mui -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

  Investment Company Act file number 811-21348

Name of Fund: BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Muni
Intermediate Duration Fund, Inc., 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: 05/31/2008

Date of reporting period: 06/01/2007 – 05/31/2008

Item 1 – Report to Stockholders



EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report

MAY 31, 2008

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


Table of Contents     

 
 
    Page 

 
 
A Letter to Shareholders    3 
Annual Report:     
Fund Summaries    4 
The Benefits and Risks of Leveraging    6 
Swap Agreements    6 
Financial Statements:     
     Schedules of Investments    7 
     Statements of Assets and Liabilities    16 
     Statements of Operations    17 
     Statements of Changes in Net Assets    18 
Financial Highlights    19 
Notes to Financial Statements    21 
Report of Independent Registered Public Accounting Firm    27 
Important Tax Information (Unaudited)    28 
Disclosure of Investment Advisory Agreement and Subadvisory Agreement    29 
Automatic Dividend Reinvestment Plan    33 
Officers and Directors    34 
Additional Information    37 

2 ANNUAL REPORT

MAY 31, 2008


A Letter to Shareholders

Dear Shareholder

For much of the reporting period, investors grappled with the repercussions of the credit crisis that surfaced last summer,

and with the effects of a weakening economy and surging energy and food prices. These factors were offset by the posi-

tive impact from robust export activity, strength in the non-financial corporate sector and monetary and fiscal stimuli.

Amid the market turbulence, the Federal Reserve Board (the “Fed”) initiated a series of moves to restore liquidity and

bolster financial market stability. Since September 2007, the central bank slashed the target federal funds rate 325

basis points (3.25%), bringing the rate to 2.0% as of period-end. Also of significance were its other policy decisions,

which included extending use of the discount window to broker-dealers and investment banks and backstopping the

rescue of ill-fated Bear Stearns. Notably, on April 30, the Fed dropped previous references to downside growth risks

and added more emphasis on inflationary pressures, indicating the central bankers have likely concluded the current

cycle of monetary easing.

Nevertheless, the Fed’s response to the financial crisis helped to ease credit turmoil and investor anxiety. Since hitting

a low point on March 17, following the collapse of Bear Stearns, stocks appreciated 10% (through May 30). Most

international markets, which had outperformed U.S. stocks for some time, saw a reversal in that trend, as the troubled

credit situation and downward pressures on growth fanned recession fears.

In fixed income markets, Treasury securities rallied (yields fell as prices correspondingly rose), as a broad “flight-to–

quality” theme persisted. The yield on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level in

five years), fell to a low of 3.34% in March 2008 before rising to 4.06% by May 31 as investors grew more risk tolerant

and shifted out of Treasury issues in favor of stocks and other high-quality fixed income sectors. Tax-exempt issues

underperformed throughout most of the reporting period, pressured by problems among municipal bond insurers and

the freeze in the market for auction rate securities. However, the final two months saw a firmer tone in the municipal

market, as investors took advantage of unusually high yields.

On the whole, results for the major benchmark indexes generally reflected heightened investor risk aversion:

Total Returns as of May 31, 2008    6-month    12-month 

 
 
U.S. equities (S&P 500 Index)    (4.47%)       (6.70%) 

 
 
Small cap U.S. equities (Russell 2000 Index)    (1.87)    (10.53) 

 
 
International equities (MSCI Europe, Australasia, Far East Index)    (5.21)    (2.53) 

 
 
Fixed income (Lehman Brothers U.S. Aggregate Index)    1.49    6.89 

 
 
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)    1.44    3.87 

 
 
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)    1.81    (1.08) 

 
 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly
in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial profes-
sional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial
markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your
investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

3


  Fund Summary as of May 31, 2008 BlackRock Muni Intermediate Duration Fund, Inc.

Investment Objective

BlackRock Muni Intermediate Duration Fund, Inc. (MUI) (the “Fund”) seeks to provide shareholders with high current income exempt from federal
income taxes by investing primarily in a portfolio of municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt
from federal income taxes.

Performance

For the 12 months ended May 31, 2008, the Fund returned (2.76%) based on market price and 0.86% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 1.92% on a NAV basis. All returns reflect reinvest-
ment of dividends. Detracting from the Fund’s performance were its lower-rated holdings, which underperformed the market as credit spreads widened
and liquidity became more scarce. Conversely, the Fund’s greater-than-average distribution rate (ranked 1st out of 7) and its largely neutral duration
positioning benefited results during a period of municipal bond relative underperformance and increasing rates.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on New York Stock Exchange    MUI 
Initital Offering Date    August 1, 2003 
Yield on Closing Market Price as of May 31, 2008 ($13.70)1    5.34% 
Tax Equivalent Yield2    8.22% 
Current Monthly Distribution per share of Common Stock3    $0.061 
Current Annualized Distribution per share of Common Stock3    $0.732 
Leverage as of May 31, 20084    41% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 A change in the distribution rate was declared on June 2, 2008. The Monthly Distribution per Common Stock was decreased to $0.058. The
Yield on Closing Market Price, Current Monthly Distribution and Current Annualized Distribution do not reflect the new distribution rate. The
new distribution rate is not constant and is subject to further change in the future.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred Stock
(“Preferred Stock”) and Tender Option Bond Trusts (“TOBs”)) minus the sum of accrued liabilities.


The table below summarizes the changes in the Fund’s market price and net asset value per share:

    5/31/08    5/31/07    Change    High    Low 

 
 
 
 
 
Market Price    $13.70    $14.85    (7.74%)    $14.89    $12.74 
Net Asset Value    $14.45    $15.10    (4.30%)    $15.22    $14.00 

 
 
 
 
 

The following charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

     Portfolio Composition         

 
 
Sector    5/31/08    5/31/07 

 
 
City/County/State    16%    14% 
Industrial & Pollution Control    16    20 
Hospital    15    14 
Transportation    14    13 
Tax Revenue    10    11 
Education    9    12 
Tobacco    6    6 
Power    6    4 
Lease Revenue    4    3 
Housing    3    2 
Water & Sewer    1    1 

     Credit Quality Allocations5         

 
 
Credit Rating    5/31/08    5/31/07 

 
 
AAA/Aaa     47%    46% 
AA/Aa    11    4 
A/A    11    13 
BBB/Baa    14    19 
BB/Ba    1    2 
B/B    1    1 
CCC/Caa    3    2 
Not Rated6    12    13 

 
 
5 Using the higher of Standard & Poor’s or Moody’s Investors 
       Service ratings.         
   6 The investment advisor has deemed certain of these non-rated 
       securities to be of investment grade quality. As of May 31, 2008 
       and May 31, 2007, the market value of these securities was 
       $20,190,323 representing 2% and $22,781,824 representing 
       2%, respectively, of the Fund’s long-term investments.     
   

4 ANNUAL REPORT MAY 31, 2008


Fund Summary as of May 31, 2008 BlackRock Muni New York Intermediate Duration Fund, Inc.

Investment Objective

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE) (the “Fund”) seeks to provide shareholders with high current income exempt from
federal income taxes and New York State and New York City personal income taxes by investing primarily in a portfolio of municipal obligations, the
interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes and New York State and New York City personal
income taxes.

Performance

For the 12 months ended May 31, 2008, the Fund returned (3.48%) based on market price and (1.10%) based on NAV. For the same period, the
closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of 1.92% on a NAV basis. All returns reflect reinvestment of
dividends. The Fund’s performance continued to be negatively impacted by its below-average distribution rate. As a result, the Fund was more heavily
weighted in longer-dated issues, which proved more volatile as risk spreads increased and the municipal yield curve steepened. The Fund’s lower-
quality holdings also underperformed amid credit spread widening and the scarcity of liquidity, further hampering results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on New York Stock Exchange    MNE 
Initital Offering Date    August 1, 2003 
Yield on Closing Market Price as of May 31, 2008 ($12.81)1    4.96% 
Tax Equivalent Yield2    7.63% 
Current Monthly Distribution per share of Common Stock3    $0.053 
Current Annualized Distribution per share of Common Stock3    $0.636 
Leverage as of May 31, 20084    35% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Preferred Stock and TOBs)
minus the sum of accrued liabilities.


The table below summarizes the changes in the Fund’s market price and net asset value per share:

    5/31/08    5/31/07    Change    High    Low 

 
 
 
 
 
Market Price    $12.81    $13.93    (8.04%)    $13.93    $12.11 
Net Asset Value    $14.05    $14.91    (5.77%)    $14.91    $13.35 

 
 
 
 
 

The following charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

     Portfolio Composition         

 
 
Sector    5/31/08    5/31/07 

 
 
City/County/State    25%    23% 
Hospital    17    17 
Education    16    17 
Housing    13    16 
Transportation    12    5 
Power    9    7 
Industrial & Pollution Control    4    9 
Tobacco    2    4 
Water & Sewer    2    1 
Tax Revenue        1 

     Credit Quality Allocations5         

 
 
Credit Rating    5/31/08    5/31/07 

 
 
AAA/Aaa    20%    28% 
AA/Aa    29    22 
A/A    17    13 
BBB/Baa    20    22 
BB/Ba    7    5 
CCC/Caa    2    3 
Not Rated6    5    7 

 
 

5 Using the higher of Standard & Poor’s or Moody’s Investors
Service ratings.
6 The investment advisor has deemed certain of these non-rated
securities to be of investment grade quality. As of May 31, 2008
and May 31, 2007, the market value of these securities was
$1,967,300 representing 2% and $2,053,400 representing 2%,
respectively, of the Fund’s long-term investments.

ANNUAL REPORT MAY 31, 2008 5


The Benefits and Risks of Leveraging

BlackRock Muni Intermediate Duration Fund, Inc. and BlackRock Muni
New York Intermediate Duration Fund, Inc. (each a “Fund” and, collec-
tively, the “Funds”) utilize leverage to seek to enhance the yield and NAV
of their Common Stock. However, these objectives cannot be achieved in
all interest rate environments.

To leverage, each Fund issues Preferred Stock, which pays dividends at
prevailing short-term interest rates, and invests the proceeds in long-term
municipal bonds. The interest earned on these investments is paid to
Common Stock shareholders in the form of dividends, and the value of
these portfolio holdings is reflected in the per share net asset value of
each Fund’s Common Stock. However, in order to benefit Common Stock
shareholders, the yield curve must be positively sloped; that is, short-
term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit
Common Stock shareholders. If either of these conditions change, then
the risks of leveraging will begin to outweigh the benefits.

To illustrate these concepts, assume a fund’s Common Stock capitalization
of $100 million and the issuance of Preferred Stock for an additional
$50 million, creating a total value of $150 million available for investment
in long-term municipal bonds. If prevailing short-term interest rates are
approximately 3% and long-term interest rates are approximately 6%,
the yield curve has a strongly positive slope. The fund pays dividends on
the $50 million of Preferred Stock based on the lower short-term interest
rates. At the same time, the fund’s total portfolio of $150 million earns
the income based on long-term interest rates.

In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund’s long-term invest-
ments, and therefore the Common Stock shareholders are the benefici-
aries of the incremental yield. However, if short-term interest rates rise,
narrowing the differential between short-term and long-term interest
rates, the incremental yield pickup on the Common Stock will be reduced
or eliminated completely. At the same time, the market value of the
fund’s Common Stock (that is, its price as listed on the New York Stock
Exchange), may, as a result, decline. Furthermore, if long-term interest

rates rise, the Common Stock’s NAV will reflect the full decline in the
price of the portfolio’s investments, since the value of the fund’s
Preferred Stock does not fluctuate. In addition to the decline in NAV,
the market value of the fund’s Common Stock may also decline.

In addition, the Funds may from time to time leverage their assets
through the use of tender option bond (“TOB”) programs. In a typical
TOB program, the Fund transfers one or more municipal bonds to a TOB
trust, which issues short-term variable rate securities to third-party
investors and a residual interest to the Fund. The cash received by the
TOB trust from the issuance of the short-term securities (less transaction
expenses) is paid to the Fund, which invests the cash in additional port-
folio securities. The distribution rate on the short-term securities is reset
periodically (typically every seven days) through a remarketing of the
short-term securities. Any income earned on the bonds in the TOB trust,
net of expenses incurred by the TOB trust, that is not paid to the holders
of the short-term securities is paid to the Fund. In connection with man-
aging the Funds’ assets, the Funds’ investment advisor may at any time
retrieve the bonds out of the TOB trust typically within seven days. TOB
investments generally will provide the Funds with economic benefits in
periods of declining short-term interest rates, but expose the Funds to
risks during periods of rising short-term interest rates similar to those
associated with Preferred Stock issued by the Funds, as described
above. Additionally, fluctuations in the market value of municipal secu-
rities deposited into the TOB trust may adversely affect the Funds’ NAVs
per share. (See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOB trusts.)

Under the Investment Company Act of 1940, the Funds are permitted to
issue Preferred Stock in an amount up to 50% of their total managed
assets at the time of issuance. Each Fund also anticipates that its total
economic leverage, which includes Preferred Stock and TOBs, will not
exceed 50% of its total managed assets. As of May 31, 2008, BlackRock
Muni Intermediate Duration Fund, Inc. and BlackRock Muni New York
Intermediate Duration Fund, Inc. had economic leverage of 41% and
35% of their total managed assets, respectively.

Swap Agreements

The Funds may invest in swap agreements, which are over-the-counter
contracts in which one party agrees to make periodic payments based on
the change in market value of a specified bond, basket of bonds, or index
in return for periodic payments based on a fixed or variable interest rate or
the change in market value of a different bond, basket of bonds or index.
Swap agreements may be used to obtain exposure to a bond or market

without owning or taking physical custody of securities. Swap agreements
involve the risk that the party with whom each Fund has entered into a
swap will default on its obligation to pay the Fund and the risk that the
Fund will not be able to meet its obligations to pay the other party to
the agreement.

6 ANNUAL REPORT

MAY 31, 2008


Schedule of Investments May 31, 2008 BlackRock Muni Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Alabama — 3.1%         
Jefferson County, Alabama, Limited Obligation School         
 Warrants, Series A:         
     5.50%, 1/01/21    $ 5,500     $5,202,450 
     5.25%, 1/01/23    6,500    6,080,555 
Tuscaloosa, Alabama, Special Care Facilities Financing         
 Authority, Residential Care Facility Revenue         
 Bonds (Capstone Village, Inc. Project), Series A,         
 5.625%, 8/01/25    6,600    5,878,818 
       
        17,161,823 

 
 
Arizona — 2.9%         
Maricopa County, Arizona, IDA, Education Revenue         
 Bonds (Arizona Charter Schools Project 1), Series A,         
 6.625%, 7/01/20    2,820    2,566,510 
Navajo County, Arizona, IDA, IDR (Stone Container         
 Corporation Project), AMT, 7.20%, 6/01/27    3,000    2,748,480 
Pima County, Arizona, IDA, Education Revenue Bonds         
 (Arizona Charter Schools Project):         
     Series C, 6.70%, 7/01/21    990    1,013,156 
     Series K, 6.375%, 7/01/13 (a)    820    938,383 
     Series K, 6.375%, 7/01/31    930    930,735 
Salt River Project, Arizona, Agriculture Improvement         
 and Power District, Electric System Revenue Bonds,         
 Series A, 5%, 1/01/25    4,000    4,217,920 
Vistancia Community Facilities District, Arizona, GO,         
 5%, 7/15/14    3,630    3,631,670 
       
        16,046,854 

 
 
Arkansas — 0.7%         
Conway, Arkansas, Public Facilities Board, Capital         
 Improvement Revenue Refunding Bonds (Hendrix         
 College Projects), Series B, 5%, 10/01/26    3,755    3,761,984 

 
 
California — 17%         
Antelope Valley, California, Health Care District Revenue         
 Bonds, Series A, 5.25%, 9/01/17    8,000    8,045,920 
California Pollution Control Financing Authority, PCR,         
 Refunding (Pacific Gas & Electric), AMT, Series A,         
 5.35%, 12/01/16 (c)    17,730    18,388,138 
California Pollution Control Financing Authority, Solid         
 Waste Disposal Revenue Bonds (Republic Services         
 Inc. Project), AMT:         
     Series A-2, 5.40%, 4/01/25    1,240    1,156,747 
     Series B, 5.25%, 6/01/23    750    723,210 
California State Department of Water Resources,         
 Power Supply Revenue Bonds, Series A,         
 5.375%, 5/01/12 (a)    5,000    5,506,350 
California State, GO:         
     5.50%, 4/01/14 (a)    14,795    16,676,628 
     5.50%, 4/01/28    15    15,723 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
California (concluded)         
California State, GO, Refunding, 5.25%, 2/01/27 (c)    $ 5,000     $5,132,750 
California State Public Works Board, Lease Revenue         
 Bonds (Department of Corrections), Series C,         
 5.50%, 6/01/20    10,000    10,661,100 
California Statewide Communities Development         
 Authority, Health Facility Revenue Bonds (Memorial         
 Health Services), Series A, 6%, 10/01/23 (d)    2,500    2,626,825 
Elk Grove, California, Poppy Ridge Community Facilities         
 Number 3 Special Tax, Series 1, 6%, 9/01/08 (a)    2,400    2,446,152 
Golden State Tobacco Securitization Corporation of         
 California, Tobacco Settlement Revenue Refunding         
 Bonds, Senior Series A-1, 5%, 6/01/15    5,000    4,878,950 
Los Angeles, California, Regional Airports Improvement         
 Corporation, Facilities Lease Revenue Refunding         
 Bonds (LAXFUEL Corporation — Los Angeles         
 International Airport), AMT, 5.50%, 1/01/32 (e)    1,435    1,446,049 
Rowland, California, Unified School District, GO         
 (Election of 2000), Series B, 5.25%, 8/01/27 (d)    1,515    1,576,706 
Sacramento, California, Special Tax (North Natomas         
 Community Facilities), Series 4-C:         
     5.60%, 9/01/20    585    582,280 
     5.75%, 9/01/22    1,715    1,715,720 
     5.90%, 9/01/23    500    503,580 
     6.00%, 9/01/28    2,990    2,968,891 
Sacramento County, California, Airport System Revenue         
 Bonds, Senior Series A, 5%, 7/01/28 (d)    1,695    1,749,155 
Southern California HFA, S/F Mortgage Revenue Bonds,         
 AMT, Series A, 5.80%, 12/01/49 (f)(g)    3,960    3,972,118 
Tustin, California, Unified School District, Senior Lien         
 Special Tax Bonds (Community Facilities District         
 Number 97-1), Series A, 5%, 9/01/32 (d)    2,610    2,646,697 
       
        93,419,689 

 
 
Colorado — 2.8%         
Colorado Educational and Cultural Facilities Authority,         
 Revenue Refunding Bonds (National Jewish         
 Federation Bond Program Project), VRDN, Series A-8,         
 1.10%, 9/01/35 (b)    3,250    3,250,000 
Elk Valley, Colorado, Public Improvement Revenue         
 Bonds (Public Improvement Fee), Series A,         
 7.10%, 9/01/14    700    730,828 
Montrose, Colorado, Memorial Hospital, Revenue         
 Bonds, 6.375%, 12/01/23    2,250    2,368,282 
Plaza Metropolitan District Number 1, Colorado, Tax         
 Allocation Revenue Bonds (Public Improvement         
 Fees), 7.50%, 12/01/15    7,500    8,022,900 
Southlands Metropolitan District Number 1, Colorado,         
 GO, 6.75%, 12/01/14 (a)    1,000    1,150,720 
       
        15,522,730 

 
 

Portfolio Abbreviations                 

 
 
 
 
 
To simplify the listings of portfolio holdings in the    AMT    Alternative Minimum Tax (subject to)    M/F    Multi-Family 
Schedules of Investments, we have abbreviated the    COP    Certificates of Participation    PCR    Pollution Control Revenue Bonds 
names and descriptions of many of the securities    EDA    Economic Development Authority    PILOT    Payment in Lieu of Taxes 
according to the list on the right.    EDR    Economic Development Revenue Bonds    S/F    Single-Family 
    GO    General Obligation Bonds    SIFMA    Securities Industry and Financial 
    HFA    Housing Finance Agency        Markets Association 
    IDA    Industrial Development Authority    VRDN    Variable Rate Demand Notes 
    IDR    Industrial Development Revenue Bonds         
See Notes to Financial Statements.                 

ANNUAL REPORT

MAY 31, 2008

7


Schedule of Investments (continued) BlackRock Muni Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Connecticut — 1.3%         
Connecticut State Development Authority, Airport         
 Facility Revenue Bonds (Learjet Inc. Project), AMT,         
 7.95%, 4/01/26    $ 1,160     $1,252,545 
Connecticut State Development Authority, PCR,         
 Refunding (Connecticut Light and Power Company),         
 Series A, 5.85%, 9/01/28    6,000    5,984,580 
       
        7,237,125 

 
 
Florida — 4.5%         
Harbor Bay, Florida, Community Development District,         
 Capital Improvement Special Assessment Bonds,         
 6.75%, 5/01/34    2,860    2,842,468 
Highlands County, Florida, Health Facilities Authority,         
 Hospital Revenue Refunding Bonds (Adventist Health         
 System), Series G, 5.125%, 11/15/32    1,000    970,810 
Miami-Dade County, Florida, Aviation Revenue         
 Refunding Bonds (Miami International Airport),         
 AMT, 5.75%, 10/01/19 (h)    5,500    5,592,840 
Midtown Miami, Florida, Community Development         
 District, Special Assessment Revenue Bonds:         
     Series A, 6%, 5/01/24    3,465    3,204,051 
     Series B, 6.50%, 5/01/37    1,975    1,779,100 
Orlando, Florida, Urban Community Development         
 District, Capital Improvement Special Assessment         
 Bonds, 6%, 5/01/20    820    766,192 
Panther Trace Community Development District II,         
 Florida, Special Assessment Revenue Bonds,         
 5.125%, 11/01/13    2,260    2,079,110 
Portofino Shores, Florida, Community Development         
 District, Special Assessment Bonds, Series A,         
 6.40%, 5/01/34    1,085    1,075,441 
South Lake County, Florida, Hospital District Revenue         
 Bonds (South Lake Hospital Inc.), 6.625%, 10/01/23    2,390    2,511,532 
Sterling Hill Community Development District, Florida,         
 Capital Improvement Revenue Refunding Bonds,         
 Series B, 5.50%, 11/01/10    185    183,180 
University of Florida Reasearch Foundation Inc.,         
 Capital Improvement Revenue Bonds,         
 5.125%, 9/01/33 (e)    4,000    4,017,240 
       
        25,021,964 

 
 
Georgia — 3.1%         
Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station         
 Project), 7.90%, 12/01/11 (a)    1,500    1,765,065 
Atlanta, Georgia, Water and Wastewater Revenue         
 Bonds, VRDN, Series C, 1.25%, 11/01/41 (b)(d)    3,110    3,110,000 
Brunswick and Glynn County, Georgia, Development         
 Authority, First Mortgage Revenue Bonds (Coastal         
 Community Retirement Corporation Project),         
 Series A (j)(k):         
     7.125%, 1/01/25    5,395    3,620,045 
     7.25%, 1/01/35    2,800    1,878,800 
Metropolitan Atlanta Rapid Transit Authority, Georgia,         
 Sales Tax Revenue Bonds, VRDN, Series A,         
 1.50%, 7/01/25 (b)    6,720    6,720,000 
       
        17,093,910 

 
 

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
Idaho — 0.8%             
Boise City, Idaho, COP, AMT, 5.50%, 9/01/25 (h)    $ 4,000     $4,013,880 
Idaho Housing and Finance Association, S/F Mortgage         
 Revenue Bonds, AMT, Series F-2, 5.85%, 7/01/15 (l)    290    296,948 
       
            4,310,828 

 
 
 
Illinois — 6.1%             
Chicago, Illinois, Midway Airport Revenue             
 Bonds, Second Lien, VRDN, AMT (b)(c):             
     Series A, 1.40%, 1/01/29        1,700    1,700,000 
     Series B, 1.75%, 1/01/29        700    700,000 
Chicago, Illinois, O'Hare International Airport Revenue         
 Bonds, Third Lien, AMT, Series B-2, 6%, 1/01/29 (m)    2,510    2,596,319 
Chicago, Illinois, O'Hare International Airport Revenue         
 Refunding Bonds, 3rd Lien, AMT, Series A-2,             
 5.75%, 1/01/19 (d)        2,550    2,669,901 
Du Page and Will Counties, Illinois, Community             
 School District Number 204 (Indian Prairie), GO,             
 5.25%, 12/30/22 (h)        8,650    9,282,401 
Hodgkins, Illinois, Environmental Improvement             
 Revenue Bonds (Metro Biosolids Management LLC             
 Project), AMT, 5.90%, 11/01/17        6,000    6,014,880 
Illinois, Development Finance Authority Revenue Bonds         
 (Community Rehabilitation Providers Facilities),             
 Series A, 6.625%, 7/01/32        6,930    7,224,386 
Illinois State Finance Authority Revenue Bonds             
 (Landing At Plymouth Place Project), Series A,             
 6%, 5/15/25        1,800    1,710,036 
Village of Wheeling, Illinois, Revenue Bonds (North             
 Milwaukee/Lake-Cook Tax Increment Financing             
 Redevelopment Project), 6%, 1/01/25        1,580    1,447,975 
           
            33,345,898 

 
 
 
Louisiana — 2.6%             
Louisiana Public Facilities Authority Revenue Bonds:             
(Nineteenth Judicial District Court Building Project),         
     5.50%, 6/01/41 (h)        2,000    2,013,540 
     (University of New Orleans Research and Technology         
     Foundation, Inc. — Student Housing Project),             
     5.25%, 3/01/26 (c)        6,965    7,249,172 
Port New Orleans, Louisiana, IDR, Refunding             
 (Continental Grain Company Project),             
 6.50%, 1/01/17        5,000    5,002,050 
           
            14,264,762 

 
 
 
Maine — 0.4%             
Portland, Maine, Housing Development Corporation,             
 Senior Living Revenue Bonds (Avesta Housing             
 Development Corporation Project), Series A,             
 6%, 2/01/34        1,965    1,931,968 

 
 
 

See Notes to Financial Statements.

8 ANNUAL REPORT

MAY 31, 2008


Schedule of Investments (continued) BlackRock Muni Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Maryland — 0.1%         
Maryland State Industrial Development Financing         
 Authority, EDR (Our Lady of Good Counsel School),         
 Series A, 6%, 5/01/35    $ 500    $ 500,250 

 
 
Massachusetts — 1.5%         
Massachusetts Bay Transportation Authority, Sales         
 Tax Revenue Refunding Bonds, Senior Series A,         
 5%, 7/01/12 (a)    4,560    4,915,452 
Massachusetts State Development Finance Agency,         
 Resource Recovery Revenue Bonds (Ogden Haverhill         
 Associates), AMT, Series B:         
     5.35%, 12/01/15    1,210    1,187,325 
     5.50%, 12/01/19    2,000    1,976,700 
       
        8,079,477 

 
 
Michigan — 1.8%         
Detroit, Michigan, Sewer Disposal Revenue Bonds,         
 Senior Lien, VRDN, Series B, 1.25%, 7/01/33 (b)(d)    500    500,000 
Kalamazoo, Michigan, Hospital Finance Authority,         
 Hospital Facility Revenue Bonds (Bronson Methodist         
 Hospital), VRDN, 1.51%, 5/15/36 (b)(d)    2,000    2,000,000 
Macomb County, Michigan, Hospital Finance Authority,         
 Hospital Revenue Bonds (Mount Clemens General         
 Hospital), Series B, 5.875%, 11/15/34    2,325    2,182,291 
Michigan State Hospital Finance Authority, Revenue         
 Refunding Bonds (Oakwood Obligated Group),         
 Series A, 6%, 4/01/22    4,795    4,983,731 
       
        9,666,022 

 
 
Minnesota — 1.0%         
Minneapolis and Saint Paul, Minnesota, Housing and         
 Redevelopment Authority, Health Care System         
 Revenue Bonds (Group Health Plan Inc. Project):         
     6%, 12/01/19    1,000    1,040,280 
     6%, 12/01/21    2,545    2,642,575 
Minnesota State Municipal Power Agency, Electric         
 Revenue Bonds, Series A, 5.25%, 10/01/24    2,000    2,060,640 
       
        5,743,495 

 
 
Mississippi — 1.4%         
Mississippi Business Finance Corporation, Mississippi,         
 PCR, Refunding (System Energy Resources         
 Inc. Project):         
     5.875%, 4/01/22    5,000    4,964,050 
     5.90%, 5/01/22    2,910    2,882,617 
       
        7,846,667 

 
 
Missouri — 2.6%         
Missouri State Health and Educational Facilities         
 Authority, Health Facilities Revenue Bonds         
 (Sisters of Mercy Health System), VRDN, Series A,         
 0.85%, 6/01/16 (b)    14,500    14,500,000 

 
 
Nebraska — 1.8%         
Public Power Generation Agency, Nebraska, Revenue         
 Bonds (Whelan Energy Center Unit 2), Series A,         
 5%, 1/01/37 (e)    10,000    9,969,400 

 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Nevada — 0.4%         
Clark County, Nevada, Improvement District         
 Number 142, Special Assessment Bonds,         
 6.375%, 8/01/23    $ 2,215    $ 2,111,427 

 
 
New Jersey — 12.5%         
Garden State Preservation Trust of New Jersey, Open         
 Space and Farmland Preservation Revenue Bonds,         
 Series A (d):         
     5.80%, 11/01/21    3,635    4,110,930 
     5.80%, 11/01/23    5,050    5,677,967 
New Jersey EDA, Cigarette Tax Revenue Bonds,         
 5.75%, 6/15/29    9,810    9,622,040 
New Jersey EDA, Motor Vehicle Surcharge Revenue         
 Bonds, Series A, 5.25%, 7/01/33 (c)    17,900    18,456,869 
New Jersey EDA, Special Facility Revenue         
 Bonds (Continental Airlines Inc. Project), AMT,         
 6.625%, 9/15/12    5,540    5,255,466 
New Jersey EDA, Water Facilities Revenue Refunding         
 Bonds (American Water), AMT, Series B,         
 5.125%, 4/01/22 (e)    5,000    4,992,300 
New Jersey State Housing and Mortgage Finance         
 Agency, S/F Housing Revenue Bonds, AMT,         
 Series X, 5.10%, 10/01/23    4,500    4,472,730 
New Jersey State Transportation Trust Fund Authority,         
 Transportation System Revenue Bonds, Series D:         
     5%, 6/15/18 (e)    4,215    4,519,997 
     5%, 6/15/19 (d)    11,120    11,818,447 
       
        68,926,746 

 
 
New Mexico — 1.9%         
New Mexico Finance Authority, Senior Lien         
 State Transportation Revenue Bonds, Series A,         
 5.125%, 6/15/18 (c)    9,520    10,164,314 

 
 
New York — 24.6%         
Dutchess County, New York, IDA, Civic Facility         
 Revenue Bonds (Saint Francis Hospital), Series B,         
 7.25%, 3/01/19    1,030    1,084,950 
Metropolitan Transportation Authority, New         
 York, Revenue Refunding Bonds, Series A,         
 5%, 11/15/25 (h)    4,100    4,139,032 
New York City, New York, City IDA, Special Facility         
 Revenue Bonds (Continental Airlines Inc. Project),         
 AMT, 8.375%, 11/01/16    3,500    3,492,300 
New York City, New York, City Transitional Finance         
 Authority, Building Aid Revenue Bonds, Series S-1,         
 5%, 7/15/24 (h)    2,500    2,608,400 
New York City, New York, GO:         
     Series D1, 5.125%, 12/01/26    4,615    4,814,276 
     Sub-Series F-1, 5%, 9/01/22 (m)    1,775    1,830,380 
New York City, New York, GO, Refunding, Series B,         
 5.75%, 8/01/15    5,000    5,447,250 
New York City, New York, IDA, Civic Facility Revenue         
 Bonds (Special Needs Facilities Pooled Program),         
 Series C-1, 6.80%, 7/01/19    2,055    2,072,488 
New York City, New York, Sales Tax Asset         
 Receivable Corporation Revenue Bonds, Series A,         
 5%, 10/15/20 (c)    9,070    9,630,889 

See Notes to Financial Statements.

ANNUAL REPORT

MAY 31, 2008

9


Schedule of Investments (continued) BlackRock Muni Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
New York (concluded)         
New York State Dormitory Authority, Lease Revenue         
 Refunding Bonds (Court Facilities), Series A,         
 5.25%, 5/15/12    $ 5,580    $ 5,984,885 
New York State Dormitory Authority, Non-State         
 Supported Debt, Revenue Refunding Bonds (Mount         
 Sinai-NYU Medical Center Health System), Series A:         
     6.625%, 7/01/10 (a)    8,285    9,062,796 
     6.625%, 7/01/18    2,385    2,484,192 
     6.625%, 7/01/19    1,330    1,383,160 
New York State Dormitory Authority Revenue Bonds:         
     (North Shore — Long Island Jewish Health         
     System), 5%, 5/01/12    1,000    1,057,210 
     (School Districts Financing Program), Series D,         
     5.25%, 10/01/23 (c)    9,540    10,079,869 
New York State Environmental Facilities Corporation,         
 State Personal Income Tax Revenue Bonds,         
 Series A, 5.25%, 12/15/14 (a)(h)    7,380    8,281,762 
New York State Thruway Authority, Local Highway and         
 Bridge Service Contract, Revenue Refunding Bonds,         
 5.50%, 4/01/17    60    64,589 
New York State Urban Development Corporation,         
 Correctional and Youth Facilities Services, Revenue         
 Refunding Bonds, Series A, 5.50%, 1/01/17    10,825    11,415,828 
New York State Urban Development Corporation,         
 Personal Income Tax Revenue Bonds (State         
 Facilities), Series A-1, 5.25%, 3/15/34 (h)    10,000    10,385,700 
Port Authority of New York and New Jersey, Senior         
 Consolidated Revenue Bonds, AMT, 131st Series,         
 5%, 12/15/17 (n)    5,000    5,146,900 
Tobacco Settlement Financing Corporation of New York         
 Revenue Bonds:         
     Series A-1, 5.25%, 6/01/22 (e)    6,510    6,765,518 
     Series C-1, 5.50%, 6/01/20 (h)    9,750    10,267,140 
     Series C-1, 5.50%, 6/01/21    7,000    7,355,250 
     Series C-1, 5.50%, 6/01/22    10,000    10,484,600 
       
        135,339,364 

 
 
North Carolina — 2.2%         
Gaston County, North Carolina, Industrial Facilities         
 and Pollution Control Financing Authority, Revenue         
 Bonds (National Gypsum Company Project), AMT,         
 5.75%, 8/01/35    3,105    2,466,488 
North Carolina Medical Care Commission, Health Care         
 Facilities, First Mortgage Revenue Refunding Bonds         
 (Presbyterian Homes Project), 7%, 10/01/10 (a)    6,000    6,666,780 
North Carolina Municipal Power Agency Number 1,         
 Catawba Electric Revenue Bonds, Series A,         
 5.25%, 1/01/20 (c)    2,700    2,810,187 
       
        11,943,455 

 
 
Ohio — 1.3%         
Buckeye Tobacco Settlement Financing Authority, Ohio,         
 Tobacco Settlement Asset-Backed Bonds, Series A-2,         
 6.50%, 6/01/47    4,820    4,499,229 
Port of Greater Cincinnati Development Authority,         
 Ohio, Special Assessment Revenue Bonds         
 (Cooperative Public Parking Infrastructure Project),         
 6.30%, 2/15/24    1,280    1,304,858 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Ohio (concluded)         
Trumbull County, Ohio, Health Care Facilities         
 Revenue Bonds (Shepherd of the Valley), VRDN,         
 5%, 10/01/31 (b)(o)    $ 1,600     $1,600,000 
   
 
        7,404,087 

 
 
Pennsylvania — 9.0%         
Montgomery County, Pennsylvania, IDA, Revenue         
 Bonds (Whitemarsh Continuing Care Project),         
 6%, 2/01/21    3,500    3,335,605 
Pennsylvania Economic Development Financing         
 Authority, Exempt Facilities Revenue Bonds (National         
 Gypsum Company), AMT, Series A, 6.25%, 11/01/27    7,710    6,731,986 
Philadelphia, Pennsylvania, Airport Revenue Bonds         
 (Philadelphia Airport System), AMT, Series A,         
 5%, 6/15/20 (d)    2,895    2,920,100 
Philadelphia, Pennsylvania, Airport Revenue Refunding         
 Bonds (Philadelphia Airport System), AMT, Series B,         
 5%, 6/15/19 (d)    3,905    3,955,921 
Philadelphia, Pennsylvania, Gas Works Revenue         
 Refunding Bonds, 1975 General Ordinance, 17th         
 Series, 5.375%, 7/01/22 (d)    7,490    7,977,150 
Pittsburgh, Pennsylvania, GO, Refunding, Series B,         
 5.25%, 9/01/17 (d)    9,630    10,627,186 
Pittsburgh, Pennsylvania, GO, Series C,         
 5.25%, 9/01/18 (d)    6,430    7,033,777 
Sayre, Pennsylvania, Health Care Facilities Authority,         
 Revenue Refunding Bonds (Guthrie Healthcare         
 System), Series A:         
     6.25%, 12/01/11 (a)    4,615    5,157,678 
     6.25%, 12/01/15    455    488,716 
     6.25%, 12/01/16    785    839,196 
     6.25%, 12/01/18    385    407,850 
       
        49,475,165 

 
 
South Carolina — 2.3%         
Georgetown County, South Carolina, Pollution         
 Control Facilities, Revenue Refunding Bonds         
 (International Paper Company Project), Series A,         
 5.125%, 2/01/12    8,000    8,071,280 
Medical University Hospital Authority, South Carolina,         
 Hospital Facilities Revenue Refunding Bonds,         
 Series A, 5.25%, 8/15/23 (c)(l)    4,250    4,411,372 
       
        12,482,652 

 
 
South Dakota — 0.4%         
Educational Enhancement Funding Corporation,         
 South Dakota, Series B, 6.50%, 6/01/32    2,200    2,200,924 

 
 
Tennessee — 3.7%         
Blount County, Tennessee, Public Building Authority,         
 Local Government Public Improvement Revenue         
 Bonds, VRDN, Series A-1-E, 3%, 6/01/22 (b)(e)    850    850,000 
Johnson City, Tennessee, Health and Educational         
 Facilities Board, Retirement Facility Revenue Bonds         
 (Appalachian Christian Village Project), Series A,         
 6%, 2/15/19    1,800    1,744,596 
Memphis-Shelby County, Tennessee, Airport         
 Authority, Airport Revenue Bonds, AMT, Series A,         
 5.50%, 3/01/17 (d)    2,005    2,074,072 

See Notes to Financial Statements.

10 ANNUAL REPORT

MAY 31, 2008


Schedule of Investments (continued) BlackRock Muni Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Tennessee (concluded)         
Shelby County, Tennessee, Health, Educational &         
 Housing Facilities Board Revenue Bonds         
 (Germantown Village), Series A:         
     6.75%, 12/01/18    $ 3,550     $3,351,449 
     7%, 12/01/23    1,450    1,400,903 
Shelby County, Tennessee, Health, Educational         
 and Housing Facility Board, Hospital Revenue         
 Refunding Bonds (Methodist Healthcare):         
     6%, 9/01/12 (a)    6,000    6,716,640 
     6.25%, 9/01/12    3,500    3,952,726 
       
        20,090,386 

 
 
Texas — 15.5%         
Austin, Texas, Convention Center Revenue Bonds         
 (Convention Enterprises Inc.), First Tier, Series A (a):         
     6.375%, 1/01/11    5,945    6,442,061 
     6.70%, 1/01/11    10,260    11,243,113 
Bell County, Texas, Health Facilities Development         
 Corporation, Hospital Revenue Bonds (Scott &         
 White Memorial Hospital), VRDN, Series B-2,         
 1.70%, 8/15/29 (b)(c)    800    800,000 
Bexar County, Texas, Health Facilities Development         
 Corporation, Revenue Refunding Bonds (Army         
 Retirement Residence Project), 6.30%, 7/01/12 (a)    1,500    1,699,785 
Brazos River Authority, Texas, PCR, Refunding         
 (TXU Energy Company Project), AMT, Series C,         
 5.75%, 5/01/36    7,000    6,706,000 
Dallas-Fort Worth, Texas, International Airport Facility         
 Improvement Corporation, Revenue Bonds (Learjet         
 Inc.), AMT, Series A-1, 6.15%, 1/01/16    4,000    3,820,280 
Dallas-Fort Worth, Texas, International Airport Facility         
 Improvement Corporation, Revenue Refunding         
 Bonds, AMT, Series A-2, 9%, 5/01/29    5,000    4,510,050 
Dallas-Fort Worth, Texas, International Airport, Joint         
 Revenue Refunding Bonds, AMT, Sub-Series A-2,         
 6.10%, 11/01/24 (c)    1,500    1,520,805 
Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue         
 Bonds (Citgo Petroleum Corporation Project), AMT,         
 7.50%, 5/01/25    2,440    2,569,198 
Gulf Coast Waste Disposal Authority, Texas, Revenue         
 Refunding Bonds (International Paper Company),         
 AMT, Series A, 6.10%, 8/01/24    2,000    1,961,560 
Harris County, Texas, Health Facilities Development         
 Corporation, Hospital Revenue Bonds (Texas         
 Children’s Hospital), VRDN, Series B-1,         
 1.85%, 10/01/29 (b)(c)    8,500    8,500,000 
Houston, Texas, Airport System Revenue Refunding         
 Bonds, Sub-Lien, AMT, Series A, 5.50%, 7/01/23 (d)    5,790    5,890,862 
Houston, Texas, Health Facilities Development         
 Corporation, Retirement Facility Revenue Bonds         
 (Buckingham Senior Living Community), Series A,         
 7%, 2/15/14 (a)    1,500    1,801,125 
Lower Colorado River Authority, Texas, PCR (Samsung         
 Austin Semiconductor), AMT, 6.95%, 4/01/30    7,420    7,670,573 
Sabine River Authority, Texas, PCR, Refunding         
 (TXU Electric Company Project/TXU Energy         
 Company LLC), AMT, Series B, 5.75%, 5/01/30    5,000    4,790,000 
Sheldon, Texas, Independent School District, GO,         
 5%, 2/15/33    1,460    1,494,047 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Texas (concluded)         
Tarrant County, Texas, Health Facilities Development         
 Corporation, Hospital Revenue Refunding Bonds         
 (Cumberland Rest, Inc. Project), VRDN, Series,         
 6.70%, 8/15/32 (b)(o)    $ 700     $700,000 
Texas State Affordable Housing Corporation,         
 S/F Mortgage Revenue Bonds (Professional         
 Educators Home Loan Program), AMT (f)(g):         
     Series A-3, 5.60%, 2/01/39    7,935    7,881,361 
     Series B, 5.95%, 12/01/39    4,988    5,056,585 
       
        85,057,405 

 
 
Virginia — 5.7%         
James City County, Virginia, IDA, Residential Care         
 Facility Revenue Refunding Bonds, Series A:         
     5.75%, 3/01/17    3,285    3,324,091 
     6%, 3/01/23    1,150    1,153,162 
Pocahontas Parkway Association, Virginia,         
 Toll Road Revenue Bonds, Senior Series A,         
 5.50%, 8/15/08 (a)    10,735    11,028,388 
Roanoke, Virginia, IDA, Hospital Revenue Refunding         
 Bonds (Carilion Health System), VRDN, Series C-2,         
 1.15%, 7/01/27 (b)(d)    7,150    7,150,000 
Tobacco Settlement Financing Corporation         
 of Virginia, Asset-Backed Revenue Bonds,         
 5.625%, 6/01/15 (a)    7,800    8,735,688 
       
        31,391,329 

 
 
Washington — 2.1%         
Port Bellingham, Washington, Industrial Development         
 Corporation, Environmental Facilities Revenue         
 Bonds (BP West Coast Products LLC Project),         
 VRDN, AMT, 1.15%, 7/01/40 (b)    800    800,000 
Snohomish County, Washington, School District         
 Number 015 (Edmonds), GO, 5%, 12/01/19 (h)    10,000    10,645,200 
       
        11,445,200 

 
 
Guam — 0.9%         
Commonwealth of the Northern Mariana Islands, Guam,         
 GO, Series A:         
     6.75%, 10/01/13 (a)    4,000    4,611,160 
     6.75%, 10/01/33    250    256,025 
       
        4,867,185 

 
 
Puerto Rico — 9.0%         
Puerto Rico Commonwealth Aqueduct and Sewer         
 Authority, Senior Lien Revenue Bonds, Series A,         
 5%, 7/01/25 (p)    3,215    3,328,232 
Puerto Rico Commonwealth Highway and         
 Transportation Authority, Subordinate Transportation         
 Revenue Bonds, 5.75%, 7/01/21 (h)    4,375    4,537,444 
Puerto Rico Electric Power Authority, Power Revenue         
 Bonds, Series NN, 5.50%, 7/01/13 (a)    17,935    19,945,514 
Puerto Rico Industrial, Medical and Environmental         
 Pollution Control Facilities Financing Authority,         
 Special Facilities Revenue Bonds (American         
 Airlines Inc.), Series A, 6.45%, 12/01/25    5,390    3,638,520 

  See Notes to Financial Statements.

ANNUAL REPORT

MAY 31, 2008

11


Schedule of Investments (concluded) BlackRock Muni Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Puerto Rico (concluded)         
Puerto Rico Public Buildings Authority, Government         
 Facilities Revenue Refunding Bonds:         
Series D, 5.25%, 7/01/27    $ 5,170     $5,157,385 
Series I, 5.50%, 7/01/14 (q)    8,000    8,837,680 
Puerto Rico Public Finance Corporation,         
 Commonwealth Appropriation Revenue Bonds,         
 Series E, 5.50%, 2/01/12 (q)    3,535    3,795,565 
       
        49,240,340 

 
 
U.S. Virgin Islands — 1.6%         
Virgin Islands Government Refinery Facilities, Revenue         
 Refunding Bonds (Hovensa Coker Project), AMT,         
 6.50%, 7/01/21    1,860    1,908,639 
Virgin Islands Public Finance Authority, Refinery         
 Facilities Revenue Bonds (Hovensa Refinery), AMT,         
 6.125%, 7/01/22    6,750    6,743,250 
       
        8,651,889 

 
 
Total Municipal Bonds         
(Cost — $808,613,795) — 148.6%        816,216,714 

 
 
 
 
Municipal Bonds Transferred to         
Tender Option Bond Trusts (r)         

 
 
California — 5.2%         
Peralta, California, Community College District, GO         
 (Election of 2000), Series D, 5%, 8/01/30 (d)    10,135    10,440,854 
San Jose, California, GO (Libraries, Parks and Public         
 Safety Projects), 5%, 9/1/30 (c)    3,100    3,167,969 
Sequoia, California, Unified High School District, GO,         
 Refunding, Series B, 5.50%, 7/01/35 (d)    9,030    9,667,608 
Tamalpais, California, Union High School District, GO         
 (Election of 2001), 5%, 8/01/28 (d)    4,875    5,037,679 
       
        28,314,110 

 
 
Illinois — 2.4%         
McHenry County, Illinois, Community Consolidated         
 School District Number 047, Crystal Lake, GO,         
 Refunding, 5.125%, 2/1/27 (d)    12,695    13,288,705 

 
 
Massachusetts — 1.6%         
Massachusetts State School Building Authority,         
 Dedicated Sales Tax Revenue Bonds, Series A,         
 5%, 8/15/30 (d)    8,325    8,562,761 

 
 
New York — 2.1%         
New York City, New York, Sales Tax Asset Receivable         
 Corporation Revenue Bonds, Series A,         
 5.25%, 10/15/27 (e)    11,100    11,644,122 

 
 
Texas — 6.0%         
Harris County, Texas, Toll Road Revenue Refunding         
 Bonds, Senior Lien, Series A, 5.25%, 8/15/35 (d)    31,240    33,164,072 

 
 
Total Municipal Bonds Transferred to Tender Option         
Bond Trusts (Cost — $95,220,605) — 17.3%        94,973,770 

 
 
Total Investments (Cost — $903,834,400*) — 165.9%        911,190,484 
Other Assets Less Liabilities — 2.3%        12,623,125 
Liability for Trust Certificates, Including         
   Interest Expense and Fees Payable — (9.9%)        (54,171,741) 
Preferred Stock, at Redemption Value — (58.3%)        (320,226,428) 
   
 
Net Assets Applicable to Common Stock — 100.0%    $ 549,415,440 
   

* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 848,761,409 
   
Gross unrealized appreciation    $ 22,894,389 
Gross unrealized depreciation    (14,450,314) 
   
Net unrealized appreciation    $ 8,444,075 
   

(a) 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.
(b) Variable rate security. Rate shown is as of report date. Maturity shown is the final
maturity date.
(c) MBIA Insured.
(d) FSA Insured.
(e) AMBAC Insured.
(f) FHLMC Collateralized.
(g) FNMA/GNMA Collateralized.
(h) FGIC Insured.
(i) Illiquid security.
(j) Non-income producing security.
(k) Issuer filed for bankruptcy or is in default of interest payments.
(l) FHA Insured.
(m) XL Capital Insured.
(n) CIFG Insured.
(o) Radian Insured.
(p) Assured Guarantee Insured.
(q) Commonwealth Guaranteed.
(r) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of the
Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.

  See Notes to Financial Statements.

  12 ANNUAL REPORT MAY 31, 2008


Schedule of Investments May 31, 2008 BlackRock Muni New York Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

        Par     
Municipal Bonds        (000)             Value 

 
 
 
 
     New York — 128.8%             

 
 
 
 
Albany, New York, IDA, Civic Facility Revenue             
 Refunding Bonds (Albany College of Pharmacy             
 Project), Series A, 5.25%, 12/01/19    $ 760    $ 757,401 

 
 
Cattaraugus County, New York, IDA, Civic Facility             
 Revenue Bonds (Saint Bonaventure University             
 Project), Series A:             
     4.90%, 5/01/16        695    695,243 
     5%, 5/01/23        500    472,320 

 
 
 
Dutchess County, New York, IDA, Civic Facility             
 Revenue Bonds (Saint Francis Hospital), Series B,         
 7.25%, 3/01/19        410    431,873 

 
 
 
Dutchess County, New York, IDA, Civic Facility Revenue         
 Refunding Bonds (Bard College), Series A-1,             
 5%, 8/01/22        750    774,457 

 
 
 
Erie County, New York, IDA, Life Care Community             
 Revenue Bonds (Episcopal Church Home), Series A,         
 5.875%, 2/01/18        2,000    1,967,300 

 
 
 
Genesee County, New York, IDA, Civic Facility Revenue         
 Refunding Bonds (United Memorial Medical Center         
 Project), 4.75%, 12/01/14        445    417,690 

 
 
 
Long Island Power Authority, New York, Electric             
 System Revenue Refunding Bonds, Series D,             
 5%, 9/01/25 (a)        5,000    5,159,950 

 
 
 
Metropolitan Transportation Authority, New York,             
 Revenue Refunding Bonds, Series A,             
 5%, 11/15/25 (b)        3,500    3,533,320 

 
 
 
Metropolitan Transportation Authority, New York,             
 Transportation Revenue Refunding Bonds, Series F,         
 5%, 11/15/35        500    503,080 

 
 
 
New York City, New York, City Housing Development             
 Corporation, M/F Housing Revenue Bonds, AMT:             
     Series B-1, 5.05%, 11/01/22        750    742,628 
     Series J-2, 4.75%, 11/01/27        1,000    931,470 

 
 
 
New York City, New York, City Housing Development             
 Corporation, Presidential Revenue Bonds (The             
 Animal Medical Center), Series A, 5.50%, 12/01/33    1,615    1,637,949 

 
 
New York City, New York, City IDA, Civic Facility Revenue         
 Bonds (PSCH Inc. Project), 6.20%, 7/01/20        1,415    1,416,825 

 
 
 
New York City, New York, City IDA, PILOT Revenue Bonds:         
     (Queens Baseball Stadium Project),             
     5%, 1/01/31 (c)        2,000    2,009,620 
     (Yankee Stadium Project), 5%, 3/01/31 (b)        2,400    2,358,192 

 
 
 
New York City, New York, City IDA, Special Facility             
 Revenue Bonds, AMT:             
     (1990 American Airlines Inc. Project),             
     5.40%, 7/01/20        1,500    941,190 
     (British Airways Plc Project), 7.625%, 12/01/32    1,000    933,700 
     (Continental Airlines Inc. Project),             
     8.375%, 11/01/16        1,000    997,800 

 
 
 
New York City, New York, City IDA, Special Facility             
 Revenue Refunding Bonds (Terminal One Group             
 Association Project), AMT, 5.50%, 1/01/24        1,000    1,017,930 

 
 
 

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
     New York (continued)             

 
 
 
 
New York City, New York, City Transitional Finance             
 Authority, Building Aid Revenue Bonds, Series S-1,         
 5%, 7/15/24 (b)    $ 1,000    $ 1,043,360 

 
 
New York City, New York, GO:             
     Series J, 5.50%, 6/01/13 (d)        2,710    3,018,290 
     Series D1, 5.125%, 12/01/23        1,500    1,574,205 
     Series J, 5.25%, 5/15/18 (a)        1,500    1,622,445 
     Series J, 5.50%, 6/01/21        290    305,329 

 
 
 
New York City, New York, GO, Sub-Series F-1:             
     5%, 9/01/22 (e)        1,000    1,031,200 
     5%, 9/01/26        1,775    1,822,641 

 
 
 
New York City, New York, IDA, Civic Facility Revenue             
 Bonds (Lycee Francais de New York Project),             
 Series A, 5.50%, 6/01/15 (f)        500    505,555 

 
 
 
New York City, New York, IDA, Civic Facility Revenue             
 Refunding Bonds (Polytechnic University),             
 4.70%, 11/01/22 (f)        1,000    920,650 

 
 
 
New York City, New York, Trust for Cultural Resources         
 Revenue Bonds (Museum of American Folk Art),             
 6.125%, 7/01/30 (g)        500    474,780 

 
 
 
New York State Dormitory Authority, Non-State Supported         
 Debt, Revenue Bonds:             
     (New York University Hospitals Center), Series B,         
     5.25%, 7/01/24        500    484,410 
     (Royal Charter Properties — East), VRDN, Series A,         
     1.60%, 11/15/36 (h)(i)        1,400    1,400,000 
     (Saint Johns University), Series A, 5%, 7/01/27 (a)    850    876,257 

 
 
New York State Dormitory Authority Revenue Bonds:         
     (North Shore — Long Island Jewish Health System),         
     5%, 5/01/13        1,500    1,595,955 
     (Winthrop S. Nassau University), 5.50%, 7/01/11    1,735    1,820,067 

 
 
New York State Dormitory Authority, Revenue             
 Refunding Bonds:             
     (Lenox Hill Hospital Obligation Group),             
     5.75%, 7/01/17        1,305    1,327,211 
     (State University Educational Facilities), Series A,         
     5.50%, 5/15/13        1,000    1,081,850 

 
 
 
New York State Dormitory Authority, Revenue Refunding         
 Bonds Series A:             
     (Mount Sinai-NYU Medical Center Health System),         
     6.50%, 7/01/10 (d)        330    360,146 
     (Mount Sinai-NYU Medical Center Health System),         
     6.625%, 7/01/10 (d)        660    721,961 
     (Mount Sinai-NYU Medical Center Health System),         
     6.625%, 7/01/18        340    354,141 
     (New York University Hospital Center), 5%, 7/01/16    1,130    1,125,491 

 
 
New York State Dormitory Authority, State Personal             
 Income Tax Revenue Bonds (Education), Series F,         
 5%, 3/15/30        1,790    1,840,693 

 
 
 
New York State Dormitory Authority, Supported Debt         
 Revenue Refunding Bonds (Department of Health),         
 Series A, 5%, 7/01/25 (j)        1,500    1,540,440 

 
 
 
New York State Energy Research and Development             
 Authority, Gas Facilities Revenue Refunding Bonds         
 (Brooklyn Union Gas Company/Keyspan), AMT,             
 Series A, 4.70%, 2/01/24 (b)        2,000    1,866,740 

 
 
 

See Notes to Financial Statements.

ANNUAL REPORT

MAY 31, 2008

13


Schedule of Investments (continued) BlackRock Muni New York Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)             Value 

 
 
 
     New York (continued)         

 
 
 
New York State, HFA, M/F Housing Revenue Bonds         
 (Kensico Terrace Apartments), AMT, Series A,         
 4.75%, 8/15/26    $ 1,185    $ 1,117,313 

 
 
New York State Mortgage Agency, Homeowner         
 Mortgage Revenue Bonds, AMT:         
     Series 130, 4.75%, 10/01/30    2,635    2,433,396 
     Series 143, 4.85%, 10/01/27    500    474,690 

 
 
New York State Mortgage Agency, Homeowner         
 Mortgage Revenue Refunding Bonds, AMT:         
     Series 133, 4.95%, 10/01/21    1,000    988,210 
     Series 137, 4.70%, 10/01/31    1,000    911,890 
     Series 140, 4.65%, 10/01/26    500    463,250 

 
 
New York State Municipal Bond Bank Agency,         
 Special School Purpose Revenue Bonds, Series C,         
 5.25%, 12/01/18    2,000    2,126,320 

 
 
New York State Thruway Authority, Second General         
 Highway and Bridge Trust Fund Revenue Bonds,         
 Series A, 5%, 4/01/22    1,000    1,054,260 

 
 
New York State Urban Development Corporation         
 Revenue Bonds, Subordinate Lien, Corporation         
 Purpose, Series A, 5.125%, 7/01/19    2,000    2,109,360 

 
 
Saratoga County, New York, IDA, Civic Facility         
 Revenue Bonds (The Saratoga Hospital Project)         
 Series B, 5%, 12/01/22    500    492,400 

 
 
Saratoga County, New York, IDA, Civic Facility         
 Revenue Refunding Bonds (The Saratoga Hospital         
 Project), Series A (g):         
     4.375%, 12/01/13    365    370,745 
     4.50%, 12/01/14    380    386,202 
     4.50%, 12/01/15    395    398,930 

 
 
Schenectady, New York, IDA, Civic Facility Revenue         
 Refunding Bonds (Union College Project),         
 5%, 7/01/26    1,000    1,034,220 

 
 
Suffolk County, New York, IDA, Continuing Care and         
 Retirement, Revenue Refunding Bonds (Jeffersons         
 Ferry Project), 4.625%, 11/01/16    800    780,360 

 
 
Tobacco Settlement Financing Corporation of New         
 York Revenue Bonds, Series C-1, 5.50%, 6/01/22    1,000    1,048,460 

 
 
Tompkins County, New York, IDA, Care Community         
 Revenue Refunding Bonds (Kendal at Ithaca),         
 Series A-2:         
     5.75%, 7/01/18    250    250,160 
     6%, 7/01/24    1,000    1,000,610 

 
 
Triborough Bridge and Tunnel Authority, New York,         
 Revenue Bonds, Series A, 5%, 11/15/31    1,000    1,031,280 

 
 
Westchester County, New York, IDA, Civic Facility         
 Revenue Bonds (Special Needs Facilities Pooled         
 Program), Series D-1, 6.80%, 7/01/19    515    516,818 

 
 
Yonkers, New York, IDA, Revenue Bonds (Sacred         
 Heart Associates, LP Project), AMT, Series A,         
 4.80%, 10/01/26    750    713,400 
       
        76,116,029 

 
 

        Par     
Municipal Bonds        (000)             Value 

 
 
 
 
     Guam — 3.4%             

 
 
 
 
A.B. Won Guam International Airport Authority,             
 General Revenue Refunding Bonds, AMT, Series C,         
 5.25%, 10/01/22 (a)    $ 1,000    $ 1,002,320 

 
 
Guam Government Waterworks Authority, Water and             
 Wastewater System, Revenue Refunding Bonds,             
 6%, 7/01/25        1,000    1,011,660 
           
            2,013,980 

 
 
 
 
     Puerto Rico — 10.3%             

 
 
 
 
Children’s Trust Fund Project of Puerto Rico,             
 Tobacco Settlement Revenue Refunding Bonds,             
 5.375%, 5/15/33        950    901,863 

 
 
 
Puerto Rico Commonwealth Aqueduct and Sewer             
 Authority, Senior Lien Revenue Bonds, Series A,             
 5%, 7/01/25 (k)        500    517,610 

 
 
 
Puerto Rico Commonwealth Highway and             
 Transportation Authority, Subordinate             
 Transportation Revenue Bonds, 5.75%, 7/01/21 (b)    2,000    2,074,260 

 
 
Puerto Rico Commonwealth, Public Improvement,             
 GO, Series A:             
     5.25%, 7/01/16 (d)        615    696,223 
     5.25%, 7/01/30        385    381,997 

 
 
 
Puerto Rico Industrial, Tourist, Educational, Medical             
 and Environmental Control Facilities Revenue Bonds         
 (University Plaza Project), Series A, 5%, 7/01/33 (a)    500    502,730 

 
 
Puerto Rico Municipal Finance Agency, GO, Series A,         
5.25%, 8/01/25        1,000    1,000,520 
           
            6,075,203 

 
 
 
 
     U.S. Virgin Islands — 3.3%             

 
 
 
 
Virgin Islands Government Refinery Facilities, Revenue         
 Refunding Bonds (Hovensa Coker Project), AMT,             
 6.50%, 7/01/21        500    513,075 

 
 
 
Virgin Islands Public Finance Authority, Refinery             
 Facilities Revenue Bonds (Hovensa Refinery),             
 AMT, 4.70%, 7/01/22        500    430,445 

 
 
 
Virgin Islands Public Finance Authority, Senior Lien             
 Revenue Bonds (Matching Fund Loan Note),             
 Series A, 5.25%, 10/01/24        1,000    991,270 
           
            1,934,790 

 
 
 
Total Municipal Bonds             
(Cost — $86,284,448) — 145.8%            86,140,002 

 
 
 

See Notes to Financial Statements.

14 ANNUAL REPORT

MAY 31, 2008


Schedule of Investments (concluded) BlackRock Muni New York Intermediate Duration Fund, Inc.
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to    Par     
Tender Option Bond Trusts (l)    (000)    Value 

 
 
     New York — 3.2%         

 
 
Erie County, New York, IDA, School Facility Revenue         
 Bonds (City of Buffalo Project), 5.75%, 5/01/24 (m)    $ 1,835    $ 1,917,188 

 
 
Total Municipal Bonds Transferred to Tender Option         
Bond Trusts (Cost — $1,889,105) — 3.2%        1,917,188 

 
 
 
 
 
Short-Term Securities    Shares     

 
 
CMA New York Municipal Money Fund, 1.17% (n)(o)    2,315,895    2,315,895 

 
 
Total Short-Term Securities (Cost — $2,315,895) — 3.9%    2,315,895 

 
Total Investments (Cost — $90,489,448*) — 152.9%        90,373,085 
Other Assets Less Liabilities — 1.9%        1,125,333 
Liability for Trust Certificates, Including         
Interest Expense and Fees Payable — (2.3%)        (1,380,252) 
Preferred Stock, at Redemption Value — (52.5%)        (31,017,601) 
       
Net Assets Applicable to Common Stock — 100.0%        $ 59,100,565 
   
 

  * The cost and unrealized appreciation (depreciation) of investments as of May 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate Cost    $ 89,037,521 
   
Gross unrealized appreciation    $ 1,395,092 
Gross unrealized depreciation    (1,439,528) 
   
Net unrealized depreciation    $ (44,436) 
   

  (a) MBIA Insured.
(b) FGIC Insured.
(c) AMBAC Insured.
(d) 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.
(e) XL Capital Insured.
(f) ACA Insured.
(g) Radian Insured.
(h) Variable rate security. Rate shown is as of report date. Maturity shown is the final
maturity date.
(i) FNMA Collateralized.
(j) CIFG Insured.
(k) Assured Guarantee Insured.
(l) Security represents bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of the
Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.

(m) FSA Insured.
(n) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net    Dividend 
     Affiliate    Activity    Income 

 
 
     CMA New York Municipal Money Fund    $1,335,647    $37,017 

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

Forward interest rate swaps outstanding as of May 31,2008 were as follows:

    Notional     
    Amount    Unrealized 
    (000)    Depreciation 

 
 
 
Pay a fixed rate of 3.984% and receive         
a floating rate based on 1-week         
SIFMA rate.         
Broker, JPMorgan Chase         
Expires June 2028    $3,000    $ (74,190) 

 
 

See Notes to Financial Statements.

ANNUAL REPORT

MAY 31, 2008

15


Statements of Assets and Liabilities         
    BlackRock    BlackRock 
    Muni    Muni New York 
    Intermediate    Intermediate 
    Duration    Duration 
May 31, 2008    Fund, Inc.    Fund, Inc. 

 
 
     Assets         

 
 
Investments at value — unaffiliated1    $ 911,190,484    $ 88,057,190 
Investments at value — affiliated2        2,315,895 
Cash    51,257    97,032 
Interest receivable    14,999,614    1,381,831 
Investments sold receivable    291,122     
Prepaid expenses    53,651    10,585 
Other assets    14,884     
Dividends receivable from affiliates    123     
   
 
Total assets    926,601,135    91,862,533 

 
 
 
     Accrued Liabilities         

 
 
Income dividends payable    2,320,131    222,941 
Investment advisory fees payable    304,284    30,748 
Interest expense and fees payable    186,741    252 
Unrealized depreciation on forward interest rate swaps        74,190 
Officer’s and Directors’ fees payable    16,724    100 
Other affiliates payable    6,554    655 
Accrued expenses    139,833    35,481 
   
 
Total accrued liabilities    2,974,267    364,367 

 
 
 
     Other Liabilities         

 
 
Trust certificates3    53,985,000    1,380,000 
   
 
Total Liabilities    56,959,267    1,744,367 

 
 
 
     Preferred Stock         

 
 
Preferred Stock, at redemption value, par value $0.10 per share4 at $25,000 per share liquidation preference    320,226,428    31,017,601 

 
 
 
     Net Assets Applicable to Common Stock         

 
 
Net assets applicable to Common Stock    $ 549,415,440    $ 59,100,565 

 
 
 
     Net Assets Applicable to Common Stock Shareholders Consist of         

 
 
Common Stock, par value $0.10 per share5    $ 3,803,493    $ 420,644 
Paid-in capital in excess of par    536,698,013    59,209,468 
Undistributed net investment income    3,452,820    411,737 
Accumulated net realized loss    (1,894,970)    (750,731) 
Net unrealized appreciation/depreciation    7,356,084    (190,553) 
   
 
Net Assets Applicable to Common Stock Shareholders    $ 549,415,440    $ 59,100,565 
   
 
Net asset value per share of Common Stock    $ 14.45    $ 14.05 
   
 
   1 Cost — unaffiliated    $ 903,834,400    $ 88,173,553 
   
 
   2 Cost — affiliated        $ 2,315,895 
   
 
   3 Represents short-term floating rate certificates issued by tender option bond trusts.         
   4 Preferred Stock authorized, issued and outstanding:         
           Series M7 Shares    2,000     
   
 
           Series T7 Shares    2,700     
   
 
           Series W7 Shares    2,000     
   
 
           Series TH7 Shares    2,700     
   
 
           Series F7 Shares    2,000    1,240 
   
 
           Series TH28 Shares    1,400     
   
 
   5 Common Stock issued and outstanding    38,034,934    4,206,439 
   
 
 
See Notes to Financial Statements.         
   
 

16 ANNUAL REPORT

MAY 31, 2008


Statements of Operations         
    BlackRock    BlackRock 
           Muni    Muni New York 
    Intermediate    Intermediate 
         Duration    Duration 
Year Ended May 31, 2008       Fund, Inc.    Fund, Inc. 

 
 
 
     Investment Income         

 
 
 
Interest    $ 45,410,403    $ 4,437,402 
Dividends from affiliates        37,017 
Income from affiliates    269     
   
 
Total income    45,410,672    4,474,419 

 
 
 
 
     Expenses         

 
 
 
Investment advisory    4,863,950    505,047 
Commissions for Preferred Stock    814,748    78,591 
Accounting services    226,158    26,041 
Professional    165,596    63,768 
Printing    56,577    4,782 
Transfer agent    44,553    20,142 
Custodian    44,603    8,383 
Officer and Directors    42,165    11,716 
Registration    13,270    13,107 
Miscellaneous    119,268    44,425 
   
 
Total expenses excluding interest expense and fees    6,390,888    776,002 
Interest expense and fees1    976,191    534 
   
 
Total expense    7,367,079    776,536 
Less fees waived by advisor    (1,326,562)    (144,307) 
Less fees paid indirectly    (111)    (197) 
   
 
Total expenses after waiver and fees paid indirectly    6,040,406    632,032 
   
 
Net investment income    39,370,266    3,842,387 

 
 
 
 
     Realized and Unrealized Gain (Loss)         

 
 
 
Net realized loss from:         
   Investments    (594,822)    (491,915) 
   Financial futures contracts and forward interest rate swaps    (400,021)    (124,655) 
   
 
    (994,843)    (616,570) 
   
 
Net change in unrealized appreciation/depreciation on:         
   Investments    (22,841,249)    (2,925,792) 
   Financial futures contracts and forward interest rate swaps    96,795    (76,011) 
   
 
    (22,744,454)    (3,001,803) 
   
 
Total realized and unrealized loss    (23,739,297)    (3,618,373) 

 
 
 
 
     Dividends to Preferred Stock Shareholders From         

 
 
 
Net investment income    (12,598,505)    (1,149,537) 
   
 
Net Increase (Decrease) in Net Assets Resulting from Operations    $ 3,032,464    $ (925,523) 
   
 
 
   1 Related to tender option bond trusts.         

See Notes to Financial Statements.

ANNUAL REPORT

MAY 31, 2008

17


Statements of Changes in Net Assets                 
 
    BlackRock Muni Intermediate    BlackRock Muni New York 
    Duration Fund, Inc.    Intermediate Duration Fund, Inc. 
   
 
    Year Ended May 31,    Year Ended May 31, 
   
 
Increase (Decrease) in Net Assets:    2008    2007           2008         2007 

 
 
 
 
     Operations                 

 
 
 
 
Net investment income    $ 39,370,266    $ 38,972,329    $ 3,842,387    $ 3,787,022 
Net realized gain (loss)    (994,843)    (139,587)    (616,570)    147,462 
Net change in unrealized appreciation/depreciation    (22,744,454)    7,090,554    (3,001,803)    842,327 
Dividends to Preferred Stock shareholders from net investment income    (12,598,505)    (11,909,306)    (1,149,537)    (1,046,683) 
   
 
 
 
Net increase (decrease) in net assets applicable to Common Stock shareholders                 
   resulting from operations    3,032,464    34,013,990    (925,523)    3,730,128 

 
 
 
 
 
     Dividends and Distributions to Common Stock Shareholders From                 

 
 
 
 
Net investment income    (27,841,571)    (28,297,991)    (2,675,295)    (2,700,534) 
Net realized gain        (4,525,473)         
   
 
 
 
Decrease in net assets resulting from dividends and distributions to Common                 
Stock shareholders    (27,841,571)    (32,823,464)    (2,675,295)    (2,700,534) 

 
 
 
 
 
     Net Assets Applicable to Common Stock Shareholders                 

 
 
 
 
Total increase (decrease) in net assets applicable to Common Stock    (24,809,107)    1,190,526    (3,600,818)    1,029,594 
Beginning of year    574,224,547    573,034,021    62,701,383    61,671,789 
   
 
 
 
End of year    $ 549,415,440    $ 574,224,547    $ 59,100,565    $ 62,701,383 
   
 
 
 
End of year undistributed net investment income    $ 3,452,820    $ 4,522,630    $ 411,737    $ 394,182 
   
 
 
 

See Notes to Financial Statements.

18 ANNUAL REPORT

MAY 31, 2008


Financial Highlights            BlackRock Muni Intermediate Duration Fund, Inc. 
 
                    Period 
                    August 1, 20031 
        Year Ended May 31,        to May 31, 
    2008    2007    2006    2005             2004 
     Per Share Operating Performance                     

 
 
 
 
 
Net asset value, beginning of period    $ 15.10    $ 15.07    $ 15.51    $ 14.52    $ 14.33 
   
 
 
 
 
Net investment income    1.042    1.032    1.042    1.022    0.79 
Net realized and unrealized gain (loss)    (0.63)    0.18    (0.15)    1.15    0.21 
Dividends and distributions to Preferred Stock shareholders from:                     
   Net investment income    (0.33)    (0.28)    (0.21)    (0.11)    (0.06) 
   Net realized gain        (0.04)    (0.04)    (0.02)     
   
 
 
 
 
Net increase from investment operations    0.08    0.89    0.64    2.04    0.94 
   
 
 
 
 
Dividends and distributions to Common Stock shareholders from:                     
   Net investment income    (0.73)    (0.74)    (0.84)    (0.86)    (0.65) 
   Net realized gain        (0.12)    (0.23)    (0.19)     
   
 
 
 
 
Total dividends and distributions to Common Stock shareholders    (0.73)    (0.86)    (1.07)    (1.05)    (0.65) 
   
 
 
 
 
Offering costs resulting from issuance of Common Stock                    (0.02) 
   
 
 
 
 
Offering and underwriting costs resulting from issuance of Preferred Stock            (0.01)        (0.08) 
   
 
 
 
 
Net asset value, end of period    $ 14.45    $ 15.10    $ 15.07    $ 15.51    $ 14.52 
   
 
 
 
 
Market price, end of period    $ 13.70    $ 14.85    $ 14.52    $ 13.94    $ 13.10 

 
 
 
 
 
 
     Total Investment Return3                     

 
 
 
 
 
Based on net asset value    0.86%    6.14%    4.71%    15.36%    6.09%4 
   
 
 
 
 
Based on market price    (2.76%)    8.34%    12.25%    14.93%    (8.59%)4 

 
 
 
 
 
 
     Ratios to Average Net Assets Applicable to Common Stock                     

 
 
 
 
 
Total expenses after waiver and excluding interest expense and fees5,6    0.90%    0.87%    0.87%    0.84%    0.75%7 
   
 
 
 
 
Total expenses after waiver5    1.07%    1.07%    1.00%    0.85%    0.75%7 
   
 
 
 
 
Total expenses after waiver and before fees paid indirectly5    1.07%    1.07%    1.00%    0.85%    0.75%7 
   
 
 
 
 
Total expenses5    1.30%    1.31%    1.24%    1.07%    1.03%7 
   
 
 
 
 
Net investment income5    6.97%    6.71%    6.82%    6.77%    6.51%7 
   
 
 
 
 
Dividends to Preferred Stock shareholders    2.23%    1.80%    1.36%    0.74%    0.48%7 
   
 
 
 
 
Net investment income to Common Stock shareholders    4.74%    4.91%    5.46%    6.03%    6.03%7 

 
 
 
 
 
 
     Supplemental Data                     

 
 
 
 
 
Net assets applicable to Common Stock, end of period (000)    $ 549,415    $ 574,225    $ 573,034    $ 589,802    $ 552,179 
   
 
 
 
 
Preferred Stock outstanding at liquidation preference, end of period (000)    $ 320,000    $ 320,000    $ 320,000    $ 285,000    $ 285,000 
   
 
 
 
 
Portfolio turnover    14%    12%    49%    54%    70% 
   
 
 
 
 
Asset coverage end of period (000)    $ 2,717    $ 2,794    $ 2,791    $ 3,069    $ 2,937 
   
 
 
 
 

1      Commencement of operations.
 
2      Based on average shares outstanding.
 
3      Total investment returns based on market value, which can be significantly greater or lesser than net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
 
4      Aggregate total investment return.
 
5      Do not reflect the effect of dividends to Preferred Stock shareholders.
 
6      Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
 
7      Annualized.
 

See Notes to Financial Statements.

ANNUAL REPORT

MAY 31, 2008

19


Financial Highlights (concluded)        BlackRock Muni New York Intermediate Duration Fund, Inc. 
 
                    Period 
                    August 1, 20031 
        Year Ended May 31,        to May 31, 
    2008                 2007    2006    2005             2004 
     Per Share Operating Performance                     

 
 
 
 
 
Net asset value, beginning of period    $ 14.91    $ 14.66    $ 15.05    $ 14.45    $ 14.33 
   
 
 
 
 
Net investment income    0.912    0.902    0.872    0.852    0.68 
Net realized and unrealized gain (loss)    (0.86)    0.24    (0.37)    0.58    0.19 
Dividends to Preferred Stock shareholders from net investment income    (0.27)    (0.25)    (0.20)    (0.11)    (0.06) 
   
 
 
 
 
Net increase (decrease) from investment operations    (0.22)    0.89    0.30    1.32    0.81 
   
 
 
 
 
Dividends to Common Stock shareholders from net                     
investment income    (0.64)    (0.64)    (0.69)    (0.72)    (0.54) 
   
 
 
 
 
Offering costs resulting from issuance of Common Stock                    (0.03) 
   
 
 
 
 
Offering and underwriting costs resulting from issuance of Preferred Stock                    (0.12) 
   
 
 
 
 
Net asset value, end of period    $ 14.05    $ 14.91    $ 14.66    $ 15.05    $ 14.45 
   
 
 
 
 
Market price, end of period    $ 12.81    $ 13.93    $ 13.03    $ 13.44    $ 12.79 

 
 
 
 
 
 
     Total Investment Return3                     

 
 
 
 
 
Based on net asset value    (1.10%)    6.57%    2.52%    9.99%    4.71%4 
   
 
 
 
 
Based on market price    (3.48%)    12.02%    2.03%    10.97%    (11.46%)4 

 
 
 
 
 
 
     Ratios to Average Net Assets of Common Stock                     

 
 
 
 
 
Total expenses after waiver and excluding interest expense and fees5,6    1.04%    1.08%    1.10%    1.15%    0.81%7 
   
 
 
 
 
Total expenses after waiver5    1.04%    1.08%    1.10%    1.15%    0.81%7 
   
 
 
 
 
Total expenses after waiver and before fees paid indirectly5    1.04%    1.08%    1.10%    1.15%    0.81%7 
   
 
 
 
 
Total expenses5    1.28%    1.31%    1.33%    1.38%    1.19%7 
   
 
 
 
 
Net investment income5    6.31%    6.01%    5.89%    5.75%    5.40%7 
   
 
 
 
 
Dividends to Preferred Stock shareholders    1.89%    1.66%    1.32%    0.77%    0.45%7 
   
 
 
 
 
Net investment income to Common Stock shareholders    4.42%    4.35%    4.57%    4.98%    4.95%7 

 
 
 
 
 
 
     Supplemental Data                     

 
 
 
 
 
Net assets applicable to Common Stock, end of period (000)    $ 59,101    $ 62,701    $ 61,672    $ 63,290    $ 60,778 
   
 
 
 
 
Preferred Stock outstanding at liquidation preference, end of period (000)    $ 31,000    $ 31,000    $ 31,000    $ 31,000    $ 31,000 
   
 
 
 
 
Portfolio turnover    21%    29%    49%    17%    21% 
   
 
 
 
 
Asset coverage end of period (000)    $ 2,906    $ 3,023    $ 2,989    $ 3,042    $ 2,961 
   
 
 
 
 

1      Commencement of operations.
 
2      Based on average shares outstanding.
 
3      Total investment returns based on market value, which can be significantly greater or lesser than net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
 
4      Aggregate total investment return.
 
5      Do not reflect the effect of dividends to Preferred Stock shareholders.
 
6      Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
 
7      Annualized.
 

See Notes to Financial Statements.

20 ANNUAL REPORT

MAY 31, 2008


Notes to Financial Statements

1. Significant Accounting Policies:

BlackRock Muni Intermediate Duration Fund, Inc. and BlackRock Muni
New York Intermediate Duration Fund, Inc. (the “Funds” or individually as
the “Fund”), are registered under the Investment Company Act of 1940,
as amended (the “1940 Act”), as non-diversified, closed-end manage-
ment investment companies. The Funds’ financial statements are pre-
pared in conformity with accounting principles generally accepted in the
United States of America, which may require the use of management
accruals and estimates. Actual results may differ from these estimates.
The Funds determine, and make available for publication, the net asset
values of their Common Stock on a daily basis.

The following is a summary of significant accounting policies followed
by the Funds:

Valuation of Investments: Municipal investments are valued on the basis
of prices provided by dealers or pricing services selected under the
supervision of each Fund’s Board of Directors (the “Board”). In determin-
ing the value of a particular investment, pricing services may use certain
information with respect to transactions in such investments, quotations
from dealers, pricing matrixes, market transactions in comparable invest-
ments and various relationships between investments. Swap agreements
are valued by quoted fair values received daily by each Fund’s pricing
service. Short-term securities are valued at amortized cost.

In the event that application of these methods of valuation results in
a price for an investment which is deemed not to be representative of
the market value of such investment, the investment will be valued by
a method approved by the Board as reflecting fair value (“Fair Value
Assets”). When determining the price for Fair Value Assets, the invest-
ment advisor and/or the sub-advisor seeks to determine the price that
the Funds might reasonably expect to receive from the current sale of
that asset in an arm’s-length transaction. Fair value determinations shall
be based upon all available factors that the investment advisor and/or
the sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.

Derivative Financial Instruments: The Funds may engage in various
portfolio investment strategies both to increase the return of the Funds
and to hedge, or protect, their exposure to interest rate movements and
movements in the securities markets. Losses may arise if the value of
the contract decreases due to an unfavorable change in the price of
the underlying security or if the counterparty does not perform under
the contract.

Financial futures contracts — Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits, and maintains as

collateral, such initial margin as required by the exchange on which
the transaction is effected. Pursuant to the contract, the Fund agrees
to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in value of the contract. Such receipts or payments
are known as margin variation and are recorded by the Fund as un-
realized gains or losses. When the contract is closed, the Fund records
a realized gain or loss equal to the difference between the value of
the contract at the time it was opened and the value at the time it
was closed.

Forward interest rate swaps — The Funds may enter into forward
interest rate swaps. In a forward interest rate swap, the Funds and
the counterparty agree to make periodic net payments on a specified
notional contract amount, commencing on a specified future effective
date, unless terminated earlier. These periodic payments received or
made by the Funds are recorded in the accompanying Statements of
Operations as realized gains or losses, respectively. Gains or losses
are also realized upon termination of the swap agreements. Swaps
are marked-to-market daily and changes in value are recorded as
unrealized appreciation (depreciation). The Funds generally intend to
close each forward interest rate swap before the effective date speci-
fied in the agreement and therefore avoid entering into the interest
rate swap underlying each forward interest rate swap.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
leverage their assets through the use of tender option bond trusts
(“TOBs”). A TOB is established by a third party sponsor forming a special
purpose entity, into which one or more funds, or an agent on behalf of
the funds, transfers municipal securities. Other funds managed by the
investment advisor may also contribute municipal securities to a TOB
into which each Fund has contributed securities. A TOB typically issues
two classes of beneficial interests: short-term floating rate certificates,
which are sold to third party investors, and residual certificates (“TOB
Residuals”), which are generally issued to the participating funds that
made the transfer. The TOB Residuals held by a Fund include the right
of the Fund (1) to cause the holders of a proportional share of the float-
ing rate certificates to tender their certificates at par, and (2) to transfer,
within seven days, a corresponding share of the municipal securities
from the TOB to the Fund. The cash received by the TOB from the sale
of the short-term floating rate certificates, less transaction expenses,
is paid to the Fund, which typically invest the cash in additional muni-
cipal securities. Each Fund’s transfer of the municipal securities to a
TOB is accounted for as a secured borrowing, therefore the municipal
securities deposited into a TOB are presented in the Funds’ Schedules
of Investments and the proceeds from the transaction are reported as
a liability of the Funds.

ANNUAL REPORT MAY 31, 2008 21


Notes to Financial Statements (continued)

Interest income from the underlying securities is recorded by the
Funds on an accrual basis. Interest expense incurred on the secured
borrowing and other expenses related to remarketing, administration and
trustee services to a TOB are reported as expenses of the Funds. The
floating rate certificates have interest rates that generally reset weekly
and their holders have the option to tender certificates to the TOB for
redemption at par at each reset date. As of May 31, 2008, the aggre-
gate value of the underlying municipal securities transferred to TOBs,
the related liability for trust certificates and the range of interest rates
were as follows:

Underlying
Municipal
Bonds
    Transferred to    Liability for    Range of 
    Tender Option    Trust    Interest 
    Bond Trusts    Certificates    Rates 

 
 
 
BlackRock Muni Intermediate            1.67%— 
Duration Fund, Inc    $94,973,770    $53,985,000    3.238% 
BlackRock Muni New             
York Intermediate             
Duration Fund, Inc    $ 1,917,188    $ 1,380,000    1.67% 

 
 
 

Financial transactions executed through TOBs generally will underper-
form the market for fixed rate municipal bonds in a rising interest rate
environment, but tend to outperform the market for fixed rate bonds
when interest rates decline or remain relatively stable. Should short-term
interest rates rise, each Fund’s investment in TOBs likely will adversely
affect each Fund’s net investment income and dividends to common
stock shareholders. Fluctuations in the market value of municipal securi-
ties deposited into the TOB may adversely affect each Fund’s net asset
values per share.

Segregation: In cases in which the 1940 Act and the interpretive posi-
tions of the Securities and Exchange Commission (“SEC”) require that
the Funds segregate assets in connection with certain investments (e.g.,
futures) and certain borrowings, the Funds will, consistent with certain
interpretive letters issued by the SEC, designate on its books and
records cash or other liquid debt securities having a market value at
least equal to the amount that would otherwise be required to be
physically segregated.

Investment Transactions and Investment Income: Investment trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Realized gains and losses on security transactions
are determined on the identified cost basis. Dividend income is
recorded on the ex-dividend dates. Interest income is recognized on
the accrual method. The Funds amortize all premiums and discounts
on debt securities.

Dividends and Distributions: Dividends from net investment income
are declared daily and paid monthly. Distributions of capital gains are
recorded on the ex-dividend dates. Dividends and distributions to pre-
ferred shareholders are accrued and determined as described in Note 4.

Income Taxes: It is each Fund’s policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment compa-
nies and to distribute substantially all of its taxable income to its share-
holders. Therefore, no federal income tax provision is required.

Effective November 30, 2007, the Funds implemented Financial
Accounting Standards Board (“FASB”) Interpretation No. 48, ”Accounting
for Uncertainty in Income Taxes — an interpretation of FASB Statement
No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition thresh-
old a tax position must meet in connection with accounting for uncer-
tainties in income tax positions taken or expected to be taken by an
entity, including investment companies, before being measured and rec-
ognized in the financial statements. The investment advisor has evaluat-
ed the application of FIN 48 to each Fund, and has determined that the
adoption of FIN 48 does not have a material impact on each Fund’s
financial statements. The Funds file U.S. federal and various state and
local tax returns. No income tax returns are currently under examination.
The statute of limitations on each Fund’s U.S. federal tax returns remains
open for the years ended May 31, 2005 through May 31, 2007. The
statutes of limitations on each Fund’s state and local tax returns may
remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement
of Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”), was issued and is effective for fiscal years beginning after
November 15, 2007. FAS 157 defines fair value, establishes a frame-
work for measuring fair value and expands disclosures about fair value
measurements. The impact on each Fund’s financial statement disclo-
sures, if any, is currently being assessed.

In addition, in February 2007, Statement of Financial Accounting
Standards No. 159, ”The Fair Value Option for Financial Assets and
Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal
years beginning after November 15, 2007. FAS 159 permits entities to
choose to measure many financial instruments and certain other items
at fair value that are not currently required to be measured at fair value.
FAS 159 also establishes presentation and disclosure requirements
designed to facilitate comparisons between entities that choose different
measurement attributes for similar types of assets and liabilities. The
impact on each Fund’s financial statement disclosures, if any, is currently
being assessed.

22 ANNUAL REPORT

MAY 31, 2008


Notes to Financial Statements (continued)

In March 2008, Statement of Financial Accounting Standards No. 161,
“Disclosures about Derivative Instruments and Hedging Activities — an
amendment of FASB Statement No. 133” (“FAS 161”), was issued and
is effective for fiscal years beginning after November 15, 2008. FAS 161
is intended to improve financial reporting for derivative instruments by
requiring enhanced disclosure that enables investors to understand how
and why an entity uses derivatives, how derivatives are accounted for,
and how derivative instruments affect an entity’s results of operations
and financial position. The impact on each Fund’s financial statement
disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by
each Fund’s Board, non-interested Directors (“Independent Directors”)
may defer a portion of their annual complex-wide compensation.
Deferred amounts earn an approximate return as though equivalent
dollar amounts have been invested in common shares of other
BlackRock Closed-End Funds selected by the Independent Directors.
This has approximately the same economic effect for the Independent
Directors as if the Independent Directors had invested the deferred
amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereun-
der represent general unsecured claims against the general assets of
the Funds. The Funds may, however elect to invest in common stock of
other certain BlackRock Closed-End Funds selected by the Independent
Directors in order to match its deferred compensation obligations.
Investments to cover the Funds’ deferred compensation liability are
included in other assets on the Statement of Assets and Liabilities.

Other: Expenses directly related to each Fund are charged to each
Fund. Other operating expenses shared by several funds are pro-
rated among those funds on the basis of relative net assets or other
appropriate methods.

2. Investment Advisory Agreement and Other Transactions
with Affiliates:

Each Fund has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned
subsidiary of BlackRock, Inc., to provide investment advisory and
administration services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and
The PNC Financial Services Group, Inc. (“PNC”) are principal owners
of BlackRock, Inc.

The Advisor is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such serv-
ices, each Fund pays a monthly fee at an annual rate of 0.55% of the
Fund’s average daily net assets, plus the proceeds from the issuance
of Preferred Stock and TOBs.

  The Advisor has contractually agreed to waive a portion of its fee during
the first seven years of each Fund’s operations ending July 31, 2010,
as follows:

    Fee Waiver 
    (As a Percentage 
    of Average Daily 
    Net Assets) 

 
Years 1 through 5    0.15% 
Year 6    0.10% 
Year 7    0.05% 
Year 8 and thereafter    0.00% 

 

  These amounts are included in fees waived by advisor on the Statements
of Operations. For the year ended May 31, 2008, the waivers were
as follows:

    Fees Waived 
    by Advisor 

 
BlackRock Muni Intermediate Duration Fund, Inc    $1,326,562 
BlackRock Muni New York Intermediate Duration Fund, Inc    $ 137,740 

 

  The Advisor has not agreed to waive any portion of its fee beyond
July 31, 2010.

The Advisor has agreed to waive its advisory fees by the amount of
investment advisory fees each Fund pays to the Advisor indirectly
through its investment in affiliated money market funds. This amount is
included in fees waived by advisor on the Statements of Operations for
BlackRock Muni New York Intermediate Duration Fund, Inc. For the year
ended May 31, 2008, the amount was as folllows:

    Fees Waived 
    by Advisor 

 
BlackRock Muni New York Intermediate Duration Fund, Inc    $ 6,567 

 

  The Advisor has entered into separate sub-advisory agreements with
BlackRock Investment Management, LLC (“BIM”), an affiliate of the
Advisor, with respect to each Fund, under which the Advisor pays
BIM for services it provides, a monthly fee that is a percentage of the
investment advisory fee paid by each Fund to the Advisor.

For the year ended May 31, 2008, the Funds reimbursed the Advisor for
certain accounting services, which are included in accounting services
expenses on the Statements of Operations. The reimbursements were
as follows:

    Reimbursement 
    to the Advisor 

 
BlackRock Muni Intermediate Duration Fund, Inc    $ 15,942 
BlackRock Muni New York Intermediate Duration Fund, Inc    $ 1,643 

 

  Pursuant to the terms of the custody agreement, custodian fees may be
reduced by amounts calculated on uninvested cash balances, which are
shown on the Statements of Operations as fees paid indirectly.

ANNUAL REPORT

MAY 31, 2008

23


Notes to Financial Statements (continued)

Certain officers and/or directors of the Funds are officers and/or
directors of BlackRock, Inc. or its affiliates.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for
the year ended May 31, 2008 were as follows:

    Total    Total 
    Purchases    Sales 

 
 
BlackRock Muni Intermediate         
   Duration Fund, Inc    $129,042,858    $162,287,781 
BlackRock Muni New York         
   Intermediate Duration Fund, Inc    $ 18,998,145    $ 20,740,363 

 
 

4. Capital Stock Transactions:

Each Fund is authorized to issue 200,000,000 shares of stock, includ-
ing Preferred Stock, par value $0.10 per share, all of which were initially
classified as Common Stock. Each Board is authorized, however, to
reclassify any unissued shares of common stock without approval of the
holders of Common Stock.

Common Stock

Shares issued and outstanding during the years ended May 31, 2008
and May 31, 2007 remained constant for the Funds.

Preferred Stock

Preferred Stock of the Funds has a par value of $0.10 per share and a
liquidation preference of $25,000 per share, plus accrued and unpaid
dividends, that entitles their holders to receive cash dividends at varying
annualized rates for each dividend period. The yields in effect at May 31,
2008 were as follows:

        BlackRock 
    BlackRock Muni    Muni New York 
    Intermediate    Intermediate 
    Duration Fund,Inc.    Duration Fund, Inc. 

 
 
Series M7    3.454%     
Series T7    3.454%     
Series W7    3.460%     
Series TH7    3.518%     
Series F7    3.454%    3.454% 
Series TH28    4.312%     

 
 

  Shares issued and outstanding of Preferred Stock for each of the
Funds during the years ended May 31, 2008 and May 31, 2007
remained constant.

Each Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate of 0.25%, calculated on the aggregate
principal amount.

For the year ended May 31, 2008, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned
commissions as follows:

    Commissions 

 
BlackRock Muni Intermediate Duration Fund, Inc    $ 524,140 
BlackRock Muni New York Intermediate Duration Fund, Inc    $ 69,992 

 

Dividends on seven-day Preferred Stock are cumulative at a rate, which
is reset every seven days based on the results of an auction. Dividends
on 28 day Preferred Stock are cumulative at a rate which is reset every
28 days based on the results of an auction. If the Preferred Stock fails
to clear the auction on an auction date, each Fund is required to pay
the maximum applicable rate on the Preferred Stock to holders of such
shares for each successive dividend period until such time as the stock
is successfully auctioned. The maximum applicable rate on the Preferred
Stock is the higher of 110% of the Telerate/BBA LIBOR or 110% of 90%
of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus
the marginal tax rate. For the year ended May 31, 2008, the Preferred
Stock of each Fund was successfully auctioned at each auction date
until February 13, 2008. The low, high and average dividend rates on the
Preferred Stock for each Fund for the year ended
May 31, 2008 were as follows:

    Series    Low    High    Average 

 
 
 
 
BlackRock Muni Intermediate                 
   Duration Fund, Inc.    M7    3.250%    5.198%    3.922% 
    T7    3.200%    4.922%    3.937% 
    W7    3.100%    5.060%    3.881% 
    TH7    3.050%    5.198%    3.911% 
    F7    3.100%    5.198%    3.904% 
    TH28    3.300%    4.728%    3.949% 

 
 
 
 
BlackRock Muni New York                 
   Intermediate Duration                 
   Fund, Inc.    F7    2.350%    5.198%    3.689% 

 
 
 
 

Since February 13, 2008 the Preferred Stock of each Fund failed to
clear any auctions. As a result, the Preferred Stock dividend rates were
reset to the maximum applicable rate, which ranged from 3.45% to
5.20% . A failed auction is not an event of default for the Fund but is a
liquidity event for the holders of the Preferred Stock. A failed auction
occurs when there are more sellers of a fund’s auction rate preferred
stock than buyers. It is impossible to predict how long this imbalance
will last. An auction for the Fund’s Preferred Stock may not occur for
some time, if ever, and even if liquidity does resume, holders of Preferred
Stock may not have the ability to sell the Preferred Stock at liquidation
preference.

The Funds may not declare dividends or make other distributions on
Common Stocks or purchase any such shares if, at the time of the dec-
laration, distribution or purchase, asset coverage with respect to the out-
standing Preferred Stock is less than 200%.

24 ANNUAL REPORT

MAY 31, 2008


Notes to Financial Statements (continued)

The Preferred Stock is redeemable at the option of each Fund, in whole
or in part, on any dividend payment date at $25,000 per share plus any
accumulated unpaid dividends whether or not declared. The Preferred
Stock is also subject to mandatory redemption at $25,000 per share plus
any accumulated or unpaid dividends, whether or not declared, if certain
requirements relating to the composition of the assets and liabilities of the
Fund, as set forth in each Fund’s Articles Supplementary, are not satisfied.

The holders of Preferred Stock have voting rights equal to the holders
of Common Stock (one vote per share) and will vote together with holders
of Common Stock (one vote per share) as a single class. However, the
holders of Preferred Stock, voting as a separate class, are also entitled
to elect two Directors for a Fund. In addition, the 1940 Act requires that
along with approval by shareholders that might otherwise be required,
the approval of the holders of a majority of any outstanding Preferred
Stock, voting separately as a class, would be required to (a) adopt any
plan of reorganization that would adversely affect the Preferred Stock (b)
change a Fund’s sub classification as a closed-end investment company
or change its fundamental investment restrictions or (c) change its busi-
ness so as to cease to be an investment company.

5. Income Tax Information:

BlackRock Muni Intermediate Duration Fund, Inc.

The tax character of distributions paid during the fiscal years ended
May 31, 2008 and May 31, 2007 was as follows:

    5/31/2008    5/31/2007 
   
 
Distributions paid from:         
   Tax-exempt income    $ 40,440,076    $ 38,760,689 
   Ordinary income        4,118,763 
   Net long-term capital gains        1,853,318 
   
 
Total distributions    $ 40,440,076    $ 44,732,770 
   
 

As of May 31, 2008, the components of accumulated earnings on a tax
basis were as follows:

Undistributed tax-exempt net income    $ 2,251,950 
Undistributed long-term net capital gains                              
   
Total undistributed net earnings             2,251,950 
Capital loss carryforward               (929,705)* 
Net unrealized gains             7,591,689** 
   
Total accumulated net earnings    $ 8,913,934 
   

* On May 31, 2008, the Fund has a capital loss carryforward of $929,705, of
which $318,382 expires in 2015 and $611,323 expires in 2016. This amount
will be available to offset future realized capital gains.
** The difference between book-basis and tax-basis net unrealized gains is attribu-
table primarily to the deferred compensation to directors, the difference between
book and tax amortization methods for premiums and discounts on fixed income
securities, book/tax differences in the accrual of income on securities in default,
the deferral of post-October capital losses for tax purposes and the difference
between the book and tax treatment of residual interests in tender option
bond trusts.

BlackRock Muni New York Intermediate Duration Fund, Inc.

The tax character of distributions paid during the fiscal years ended
May 31, 2008 and May 31, 2007 was as follows:

    5/31/2008    5/31/2007 
   
 
Distributions paid from:         
Tax-exempt income    $ 3,824,832    $ 3,747,217 
   
 
Total distributions    $ 3,824,832    $ 3,747,217 
   
 

As of May 31, 2008, the components of accumulated losses on a tax
basis were as follows:

Undistributed tax-exempt net income    $ 315,261 
Undistributed long-term net capital gains                              
   
Total undistributed net earnings                 315,261 
Capital loss carryforward               (159,511)* 
Unrealized losses               (685,297)** 
   
Total accumulated net losses    $ (529,547) 
   

* On May 31, 2008, the Fund had a net capital loss carryforward of $159,511,
of which $134,161 expires in 2013 and $25,350 expires in 2016. This amount
will be available to offset future realized capital gains.
** The difference between book-basis and tax-basis net unrealized losses is attribu-
table primarily to the difference between book and tax amortization methods for
premiums and discounts on fixed income securities, the deferral of post-October
capital losses for tax purposes and the difference between the book and tax treat-
ment of residual interests in tender option bond trusts.

6. Concentration Risk:

Each Fund’s investments are concentrated in certain states, which may be
affected by adverse financial, social, environmental, economic, regulatory
and political factors.

Many municipalities insure repayment of their bonds, which reduces the
risk of loss due to issuer default. The market value of these bonds may
fluctuate for other reasons and there is no assurance that the insurer will
meet its obligation.

7. Restatement Information:

Subsequent to the initial issuance of its May 31, 2006 financial state-
ments, BlackRock Muni Intermediate Duration Fund, Inc. determined that
the criteria for sale accounting had not been met for certain transfers of
municipal bonds, and that these transfers should have been accounted
for as secured borrowings rather than as sales. As a result, certain financial
highlights for the year ended May 31, 2005 have been restated to give
effect to recording the transfers of the municipal bonds as secured borrow-
ings, including recording interest on the bonds as interest income and
interest on the secured borrowings as interest expense.

ANNUAL REPORT

MAY 31, 2008

25


Notes to Financial Statements (concluded)

BlackRock Muni Intermediate Duration Fund, Inc.
Financial Highlights
For the Year Ended May 31, 2005

    2005 
   
    Previously     
    Reported    Restated 

 
 
Total expenses, net of waiver***    84%    .85% 
Portfolio turnover    54.55%    54% 

 
 

*** Do not reflect the effect of dividends to Preferred Stock shareholders.

8. Subsequent Events:

Each Fund paid a net investment income dividend to holders of its
Common Stock on July 1, 2008 to shareholders of record on June 16,
2008. The amount of the tax-exempt income dividend per share was
as follows:

    Per Share 
    Amount 

 
BlackRock Muni Intermediate Duration Fund, Inc    $0.05800 
BlackRock Muni New York Intermediate Duration Fund, Inc    $0.05300 

 

The dividends declared on Preferred Stock Shares for the period June 1,
2008 to June 30, 2008 for the Funds were as follows:

    Series    Amount 

 
 
BlackRock Muni Intermediate Duration         
   Fund, Inc.    M7    $162,472 
    T7    178,294 
    W7    131,645 
    TH7    195,797 
    F7    128,979 
    TH28    105,462 

 
 
BlackRock Muni New York Intermediate         
   Duration Fund, Inc.    F7    82,514 

 
 

On June 2, 2008, the Funds announced the following redemptions of
Preferred Stock at a price of $25,000 per share plus any accrued and
unpaid dividends through the redemption date:

BlackRock        Shares     
Muni Intermediate    Redemption    to be    Aggregate 
Duration Fund, Inc.:    Date    Redeemed    Price 

 
 
 
Series M7    6/24/2008    205    $ 5,125,000 
Series T7    6/25/2008    277    $ 6,925,000 
Series W7    6/26/2008    205    $ 5,125,000 
Series TH7    6/27/2008    277    $ 6,925,000 
Series F7    6/23/2008    205    $ 5,125,000 
Series TH28    7/07/2008    144    $ 3,600,000 

 
 
 
 
BlackRock             
Muni New York        Shares     
Intermediate    Redemption    to be    Aggregate 
Duration Fund, Inc.:    Date    Redeemed    Price 

 
 
 
Series F7    6/23/2008    55    $ 1,375,000 

 
 
 

The Funds financed the Preferred Stock redemptions with cash received
from TOB transactions.

26 ANNUAL REPORT

MAY 31, 2008


Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of BlackRock
Muni Intermediate Duration Fund, Inc.:

We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock Muni Intermediate
Duration Fund, Inc. as of May 31, 2008, and the related statement of
operations for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended and the
financial highlights for each of the three years in the period then ended.
These financial statements and financial highlights are the responsibility
of the Fund’s management. Our responsibility is to express an opinion
on the financial statements and financial highlights based on our audits.
The financial highlights for the year ended May 31, 2005 (before the
restatement described in Note 7) were audited by other auditors whose
report, dated July 13, 2005, expressed a qualified opinion on the
financial highlights because of the errors described in Note 7. The finan-
cial highlights for the period August 1, 2003 (commencement of opera-
tions) to May 31, 2004 were audited by other auditors whose report,
dated July 13, 2005, expressed an unqualified opinion on those
financial highlights.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assur-
ance about whether the financial statements and financial highlights
are free of material misstatement. The Fund is not required to have, nor
were we engaged to perform, an audit of its internal control over finan-
cial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Fund’s internal control over finan-
cial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of May 31, 2008, by corre-

spondence with the custodian. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights of
BlackRock Muni Intermediate Duration Fund, Inc. referred to above,
present fairly, in all material respects, its financial position as of May 31,
2008, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended
and the financial highlights for each of the three years in the period
then ended, in conformity with accounting principles generally accepted
in the United States of America.

We also have audited the adjustments, applied by management, to
restate certain financial highlights for the year ended May 31, 2005
to correct the errors described in Note 7. These adjustments are the
responsibility of the Fund’s management. The audit procedures that we
performed with respect to the adjustments included such tests as we
considered necessary in the circumstances and were designed to obtain
reasonable assurance about whether the adjustments are appropriate
and have been properly applied, in all material respects, to the restated
financial highlights for the year ended May 31, 2005. We did not per-
form any audit procedures designed to assess whether any additional
adjustments to such financial highlights might be necessary in order for
such financial highlights to be presented in conformity with generally
accepted accounting principles. In our opinion, the adjustments to
the financial highlights for the year ended May 31, 2005 described in
Note 7 are appropriate and have been properly applied, in all material
respects. However, we were not engaged to audit, review, or apply any
procedures to such financial highlights other than with respect to the
adjustments described in Note 7 and, accordingly, we do not express
an opinion or any other form of assurance on such financial highlights.

Deloitte & Touche LLP
Princeton, New Jersey

July 25, 2008

ANNUAL REPORT

MAY 31, 2008

27


Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of BlackRock
Muni New York Intermediate Duration Fund, Inc.:

We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock Muni New York
Intermediate Duration Fund, Inc. (the “Fund”) as of May 31, 2008, and
the related statement of operations for the year then ended, and the
statements of changes in net assets and the financial highlights for each
of the two years in the period then ended. These financial statements
and financial highlights are the responsibility of the Fund’s management.
Our responsibility is to express an opinion on the financial statements
and financial highlights based on our audits. The financial highlights for
each of the two years in the period ended May 31, 2006 and for
the period August 1, 2003 (commencement of operations) to May 31,
2004 were audited by other auditors whose report, dated July 14, 2006,
expressed an unqualified opinion on that financial statement and
financial highlights.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assur-
ance about whether the financial statements and financial highlights
are free of material misstatement. The Fund is not required to have,
nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audits included consideration of internal control

over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of express-
ing an opinion on the effectiveness of the Fund’s internal control over
financial reporting. Accordingly, we express no such opinion. An audit
also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by manage-
ment, and evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of May 31,
2008, by correspondence with the custodian. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above, present fairly, in all material respects, the financial position of
BlackRock Muni New York Intermediate Duration Fund, Inc. as of May 31,
2008, the results of its operations for the year then ended, and the
changes in its net assets and the financial highlights for each of the two
years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey

July 25, 2008

Important Tax Information (Unaudited)

All of the net investment income distributions paid by BlackRock Muni Intermediate Duration Fund, Inc. and BlackRock Muni New York Intermediate
Duration Fund, Inc. during the taxable year ended May 31, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

28 ANNUAL REPORT

MAY 31, 2008


Disclosure of Investment Advisory Agreement and Subadvisory Agreement

The Board of Directors (collectively, the “Board,” the members of which
are referred to as “Directors”) of the BlackRock Muni Intermediate
Duration Fund, Inc. (“MUI”) and BlackRock Muni New York Intermediate
Duration Fund, Inc. (“MNE” and, together with MUI, the “Funds”) met in
April and May 2008 to consider approving the continuation of each
Fund's investment advisory agreement (each, an “Advisory Agreement”)
with BlackRock Advisors, LLC (the “Advisor”), each Fund's investment
adviser. The Board also considered the approval of each Fund's subadvi-
sory agreement (each, a “Subadvisory Agreement” and, together with the
“Advisory Agreement,” the “Agreements”) between the Advisor and
BlackRock Investment Management, LLC (the “Subadvisor”). The Advisor
and the Subadvisor are collectively referred to herein as the “Advisors”
and, together with BlackRock, Inc., “BlackRock.”

Activities and Composition of the Board

The Board of Directors of each Fund consists of thirteen individuals,
eleven of whom are not “interested persons” of the Funds as defined
in the Investment Company Act of 1940 (the “1940 Act”) (the
“Independent Directors”). The Directors are responsible for the oversight
of the operations of the Funds and perform the various duties imposed
on the directors of investment companies by the 1940 Act. The
Independent Directors have retained independent legal counsel to assist
them in connection with their duties. The Chairman of the Board is an
Independent Director. The Board has established four standing commit-
tees: an Audit Committee, a Governance and Nominating Committee, a
Compliance Committee and a Performance Oversight Committee.

Advisory Agreement and Subadvisory Agreement

Upon the consummation of the combination of BlackRock, Inc.'s invest-
ment management business with Merrill Lynch & Co., Inc.'s investment
management business, including Merrill Lynch Investment Managers, L. .,
and certain affiliates, each Fund entered into an Advisory Agreement and
a Subadvisory Agreement, each with an initial two-year term. Consistent
with the 1940 Act, after the Advisory and Subadvisory Agreement's
respective initial two-year term, the Board is required to consider the
continuation of each Fund's Advisory Agreement and Subadvisory
Agreement on an annual basis. In connection with this process, the
Board assessed, among other things, the nature, scope and quality of
the services provided to each Fund by the personnel of BlackRock and
its affiliates, including investment management, administrative services,
secondary market support services, oversight of fund accounting, and
assistance in meeting legal and regulatory requirements. The Board also
received and assessed information regarding the services provided to
each Fund by certain unaffiliated service providers.

Throughout the year, the Board also considered a range of information in
connection with its oversight of the services provided by BlackRock and
its affiliates. Among the matters the Board considered were: (a) invest-
ment performance for one, three and five years, as applicable, against
peer funds, as well as senior management and portfolio managers'

analysis of the reasons for underperformance, if applicable; (b) fees,
including advisory and other fees paid to BlackRock and its affiliates
by each Fund, such as transfer agency fees and fees for marketing and
distribution; (c) Fund operating expenses paid to third parties; (d) the
resources devoted to and compliance reports relating to each Fund's
investment objective, policies and restrictions; (e) each Fund's compli-
ance with its Code of Ethics and compliance policies and procedures;
(f) the nature, cost and character of non-investment management serv-
ices provided by BlackRock and its affiliates; (g) BlackRock's and other
service providers' internal controls; (h) BlackRock's implementation of
the proxy voting guidelines approved by the Board; (i) the use of equity
brokerage commissions and execution quality; (j) valuation and liquidity
procedures; and (k) reviews of BlackRock's business, including
BlackRock's response to the increasing scale of its business.

Board Considerations in Approving the Advisory
Agreement and Subadvisory Agreement

To assist the Board in its evaluation of the Agreements, the Directors
received information from BlackRock in advance of the April 22, 2008
meeting which detailed, among other things, the organization, business
lines and capabilities of the Advisors, including: (a) the responsibilities
of various departments and key personnel and biographical information
relating to key personnel; (b) financial statements for BlackRock; (c) the
advisory and/or administrative fees paid by each Fund to the Advisors,
including comparisons, compiled by Lipper, an independent third party,
with the management fees of funds with similar investment objectives
(“Peers”); (d) the profitability of BlackRock and certain industry prof-
itability analyses for advisers to registered investment companies;
(e) the expenses of BlackRock in providing various services; (f) non-
investment advisory reimbursements, if applicable, and “fallout” benefits
to BlackRock; (g) economies of scale, if any, generated through the
Advisors' management of all of the BlackRock closed-end funds (the
“Fund Complex”); (h) the expenses of each Fund, including comparisons
of respective Fund's expense ratios (both before and after any fee
waivers) with the expense ratios of its Peers; and (i) each Fund's per-
formance for the past one-, three- and five-year periods, when applica-
ble, as well as each Fund's performance compared to its Peers.

The Board also considered other matters it deemed important to the
approval process, where applicable, such as payments made to
BlackRock or its affiliates relating to the distribution of Fund shares,
services related to the valuation and pricing of Fund portfolio holdings,
allocation of Fund brokerage fees (including the related benefits
to BlackRock of “soft dollars”) and direct and indirect benefits to
BlackRock and its affiliates from their relationship with the Funds.

ANNUAL REPORT

MAY 31, 2008

29


Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

In addition to the foregoing materials, independent legal counsel to the
Independent Directors provided a legal memorandum outlining, among
other things, the duties of the Board under the 1940 Act, as well as the
general principles of relevant law in reviewing and approving advisory
contracts, the requirements of the 1940 Act in such matters, an advis-
er's fiduciary duty with respect to advisory agreements and compensa-
tion, and the standards used by courts in determining whether invest-
ment company boards of directors have fulfilled their duties and the fac-
tors to be considered by boards in voting on advisory agreements.

The Independent Directors reviewed this information and discussed it
with independent legal counsel prior to the meeting on April 22, 2008.
At the Board meeting on April 22, 2008, BlackRock made a presenta-
tion to and responded to questions from the Board. Following the meet-
ing on April 22, 2008, the Board presented BlackRock with questions
and requests for additional information. BlackRock responded to these
requests with additional written materials provided to the Directors prior
to the meetings on May 29 and 30, 2008. At the Board meeting on May
29 and 30, 2008, BlackRock responded to further questions from the
Board. In connection with BlackRock's presentations, the Board consid-
ered each Agreement and, in consultation with independent legal
counsel, reviewed the factors set out in judicial decisions and SEC
statements relating to the renewal of the Agreements.

I. Matters Considered by the Board

In connection with its deliberations with respect to the Agreements, the
Board considered all factors it believed relevant with respect to each
Fund, including the following: the nature, extent and quality of the servic-
es provided by the Advisors; the investment performance of each Fund;
the costs of the services to be provided and profits to be realized by the
Advisors and their affiliates from their relationship with the Funds; the
extent to which economies of scale would be realized as the Fund
Complex grows; and whether BlackRock realizes other benefits from its
relationship with the Funds.

A. Nature, Extent and Quality of the Services — In evaluating the nature,
extent and quality of the Advisors' services, the Board reviewed informa-
tion concerning the types of services that the Advisors provide and are
expected to provide to each Fund, narrative and statistical information
concerning each Fund's performance record and how such performance
compares to each Fund's Peers, information describing BlackRock's
organization and its various departments, the experience and responsi-
bilities of key personnel and available resources. The Board noted the
willingness of the personnel of BlackRock to engage in open, candid dis-
cussions with the Board. The Board further considered the quality of the
Advisors' investment process in making portfolio management decisions.

In addition to advisory services, the Directors considered the quality of
the administrative or non-investment advisory services provided to the
Funds. In this regard, the Advisors and their affiliates provided each Fund
with such administrative, transfer agency, shareholder and other services,
as applicable (exclusive of, and in addition to, any such services provided
by others for the Funds), and officers and other personnel as are neces-
sary for the operations of the respective Fund. In addition to investment
management services, the Advisors and their affiliates provided each
Fund with services such as: preparing shareholder reports and commu-
nications, including annual and semi-annual financial statements and
Fund web sites; communications with analysts to support secondary
market trading; assisting with daily accounting and pricing; preparing
periodic filings with regulators and stock exchanges; overseeing and
coordinating the activities of other service providers; administering and
organizing Board meetings and preparing the Board materials for such
meetings; providing legal and compliance support (such as helping to
prepare proxy statements and responding to regulatory inquiries); and
performing other Fund administrative tasks necessary for the operation
of the respective Fund (such as tax reporting and fulfilling regulatory
filing requirements). The Board considered the Advisors' policies and
procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock — As previ-
ously noted, the Board received performance information regarding each
Fund and its Peers. Among other things, the Board received materials
reflecting each Fund's historic performance and each Fund's perform-
ance compared to its Peers. More specifically, each Fund's one-, three-
and five-year total returns (when applicable) were evaluated relative to
its respective Peers (including the Peers' median performance).

The Board reviewed a narrative analysis of the Peer rankings prepared
by Lipper and summarized by BlackRock at the Board's request. The
summary placed the Peer rankings into context by analyzing various
factors that affect these comparisons.

The Board noted that in general MUI performed better than its Peers in
that MUI’s performance was at or above the median in at least two of
the one-, three- and five-year periods reported. The Board noted that
MUI performed below the median of its Peers for the one-year period
ended December 31, 2007. The Board then discussed with representa-
tives of BlackRock the reasons for MUI’s underperformance during this
period compared with its Peers. The Board noted that, although MUI
underperformed its Peers for the one-year period based on Lipper’s
ranking system, it had outperformed its Peers based on a system utilized
by BlackRock to track the performance of the Funds which places a
greater emphasis on a Fund’s yield than Lipper’s system.

30 ANNUAL REPORT

MAY 31, 2008


Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

The Board noted that MNE performed below the median of its Peers for
the one- and three-year periods reported. The Board noted that MNE’s
underperformance was due in part to a flight to quality in the shorter
end of the maturity spectrum than the Fund invests in. The Board
concluded that BlackRock was committed to provide the resources
necessary to assist the portfolio managers and to improve MNE’s per-
formance. Based on its review, the Board generally was satisfied with
BlackRock’s efforts to improve MNE’s performance going forward.

After considering this information, the Boards concluded that the per-
formance of each Fund, in light of and after considering the other facts
and circumstances applicable to each Fund, supports a conclusion that
each Fund's Agreements should be renewed.

C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from the
Relationship with the Funds — In evaluating the management fees and
expenses that each Fund is expected to bear, the Board considered
each Fund's current management fee structure and each Fund's
expense ratios in absolute terms as well as relative to the fees and
expense ratios of its applicable Peers. The Board, among other things,
reviewed comparisons of each Fund's gross management fees before
and after any applicable reimbursements and fee waivers and total
expense ratios before and after any applicable waivers with those of its
applicable Peers. The Board also reviewed a narrative analysis of the
Peer rankings prepared by Lipper and summarized by BlackRock at
the request of the Board. This summary placed the Peer rankings into
context by analyzing various factors that affect these comparisons.

The Board noted that each Fund paid contractual management fees
lower than or equal to the median contractual fees paid by its respective
Peers. This comparison was made without giving effect to any expense
reimbursements or fee waivers.

The Board also compared the management fees charged and services
provided to the closed-end investment companies managed by the
Advisors to the management fees charged by the Advisors to other
types of clients (such as open-end investment companies and separate-
ly managed institutional accounts) in similar investment categories. The
Board noted certain differences in services provided and costs incurred
by the Advisors with respect to closed-end funds compared to sepa-
rately managed accounts and open-end funds in general and the
reasons for such differences.

In connection with the Board's consideration of the fees and expense
information, the Board reviewed the considerable investment manage-
ment experience of the Advisors and considered the high level of invest-
ment management, administrative and other services provided by the
Advisors. In light of these factors and the other facts and circumstances
applicable to each Fund, the Board concluded that the fees paid and
level of expenses incurred by each Fund under its Agreements support a
conclusion that each Fund's Agreements should be renewed.

D. Profitability of BlackRock — The Board also considered BlackRock's
profitability in conjunction with its review of fees. The Board reviewed
BlackRock's profitability with respect to the Fund Complex and other
fund complexes managed by the Advisors. In reviewing profitability, the
Board recognized that one of the most difficult issues in determining
profitability is establishing a method of allocating expenses. The Board
also reviewed BlackRock's assumptions and methodology of allocating
expenses, noting the inherent limitations in allocating costs among
various advisory products. The Board also recognized that individual
fund or product line profitability of other advisors is generally not
publicly available.

The Board recognized that profitability may be affected by numerous fac-
tors including, among other things, the types of funds managed, expense
allocations and business mix, and therefore comparability of profitability
is somewhat limited. Nevertheless, to the extent available, the Board
considered BlackRock's operating margin compared to the operating
margin estimated by BlackRock for a leading investment management
firm whose operations consist primarily of advising closed-end funds.
The comparison indicated that BlackRock's operating margin was
approximately the same as the operating margin of such firm.

In evaluating the reasonableness of the Advisors' compensation, the
Board also considered any other revenues paid to the Advisors, including
partial reimbursements paid to the Advisors for certain non-investment
advisory services, if applicable. The Board noted that these payments
were less than the Advisors' costs for providing these services. The Board
also considered indirect benefits (such as soft dollar arrangements) that
the Advisors and their affiliates are expected to receive, which are attrib-
utable to their management of the Fund.

The Board concluded that BlackRock's profitability, in light of all the
other facts and circumstances applicable to each Fund, supports a
conclusion that each Fund's Agreements should be renewed.

ANNUAL REPORT

MAY 31, 2008

31


  Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded)

E. Economies of Scale — In reviewing each Fund's fees and expenses,
the Board examined the potential benefits of economies of scale, and
whether any economies of scale should be reflected in the Fund’s fee
structure, for example through the use of breakpoints for the Fund or
the Fund Complex. In this regard, the Board reviewed information provid-
ed by BlackRock, noting that most closed-end fund complexes do not
have fund-level breakpoints because closed-end funds generally do not
experience substantial growth after their initial public offering and each
fund is managed independently consistent with its own investment
objectives. The Board noted that only three closed-end funds in the Fund
Complex have breakpoints in their respective fee structures. Information
provided by Lipper also revealed that only one closed-end fund complex
used a complex-level breakpoint structure.

F. Other Factors — In evaluating fees, the Board also considered indirect
benefits or profits the Advisors or their affiliates may receive as a result
of their relationships with the Funds (“fall-out benefits”). The Directors,
including the Independent Directors, considered the intangible benefits
that accrue to the Advisors and their affiliates by virtue of their relation-
ships with the Funds, including potential benefits accruing to the
Advisors and their affiliates as a result of participating in offerings of the
Funds’ shares, potentially stronger relationships with members of the
broker-dealer community, increased name recognition of the Advisors
and their affiliates, enhanced sales of other investment funds and prod-
ucts sponsored by the Advisors and their affiliates and increased assets
under management which may increase the benefits realized by the
Advisors from soft dollar arrangements with broker-dealers. The Board
also considered the unquantifiable nature of these potential benefits.

II. Conclusion with Respect to the Agreements.

In reviewing the Agreements, the Directors did not identify any single
factor discussed above as all-important or controlling and different
Directors may have attributed different weights to the various factors
considered. The Directors, including the Independent Directors, unani-
mously determined that each of the factors described above, in light of
all the other factors and all of the facts and circumstances applicable to
each respective Fund, was acceptable for each Fund and supported the
Directors' conclusion that the terms of each Agreement were fair and
reasonable, that each Fund's fees are reasonable in light of the services
provided to the respective Fund and that each Agreement should be
approved.

32 ANNUAL REPORT

MAY 31, 2008


Automatic Dividend Reinvestment Plan

How the Plan Works — The Funds offer a Dividend Reinvestment Plan
(the “Plan”) under which income and capital gains dividends paid by
a Fund are automatically reinvested in additional shares of Common
Stock of the Fund. The Plan is administered on behalf of the shareholders
by Computershare Trust Company, N.A. (the “Plan Agent”). Under the
Plan, whenever a Fund declares a dividend, participants in the Plan will
receive the equivalent in shares of Common Stock of the Fund. The Plan
Agent will acquire the shares for the participant’s account either (i)
through receipt of additional unissued but authorized shares of the
Funds (“newly issued shares”) or (ii) by purchase of outstanding shares
of Common Stock on the open market on the New York Stock Exchange
or elsewhere. If, on the dividend payment date, the Fund’s net asset
value per share is equal to or less than the market price per share plus
estimated brokerage commissions (a condition often referred to as a
“market premium”), the Plan Agent will invest the dividend amount in
newly issued shares. If the Fund’s net asset value per share is greater
than the market price per share (a condition often referred to as a
“market discount”), the Plan Agent will invest the dividend amount by
purchasing on the open market additional shares. If the Plan Agent is
unable to invest the full dividend amount in open market purchases, or
if the market discount shifts to a market premium during the purchase
period, the Plan Agent will invest any uninvested portion in newly issued
shares. The shares acquired are credited to each shareholder’s account.
The amount credited is determined by dividing the dollar amount of the
dividend by either (i) when the shares are newly issued, the net asset
value per share on the date the shares are issued or (ii) when shares
are purchased in the open market, the average purchase price per share.

Participation in the Plan — Participation in the Plan is automatic, that
is, a shareholder is automatically enrolled in the Plan when he or she
purchases shares of Common Stock of the Funds unless the shareholder
specifically elects not to participate in the Plan. Shareholders who elect
not to participate will receive all dividend distributions in cash. Share-
holders who do not wish to participate in the Plan must advise the Plan
Agent in writing (at the address set forth below) that they elect not to
participate in the Plan. Participation in the Plan is completely voluntary
and may be terminated or resumed at any time without penalty by
writing to the Plan Agent.

Benefits of the Plan — The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds. The
Plan promotes a long-term strategy of investing at a lower cost. All shares
acquired pursuant to the Plan receive voting rights. In addition, if the
market price plus commissions of a Fund’s shares is above the net
asset value, participants in the Plan will receive shares of the Fund for
less than they could otherwise purchase them and with a cash value
greater than the value of any cash distribution they would have received.
However, there may not be enough shares available in the market to
make distributions in shares at prices below the net asset value. Also,
since the Funds do not redeem shares, the price on resale may be more
or less than the net asset value.

Plan Fees — There are no enrollment fees or brokerage fees for partici-
pating in the Plan. The Plan Agent’s service fees for handling the rein-
vestment of distributions are paid for by the Funds. However, brokerage
commissions may be incurred when the Funds purchase shares on
the open market and shareholders will pay a pro rata share of any
such commissions.

Tax Implications — The automatic reinvestment of dividends and distri-
butions will not relieve participants of any federal, state or local income
tax that may be payable (or required to be withheld) on such dividends.
Therefore, income and capital gains may still be realized even though
shareholders do not receive cash. Participation in the Plan generally will
not affect the tax-exempt status of exempt interest dividends paid by
the Funds. If, when the Funds’ shares are trading at a market premium,
the Funds issue shares pursuant to the Plan that have a greater fair
market value than the amount of cash reinvested, it is possible that all
or a portion of the discount from the market value (which may not
exceed 5% of the fair market value of the Funds’ shares) could be
viewed as a taxable distribution. If the discount is viewed as a taxable
distribution, it is also possible that the taxable character of this discount
would be allocable to all the shareholders, including shareholders who
do not participate in the Plan. Thus, shareholders who do not participate
in the Plan might be required to report as ordinary income a portion of
their distributions equal to their allocable share of the discount.

Contact Information — All correspondence concerning the Plan, includ-
ing any questions about the Plan, should be directed to the Plan Agent
at Computershare Trust Company, N.A., .O. Box 43010, Providence, RI
02940-3010, Telephone: (800) 426-5523.

ANNUAL REPORT

MAY 31, 2008

33


Officers and Directors                 
 
                Number of     
        Length of        BlackRock-     
    Position(s)    Time        Advised Funds     
Name, Address    Held with    Served as        and Portfolios    Public 
and Year of Birth    Funds    a Director2    Principal Occupation(s) During Past 5 Years    Overseen    Directorships 

 
 
 
 
 
 
     Non-Interested Directors1                     

 
 
 
 
 
 
Richard E. Cavanagh    Chairman    Since    Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life    113 Funds    Arch Chemical 
40 East 52nd Street    of the Board    2007    Insurance Company of America since 1998; Chairman and Trustee,    110 Portfolios    (chemical and allied 
New York, NY 10022    and Director        Educational Testing Service since 1997; Director, The Fremont Group        products) 
1946            since 1996; Formerly President and Chief Executive Officer of The         
            Conference Board, Inc. (global business research organization) from         
            1995 to 2007.         

 
 
 
 
 
 
Karen P. Robards    Vice Chair of    Since    Partner of Robards & Company, LLC, (financial advisory firm) since    112 Funds    AtriCure, Inc. 
40 East 52nd Street    the Board,    2007    1987; Co-founder and Director of the Cooke Center for Learning and    109 Portfolios    (medical devices); 
New York, NY 10022    Chair of        Development, (a not-for-profit organization) since 1987; Formerly        Care Investment 
1950    the Audit        Director of Enable Medical Corp. from 1996 to 2005; Formerly an        Trust, Inc. (health 
    Committee        investment banker at Morgan Stanley from 1976 to 1987.        care REIT) 
    and Director                 

 
 
 
 
 
 
G. Nicholas Beckwith, III    Director    Since    Chairman and Chief Executive Officer, Arch Street Management, LLC    112 Funds    None 
40 East 52nd Street        2007    (Beckwith Family Foundation) and various Beckwith property companies 109 Portfolios     
New York, NY 10022            since 2005; Chairman of the Board of Directors, University of Pittsburgh         
1945            Medical Center since 2002; Board of Directors, Shady Side Hospital         
            Foundation since 1977; Board of Directors, Beckwith Institute for         
            Innovation In Patient Care since 1991; Member, Advisory Council on         
            Biology and Medicine, Brown University since 2002; Trustee, Claude         
            Worthington Benedum Foundation (charitable foundation) since 1989;         
            Board of Trustees, Chatham College since 1981; Board of Trustees,         
            University of Pittsburgh since 2002; Emeritus Trustee, Shady Side         
            Academy since 1977; Formerly Chairman and Manager, Penn West         
            Industrial Trucks LLC (sales, rental and servicing of material handling         
            equipment) from 2005 to 2007; Formerly Chairman, President and         
            Chief Executive Officer, Beckwith Machinery Company (sales, rental         
            and servicing of construction and equipment) from 1985 to 2005;         
            Formerly Board of Directors, National Retail Properties (REIT) from         
            2006 to 2007.         

 
 
 
 
 
 
Kent Dixon    Director and    Since    Consultant/Investor since 1988.    113 Funds    None 
40 East 52nd Street    Member of    2007        110 Portfolios     
New York, NY 10022    the Audit                 
1937    Committee                 

 
 
 
 
 
Frank J. Fabozzi    Director and    Since    Consultant/Editor of The Journal of Portfolio Management since 2006;    113 Funds    None 
40 East 52nd Street    Member of    2007    Professor in the Practice of Finance and Becton Fellow, Yale University,    110 Portfolios     
New York, NY 10022    the Audit        School of Management, since 2006; Formerly Adjunct Professor of         
1948    Committee        Finance and Becton Fellow, Yale University from 1994 to 2006.         

 
 
 
 
 
Kathleen F. Feldstein    Director    Since    President of Economics Studies, Inc. (private economic consulting firm)    113 Funds    The McClatchy 
40 East 52nd Street        2007    since 1987; Chair, Board of Trustees, McLean Hospital since 2000;    110 Portfolios    Company 
New York, NY 10022            Member of the Corporation of Partners Community Healthcare, Inc.        (publishing) 
1941            since 2005; Member of the Corporation of Partners HealthCare since         
            1995; Member of the Corporation of Sherrill House (healthcare) since         
            1990; Trustee, Museum of Fine Arts, Boston since 1992; Member of the         
            Visiting Committee to the Harvard University Art Museum since 2003;         
            Trustee, The Committee for Economic Development (research organi-         
            zation) since 1990; Member of the Advisory Board to the International         
            School of Business, Brandeis University since 2002; Formerly Director         
            of Bell South (communications) from 1998 to 2006; Formerly Director         
            of Ionics (water purification) from 1992 to 2005; Formerly Director of         
            John Hancock Financial Services from 1994 to 2003; Formerly         
            Director of Knight Ridder (media) from 1998 to 2006.         

 
 
     
 

34 ANNUAL REPORT

MAY 31, 2008


Officers and Directors (continued)         
 
                Number of     
        Length of        BlackRock-     
    Position(s)    Time        Advised Funds     
Name, Address    Held with    Served as        and Portfolios    Public 
and Year of Birth    Funds    a Director2    Principal Occupation(s) During Past 5 Years    Overseen    Directorships 

 
 
 
 
 
 
     Non-Interested Directors1 (concluded)                 

 
 
 
 
 
James T. Flynn    Director and    Since    Formerly Chief Financial Officer of JP Morgan & Co., Inc. from 1990    112 Funds    None 
40 East 52nd Street    Member of    2007    to 1995.    109 Portfolios     
New York, NY 10022    the Audit                 
1939    Committee                 

 
 
 
 
 
Jerrold B. Harris    Director    Since    Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific    112 Funds    BlackRock-Kelso 
40 East 52nd Street        2007    equipment) since 2000.    109 Portfolios    Capital Corp. 
New York, NY 10022                     
1942                     

 
 
 
 
 
R. Glenn Hubbard    Director    Since    Dean of Columbia Business School since 2004; Columbia faculty    113 Funds    ADP (data and 
40 East 52nd Street        2007    member since 1988; Formerly Co-Director of Columbia Business    110 Portfolios    information services), 
New York, NY 10022            School's Entrepreneurship Program from 1997 to 2004; Visiting        KKR Financial 
1958            Professor at the John F. Kennedy School of Government at Harvard        Corporation (finance), 
            University and the Harvard Business School since 1985 and at the        Duke Realty (real 
            University of Chicago since 1994; Formerly Chairman of the U.S.        estate), Metropolitan 
            Council of Economic Advisers under the President of the United        Life Insurance Com- 
            States from 2001 to 2003.        pany (insurance), 
                    Information Services 
                    Group (media/ 
                    technology) 

 
 
 
 
 
 
W. Carl Kester    Director and    Since    Mizuho Financial Group Professor of Finance, Harvard Business    112 Funds    None 
40 East 52nd Street    Member of    2007    School. Deputy Dean for Academic Affairs since 2006; Unit Head,    109 Portfolios     
New York, NY 10022    the Audit        Finance, Harvard Business School, from 2005 to 2006; Senior         
1951    Committee        Associate Dean and Chairman of the MBA Program of Harvard         
            Business School, from 1999 to 2005; Member of the faculty of         
            Harvard Business School since 1981; Independent Consultant         
            since 1978.         

 
 
 
 
 
 
Robert S. Salomon, Jr.    Director and    Since    Formerly Principal of STI Management LLC (investment adviser) from    112 Funds    None 
40 East 52nd Street    Member of    2007    1994 to 2005.    109 Portfolios     
New York, NY 10022    the Audit                 
1936    Committee                 
       
 
 
 

1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
    2 Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the 
       various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, 
       although the chart shows certain directors as joining the Fund’s board in 2007, each director first became a member of the board of directors 
       of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III since 1999; Richard E. Cavanagh since 1994; Kent Dixon 
       since 1988; Frank J. Fabozzi since 1988; Kathleen F. Feldstein since 2005; James T. Flynn since 1996; Jerrold B. Harris since 1999; R. Glenn 
       Hubbard since 2004; W. Carl Kester since 1998; Karen . Robards since 1998 and Robert S. Salomon, Jr. since 1996.     

 
 
 
     Interested Directors3                     

 
 
 
 
 
 
Richard S. Davis    Director    Since    Managing Director, BlackRock, Inc. since 2005; Formerly Chief    185 Funds    None 
40 East 52nd Street        2007    Executive Officer, State Street Research & Management Company    295 Portfolios     
New York, NY 10022            from 2000 to 2005; Formerly Chairman of the Board of Trustees,         
1945            State Street Research Mutual Funds from 2000 to 2005; Formerly         
            Chairman, SSR Realty from 2000 to 2004.         

 
 
 
 
 
 
Henry Gabbay    Director    Since    Consultant, BlackRock, Inc. since 2007; Formerly Managing Director,    184 Funds    None 
40 East 52nd Street        2007    BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative    294 Portfolios     
New York, NY 10022            Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President         
1947            of BlackRock Funds and BlackRock Bond Allocation Target Shares from         
            2005 to 2007; Formerly Treasurer of certain closed-end funds in the         
BlackRock fund complex from 1989 to 2006.

3      Messrs. Davis and Gabbay are both “interested persons,” as defined in the Investment Company Act of 1940, of the Funds based on their positions with BlackRock, Inc. and its affiliates. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
 

ANNUAL REPORT

MAY 31, 2008

35


Officers and Directors (concluded)         
 
    Position(s)                 
Name, Address    Held with    Length of             
and Year of Birth    Funds    Time Served    Principal Occupation(s) During Past 5 Years         

 
 
 
 
 
 
Fund Officers1                     

 
 
 
 
 
Donald C. Burke    Fund    Since 2007    Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment 
40 East 52nd Street    President        Managers, L.P. (“MLIM”) and Fund Asset Management, L .P.(“FAM”) in 2006; First Vice President thereof from 
New York, NY 10022    and Chief        1997 to 2005; Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997. 
1960    Executive                 
    Officer                 

 
 
 
 
 
Anne F. Ackerley    Vice    Since 2007    Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRock’s U.S. Retail Group since 
40 East 52nd Street    President        2006; Head of BlackRock’s Mutual Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 
New York, NY 10022            and from 1988 to 2000, most recently as First Vice President and Operating Officer of the Mergers and 
1962            Acquisitions Group.         

 
 
 
 
 
Neal J. Andrews    Chief    Since 2007    Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of 
40 East 52nd Street    Financial        Fund Accounting and Administration at PFPC Inc. from 1992 to 2006.     
New York, NY 10022    Officer                 
1966                     

 
 
 
 
 
Jay M. Fife    Treasurer    Since 2007    Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the 
40 East 52nd Street            MLIM/FAM advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. 
New York, NY 10022                     
1970                     

 
 
 
 
 
Brian P. Kindelan    Chief    Since 2007    Chief Compliance Officer of the BlackRock-advised Funds since 2007; Anti-Money Laundering Officer of the Funds 
40 East 52nd Street    Compliance        since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of 
New York, NY 10022    Officer of        BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior Counsel thereof from 1998 to 2000; 
1959    the Funds        Formerly Senior Counsel of The PNC Bank Corp. from 1995 to 1998.     

 
 
 
 
Howard Surloff    Secretary    Since 2007    Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly 
40 East 52nd Street            General Counsel (U.S.) of Goldman Sachs Asset Management, L from 1993 to 2006.     
New York, NY 10022                     
1965                     
   
 
 
 
 
    1 Officers of the Funds serve at the pleasure of the Board of Directors.         

 
 
 
Custodian                 Transfer Agent                         Accounting Agent    Independent Registered    Legal Counsel 
State Street Bank and                 Common Stock:                         State Street Bank and    Public Accounting Firm    Skadden, Arps, Slate, 
Trust Company                 Computershare Trust                         Trust Company    Deloitte & Touche LLP    Meagher & Flom LLP 
Boston, MA 02109                 Company, N.A.                         Princeton, NJ 08540    Princeton, NJ 08540    New York, NY 10036 
                 Providence, RI 02940         
 
                 Preferred Stock:             
                 BNY Mellon Shareowner Services         
                 Jersey City, NJ 07310         

36 ANNUAL REPORT

MAY 31, 2008


Additional Information

Fund Certification

The Funds listed for trading on the New York Stock Exchange (“NYSE”)
have filed with the NYSE their annual chief executive officer certification
regarding compliance with the NYSE’s listing standards. Each Fund filed

with the Securities and Exchange Commission (“SEC”) the certification of
their chief executive officer and chief financial officer required by section
302 of the Sabanes-Oxley Act.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
Forms N-Q are available on the SEC’s website at http://www.sec.gov and
may also be reviewed and copied at the SEC’s Public Reference Room

in Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330. The Funds’ Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’
websites or shareholders can sign up for e-mail notifications of quarterly
statements, annual and semi-annual reports by enrolling in the Funds’
electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

  General Information

The Funds do not make available copies of their Statements of Additional
Information because the Funds’ shares are not continuously offered,
which means that the Statements of Additional Information of the Funds
have not been updated after completion of the Funds’ offering and the
information contained in the Funds’ Statements of Additional Information
may have become outdated.

During the period, there were no material changes in the Funds’ invest-
ment objectives or policies or to the Funds’ charters or by-laws that were
not approved by the shareholders or in the principal risk factors associ-
ated with investment in the Funds. There have been no changes in the
persons who are primarily responsible for the day-to-day management of
the Funds’ portfolios.

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and it is intended to reduce expenses and elimi-
nate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you
instruct us otherwise. If you do not want the mailing of these documents
to be combined with those for other members of your household, please
contact the Funds at (800) 441-7762.

Quarterly performance, semi-annual and annual reports and other
information regarding the Funds may be found on BlackRock’s website,
which can be accessed at http://www.blackrock.com. This reference
to BlackRock’s website is intended to allow investors public access to
information regarding the Funds and does not, and is not intended to,
incorporate BlackRock’s website into this report.

ANNUAL REPORT

MAY 31, 2008

37


Additional Information (concluded)

Deposit Securities

Effective May 30, 2008, following approval by the Funds’ Boards and the
applicable ratings agencies, the definition of “Deposited Securities” in the
Funds’ Articles Supplementary was amended as follows in order to facili-
tate the redemption of the Funds’ Preferred Stock. The following phrase
was added to the definition of “Deposit Securities” found in the Funds’
Articles Supplementary:

; provided, however, that solely in connection with any redemption of
AMPS, the term Deposit Securities shall include (i) any committed
financing pursuant to a credit agreement, reverse repurchase agree-
ment facility or similar credit arrangement, in each case which makes
available to the Corporation, no later than the day preceding the

applicable redemption date, cash in an amount not less than the
aggregate amount due to Holders by reason of the redemption of
their shares of AMPS on such redemption date; and (ii) cash
amounts due and payable to the Corporation out of a sale of its
securities if such cash amount is not less than the aggregate amount
due to Holders by reason of the redemption of their shares of AMPS
on such redemption date and such sale will be settled not later than
the day preceding the applicable redemption date.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and
former fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-
related rights beyond what is set forth below, then BlackRock will comply
with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information
we receive from you or, if applicable, your financial intermediary, on appli-
cations, forms or other documents; (ii) information about your transac-
tions with us, our affiliates, or others; (iii) information we receive from a
consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.

We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access to
non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are
designed to protect the non-public personal information of its Clients,
including procedures relating to the proper storage and disposal of
such information.

Proxy Voting Policy