Housing — 6.6%

     

Centerline Equity Issuer Trust, 7.20%, 11/15/14 (b)(c)

     2,000         2,199,300   

Puerto Rico — 5.0%

                 

State — 5.0%

     

Commonwealth of Puerto Rico, GO, Refunding, Public Improvement, Series A-4 (AGM), 5.25%, 7/01/30

     130         141,254   

Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series D, 5.38%, 7/01/33

     350         350,665   

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39

     1,000         1,165,750   

Total Municipal Bonds in Puerto Rico

              1,657,669   

Total Municipal Bonds – 137.3%

              45,786,068   
     
     

Municipal Bonds Transferred to

     

Tender Option Bond (TOB) Trusts (d)

     

    

                 

Maryland — 13.9%

                 

Health — 3.5%

     

Maryland Health & Higher Educational Facilities Authority, Refunding RB, 5.00%, 11/15/51

     1,000         1,157,602   

Transportation — 10.4%

     

Maryland State Transportation Authority, RB, Transportation Facility Project (AGM), 5.00%, 7/01/41

     3,000         3,482,010   

Total Municipal Bonds in Maryland

              4,639,612   
     

Puerto Rico — 1.0%

                 

State — 1.0%

     

Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C, 5.25%, 8/01/40

     300         337,518   
 

 

                 
      BLACKROCK MARYLAND MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    2


 

 

Schedule of Investments (continued)

 

 

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)

 

 

     Par
(000)
   Value  

Municipal Bonds Transferred to

     

Tender Option Bond (TOB) Trusts (d)

             

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 14.9%

   $ 4,977,130   

Total Long-Term Investments

     

(Cost – $47,120,288) – 152.2%

          50,763,198   

 

               
      Shares          

Short-Term Securities

                 

FFI Institutional Tax-Exempt Fund, 0.01% (e)(f)

     904,709         904,709   

Total Short-Term Securities

     

(Cost – $904,709) – 2.7%

              904,709   

Total Investments (Cost – $48,024,997*) – 154.9%

  

     51,667,907   

Other Assets Less Liabilities – 0.3%

        98,021   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (7.2)%

   

     (2,401,546)   

VRDP Shares, at Liquidation Value – (48.0)%

  

     (16,000,000)   

Net Assets Applicable to Common
Shares – 100.0%

   

   $ 33,364,382   

    

                 

 

* As of November 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost

   $ 45,551,231   

Gross unrealized appreciation

   $ 3,721,207   

Gross unrealized depreciation

     (4,378)   

Net unrealized appreciation

   $ 3,716,829   

 

(a) When-issued security. Unsettled when-issued transactions were as follows:
Counterparty    Value     

Unrealized

Appreciation

 

Scott & Stringfellow

   $ 512,405       $ 11,630   

 

(b) 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.
(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d) Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(e) Investments in issuers considered to be an affiliate of the Trust during the period ended November 30, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate   

Shares

Held at

August 31,

2012

    

Net

Activity

    

Shares

Held at

November 30,

2012

     Income  

FFI Institutional Tax-Exempt Fund

     180,661         724,048         904,709       $ 71   

 

(f) Represents the current yield as of report date.

 

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:

 

AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
EDC    Economic Development Corp.
GO    General Obligation Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds
SO    Special Obligation
 

 

                 
      BLACKROCK MARYLAND MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    3


 

 

Schedule of Investments (concluded)

 

 

BlackRock Maryland Municipal Bond Trust (BZM)

 

 

 

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

   

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 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 circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks 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 Trust’s investments categorized in the disclosure hierarchy as of November 30, 2012:

   Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments1

           $ 50,763,198               $ 50,763,198   

Short-Term Securities

   $ 904,709                         904,709   

Total

   $ 904,709       $ 50,763,198               $ 51,667,907   

1 See above Schedule of Investments for values in each sector.

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of November 30, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

   Level 1      Level 2     Level 3      Total  

Liabilities:

          

TOB trust certificates

           $ (2,399,847           $ (2,399,847

VRDP Shares

             (16,000,000             (16,000,000

Total

           $ (18,399,847           $ (18,399,847

There were no transfers between levels during the period ended November 30, 2012.

 

 

                 
      BLACKROCK MARYLAND MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    4


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/ John M. Perlowski

     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Maryland Municipal Bond Trust

Date: January 23, 2013

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
     BlackRock Maryland Municipal Bond Trust

Date: January 23, 2013

 

By:     

/s/ Neal J. Andrews

     Neal J. Andrews
     Chief Financial Officer (principal financial officer) of
     BlackRock Maryland Municipal Bond Trust

Date: January 23, 2013