Exhibit 2

On June 23, 1997, Trust Company Bank (Tel: 407-237-4437), the escrow trustee for
the prerefunded bonds underlying Merrill Lynch Municipal ABS, Inc. Prerefunded
Municipal Certificates, Series 1, Series 2 and Series 3, upon inquiry by the
registrant, reported that no substitution of defeasance obligations in the
escrow for each of the related maturity of bonds has occurred.