0001171200-11-001141.txt : 20111222 0001171200-11-001141.hdr.sgml : 20111222 20111222132846 ACCESSION NUMBER: 0001171200-11-001141 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20111031 FILED AS OF DATE: 20111222 DATE AS OF CHANGE: 20111222 EFFECTIVENESS DATE: 20111222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC. CENTRAL INDEX KEY: 0000890393 IRS NUMBER: 223196060 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-07080 FILM NUMBER: 111276861 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 BUSINESS PHONE: 6092825284 MAIL ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 FORMER COMPANY: FORMER CONFORMED NAME: BLACKROCK MUNIYIELD MICHIGAN INSURED FUND, INC. DATE OF NAME CHANGE: 20070611 FORMER COMPANY: FORMER CONFORMED NAME: MUNIYIELD MICHIGAN INSURED FUND INC DATE OF NAME CHANGE: 20020620 FORMER COMPANY: FORMER CONFORMED NAME: MUNIYIELD MICHIGAN INSURED FUND II INC DATE OF NAME CHANGE: 20020620 N-Q 1 i00538_miy-nq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-07080

 

Name of Fund: BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Michigan Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 07/31/2012

 

Date of reporting period: 10/31/2011

 

Item 1 – Schedule of Investments

 


 

 

 

 

Schedule of Investments October 31, 2011 (Unaudited)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan — 137.4%

 

 

 

 

 

 

 

Corporate — 7.0%

 

 

 

 

 

 

 

Delta County EDC, Refunding RB, Mead
Westvaco-Escanaba, Series B, AMT,
6.45%, 4/15/12 (a)

 

$

1,500

 

$

1,542,195

 

Dickinson County EDC Michigan,
Refunding RB, International Paper Co.
Project, Series A, 5.75%, 6/01/16

 

 

3,900

 

 

3,976,167

 

Monroe County EDC Michigan,
Refunding RB, Detroit Edison Co.
Project, Series AA (NPFGC), 6.95%,
9/01/22

 

 

10,695

 

 

13,570,351

 

 

 

 

 

 

 

19,088,713

 

County/City/Special District/School District — 38.8%

 

 

 

 

 

 

 

Adrian City School District Michigan, GO
(AGM) (a):

 

 

 

 

 

 

 

5.00%, 5/01/14

 

 

2,000

 

 

2,211,700

 

5.00%, 5/01/14

 

 

1,600

 

 

1,769,360

 

Anchor Bay School District, GO,
Refunding (Q-SBLF):

 

 

 

 

 

 

 

4.13%, 5/01/25

 

 

3,000

 

 

3,010,530

 

4.25%, 5/01/26

 

 

1,800

 

 

1,811,196

 

4.38%, 5/01/27

 

 

960

 

 

970,800

 

4.38%, 5/01/28

 

 

600

 

 

602,784

 

4.50%, 5/01/29

 

 

900

 

 

908,316

 

Avondale School District Michigan, GO (AGC):

 

 

 

 

 

 

 

4.00%, 5/01/20

 

 

1,000

 

 

1,027,410

 

4.30%, 5/01/22

 

 

400

 

 

413,472

 

Bay City School District Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/36

 

 

6,115

 

 

6,253,321

 

Birmingham City School District
Michigan, GO, School Building & Site
(AGM), 5.00%, 11/01/33

 

 

1,000

 

 

1,022,610

 

Charter Township of Canton Michigan,
GO, Capital Improvement (AGM):

 

 

 

 

 

 

 

5.00%, 4/01/25

 

 

1,840

 

 

1,947,125

 

5.00%, 4/01/26

 

 

2,000

 

 

2,101,440

 

5.00%, 4/01/27

 

 

500

 

 

522,880

 

City of Oak Park Michigan, GO, Street
Improvement (NPFGC), 5.00%,
5/01/30

 

 

500

 

 

518,530

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(continued)

 

 

 

 

 

 

 

Comstock Park Public Schools, GO,
School Building & Site,
Series B (Q-SBLF):

 

 

 

 

 

 

 

5.50%, 5/01/36

 

$

750

 

$

801,480

 

5.50%, 5/01/41

 

 

1,355

 

 

1,444,782

 

County of Genesee Michigan, GO,
Refunding, Series A (NPFGC), 5.00%,
5/01/19

 

 

600

 

 

651,942

 

County of Genesee Michigan, GO, Water
Supply System (NPFGC), 5.13%,
11/01/33

 

 

1,000

 

 

1,010,680

 

Dearborn Brownfield Redevelopment
Authority, GO, Limited Tax,
Redevelopment, Series A (AGC),
5.50%, 5/01/39

 

 

3,300

 

 

3,512,421

 

Detroit City School District Michigan,
GO, School Building & Site
Improvement (FGIC):

 

 

 

 

 

 

 

Series A, 5.38%, 5/01/13 (a)

 

 

1,300

 

 

1,394,939

 

Series B, 5.00%, 5/01/28

 

 

3,100

 

 

3,116,430

 

Eaton Rapids Public Schools Michigan,
GO, School Building & Site (AGM):

 

 

 

 

 

 

 

5.25%, 5/01/20

 

 

1,325

 

 

1,432,537

 

5.25%, 5/01/21

 

 

1,675

 

 

1,806,253

 

Fraser Public School District, GO, School
Building & Site (AGM), 5.00%,
5/01/25

 

 

2,000

 

 

2,119,080

 

Gibraltar School District Michigan, GO,
School Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

 

2,940

 

 

3,251,199

 

(NPFGC), 5.00%, 5/01/28

 

 

710

 

 

726,053

 

Goodrich Area School District, GO,
School Building & Site (Q-SBLF):

 

 

 

 

 

 

 

5.50%, 5/01/32

 

 

600

 

 

649,344

 

5.50%, 5/01/36

 

 

1,200

 

 

1,279,512

 

5.50%, 5/01/41

 

 

1,575

 

 

1,684,352

 

Grand Blanc Community Schools
Michigan, GO (NPFGC), 5.63%,
11/01/11 (a)

 

 

1,100

 

 

1,100,000

 

Grand Rapids Building Authority
Michigan, RB, Series A (AMBAC) (a):

 

 

 

 

 

 

 

5.50%, 10/01/12

 

 

435

 

 

455,732

 

5.50%, 10/01/12

 

 

600

 

 

628,596

 


 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDC

Economic Development Corp.

FGIC

Financial Guaranty Insurance Co.

GAB

Grant Anticipation Bonds

GO

General Obligation Bonds

HDA

Housing Development Authority

NPFGC

National Public Finance Guarantee Corp.

Q-SBLF

Qualified School Bond Loan Fund

RB

Revenue Bonds


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

OCTOBER 31, 2011

1




 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(continued)

 

 

 

 

 

 

 

Gull Lake Community School District,
GO, Refunding (AGM), 4.00%,
5/01/26

 

$

995

 

$

999,925

 

Gull Lake Community School District
Michigan, GO, School Building & Site
(AGM), 5.00%, 5/01/14 (a)

 

 

3,625

 

 

4,013,491

 

Harper Creek Community School District
Michigan, GO, Refunding (AGM),
5.00%, 5/01/22

 

 

1,125

 

 

1,226,734

 

Harper Woods School District Michigan,
GO, Refunding, School Building & Site
(NPFGC), 5.00%, 5/01/34

 

 

430

 

 

437,065

 

Hudsonville Public Schools, GO, School
Building & Site (Q-SBLF), 5.25%,
5/01/41

 

 

1,000

 

 

1,057,460

 

Jenison Public Schools Michigan, GO,
Building & Site (NPFGC), 5.50%,
5/01/12 (a)

 

 

1,575

 

 

1,616,454

 

L’Anse Creuse Public Schools Michigan,
GO, School Building & Site (AGM):

 

 

 

 

 

 

 

5.00%, 5/01/12

 

 

650

 

 

664,482

 

5.00%, 5/01/24

 

 

1,000

 

 

1,077,180

 

5.00%, 5/01/25

 

 

1,525

 

 

1,630,240

 

5.00%, 5/01/26

 

 

1,600

 

 

1,702,112

 

5.00%, 5/01/35

 

 

3,000

 

 

3,059,760

 

Lansing Building Authority Michigan, GO,
Series A (NPFGC), 5.38%, 6/01/13 (a)

 

 

1,510

 

 

1,628,520

 

Lincoln Consolidated School District
Michigan, GO, Refunding (NPFGC),
4.63%, 5/01/28

 

 

5,000

 

 

5,086,300

 

Livonia Public Schools School District
Michigan, GO, Refunding, Series A
(NPFGC), 5.00%, 5/01/24

 

 

1,000

 

 

1,039,640

 

Montrose Community Schools, GO
(NPFGC), 6.20%, 5/01/17

 

 

1,000

 

 

1,196,350

 

New Haven Community Schools
Michigan, GO, Refunding, School
Building & Site (AGM), 5.00%,
5/01/23

 

 

1,500

 

 

1,588,260

 

Orchard View Schools Michigan, GO,
School Building & Site (NPFGC),
5.00%, 11/01/13 (a)

 

 

5,320

 

 

5,796,140

 

Pennfield School District Michigan, GO,
School Building & Site (a):

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14

 

 

765

 

 

844,973

 

(NPFGC), 5.00%, 5/01/14

 

 

605

 

 

668,247

 

Reed City Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/14 (a)

 

 

1,425

 

 

1,577,717

 

Rochester Community School District,
GO (NPFGC), 5.00%, 5/01/19

 

 

435

 

 

487,174

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(concluded)

 

 

 

 

 

 

 

Romulus Community Schools, GO,
Refunding (AGM, Q-SBLF):

 

 

 

 

 

 

 

4.00%, 5/01/24

 

$

1,100

 

$

1,085,832

 

4.13%, 5/01/25

 

 

1,150

 

 

1,134,188

 

Romulus Community Schools, GO,
Refunding (AGM, Q-SBLF) (concluded):

 

 

 

 

 

 

 

4.25%, 5/01/26

 

 

1,200

 

 

1,188,468

 

4.25%, 5/01/27

 

 

1,200

 

 

1,177,284

 

4.50%, 5/01/29

 

 

1,025

 

 

1,018,860

 

Southfield Public Schools Michigan, GO,
School Building & Site, Series B
(AGM), 5.00%, 5/01/14 (a)

 

 

2,000

 

 

2,214,340

 

Thornapple Kellogg School District
Michigan, GO, School Building & Site
(NPFGC), 5.00%, 5/01/32

 

 

2,500

 

 

2,584,900

 

Van Dyke Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/28

 

 

1,250

 

 

1,318,000

 

West Bloomfield School District
Michigan, GO, Refunding (NPFGC):

 

 

 

 

 

 

 

5.50%, 5/01/17

 

 

1,710

 

 

1,739,002

 

5.50%, 5/01/18

 

 

1,225

 

 

1,243,314

 

Zeeland Public Schools Michigan, GO,
School Building & Site (NPFGC),
5.00%, 5/01/29

 

 

1,600

 

 

1,632,736

 

 

 

 

 

 

 

105,891,954

 

Education — 6.8%

 

 

 

 

 

 

 

Eastern Michigan University, Refunding
RB, General (AMBAC), 6.00%,
6/01/20

 

 

435

 

 

436,623

 

Grand Valley State University Michigan,
RB, General (NPFGC), 5.50%,
2/01/18

 

 

2,070

 

 

2,271,411

 

Michigan Higher Education Facilities
Authority, RB, Limited Obligation,
Hillsdale College Project, 5.00%,
3/01/35

 

 

1,720

 

 

1,721,754

 

Michigan Higher Education Facilities
Authority, Refunding RB, Limited
Obligation, Creative Studies (a):

 

 

 

 

 

 

 

5.85%, 6/01/12

 

 

1,235

 

 

1,274,434

 

5.90%, 6/01/12

 

 

1,145

 

 

1,181,903

 

Michigan Higher Education Student
Loan Authority, RB, Student Loan,
Series XVII-Q, AMT (AMBAC), 5.00%,
3/01/31

 

 

3,000

 

 

2,955,930

 

Michigan State University, Refunding
RB, General, Series C, 5.00%,
2/15/40

 

 

4,700

 

 

4,953,894

 


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

OCTOBER 31, 2011

2




 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Education (concluded)

 

 

 

 

 

 

 

Saginaw Valley State University
Michigan, Refunding RB, General
(NPFGC), 5.00%, 7/01/24

 

$

2,100

 

$

2,143,176

 

Western Michigan University, Refunding
RB, General, 5.25%, 11/15/40

 

 

1,500

 

 

1,564,170

 

 

 

 

 

 

 

18,503,295

 

Health — 22.6%

 

 

 

 

 

 

 

Dickinson County Healthcare System,
Refunding RB, Series A (ACA), 5.80%,
11/01/24

 

 

3,100

 

 

3,099,659

 

Flint Hospital Building Authority
Michigan, Refunding RB, Hurley
Medical Center (ACA):

 

 

 

 

 

 

 

6.00%, 7/01/20

 

 

1,125

 

 

1,125,068

 

Series A, 5.38%, 7/01/20

 

 

615

 

 

590,425

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

4,750

 

 

4,858,110

 

Kent Hospital Finance Authority
Michigan, RB, Spectrum Health,
Series A, 5.00%, 11/15/29

 

 

4,500

 

 

4,592,520

 

Kent Hospital Finance Authority
Michigan, Refunding RB, Butterworth,
Series A (NPFGC), 7.25%, 1/15/13 (b)

 

 

1,170

 

 

1,205,685

 

Michigan State Finance Authority,
Refunding RB, Trinity Health Credit:

 

 

 

 

 

 

 

5.00%, 12/01/31

 

 

3,100

 

 

3,129,233

 

5.00%, 12/01/35

 

 

3,100

 

 

3,107,161

 

Michigan State Hospital Finance
Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior
Credit Group, 5.00%,
11/15/25

 

 

3,700

 

 

3,939,057

 

Hospital, MidMichigan Obligation
Group, Series A (AMBAC), 5.50%,
4/15/18

 

 

2,530

 

 

2,555,705

 

McLaren Health Care, Series
C, 5.00%, 8/01/35

 

 

1,000

 

 

997,170

 

MidMichigan Obligation
Group, Series A, 5.00%,
4/15/26

 

 

620

 

 

623,670

 

MidMichigan Obligation
Group, Series A, 5.00%,
4/15/36

 

 

3,550

 

 

3,414,283

 

Trinity Health Credit, Series C,
5.38%, 12/01/30

 

 

3,410

 

 

3,434,245

 

Michigan State Hospital Finance
Authority, Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System,
Series A, 5.25%, 11/15/46

 

 

2,500

 

 

2,417,600

 

Hospital, Crittenton, Series A,
5.63%, 3/01/27

 

 

2,050

 

 

2,056,211

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%, 7/15/21

 

 

600

 

 

619,908

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

Michigan State Hospital Finance
Authority, Refunding RB (concluded):

 

 

 

 

 

 

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%,
7/15/25

 

$

3,260

 

$

3,254,295

 

Hospital, Oakwood Obligation
Group, Series A, 5.00%, 7/15/37

 

 

630

 

 

581,988

 

Hospital, Sparrow Obligated,
5.00%, 11/15/31

 

 

3,100

 

 

3,049,842

 

Mclaren Health Care, 5.75%,
5/15/38

 

 

4,500

 

 

4,668,390

 

Trinity Health Credit, Series A,
6.25%, 12/01/28

 

 

930

 

 

1,031,900

 

Trinity Health Credit, Series A,
6.50%, 12/01/33

 

 

1,000

 

 

1,114,980

 

Trinity Health Credit, Series C,
5.38%, 12/01/12 (a)

 

 

1,345

 

 

1,418,007

 

Trinity Health Credit, Series D,
5.00%, 8/15/34

 

 

3,100

 

 

3,126,350

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

 

1,000

 

 

1,186,060

 

Sturgis Building Authority, RB, Sturgis
Hospital Project (NPFGC), 4.75%,
10/01/34

 

 

475

 

 

469,100

 

 

 

 

 

 

 

61,666,622

 

Housing — 7.2%

 

 

 

 

 

 

 

Michigan State HDA, RB:

 

 

 

 

 

 

 

Deaconess Tower AMT (Ginnie
Mae), 5.25%, 2/20/48

 

 

1,000

 

 

1,004,380

 

Series A, 4.75%, 12/01/25

 

 

4,400

 

 

4,480,564

 

Series A, 6.00%, 10/01/45

 

 

6,990

 

 

6,991,538

 

Series A, AMT (NPFGC), 5.30%,
10/01/37

 

 

130

 

 

130,014

 

Williams Pavilion, AMT (Ginnie
Mae), 4.75%, 4/20/37

 

 

3,815

 

 

3,721,342

 

Michigan State HDA, Refunding RB,
Series A, 6.05%, 10/01/41

 

 

3,260

 

 

3,394,181

 

 

 

 

 

 

 

19,722,019

 

State — 17.0%

 

 

 

 

 

 

 

Michigan Municipal Bond Authority, RB,
Clean Water Revolving-Pooled, 5.00%,
10/01/27

 

 

1,240

 

 

1,381,372

 

Michigan Municipal Bond Authority, RB:

 

 

 

 

 

 

 

Local Government Loan Program,
Group A (AMBAC), 5.50%, 11/01/20

 

 

1,065

 

 

1,065,160

 

State Clean Water, 5.00%, 10/01/27

 

 

1,250

 

 

1,337,475

 

Michigan Municipal Bond Authority,
Refunding RB, Local Government, Charter
County Wayne, Series B (AGC):

 

 

 

 

 

 

 

5.00%, 11/01/14

 

 

2,400

 

 

2,632,392

 

5.00%, 11/01/15

 

 

1,500

 

 

1,663,620

 

5.00%, 11/01/16

 

 

500

 

 

564,430

 

5.38%, 11/01/24

 

 

125

 

 

138,764

 


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

OCTOBER 31, 2011

3




 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (continued)

 

 

 

 

 

 

 

State (concluded)

 

 

 

 

 

 

 

Michigan State Building Authority, RB,
Facilities Program, Series H (AGM),
5.00%, 10/15/26

 

$

4,500

 

$

4,819,815

 

Michigan State Building Authority,
Refunding RB, Facilities Program:

 

 

 

 

 

 

 

Series I, 6.25%, 10/15/38

 

 

3,900

 

 

4,352,946

 

Series I, 5.50%, 10/15/45

 

 

1,250

 

 

1,346,275

 

Series I (AGC), 5.25%, 10/15/24

 

 

4,000

 

 

4,413,120

 

Series I (AGC), 5.25%,
10/15/25

 

 

2,000

 

 

2,194,300

 

Series I (AGC), 5.25%,
10/15/26

 

 

600

 

 

652,794

 

Series II (NPFGC), 5.00%,
10/15/29

 

 

3,500

 

 

3,556,560

 

Michigan State Finance Authority, RB,
Local Government Program, Series F:

 

 

 

 

 

 

 

5.00%, 4/01/31

 

 

1,000

 

 

990,150

 

5.25%, 10/01/41

 

 

6,085

 

 

6,084,695

 

Michigan Strategic Fund, RB, Cadillac
Place Office Building Project, 5.25%,
10/15/31

 

 

1,500

 

 

1,558,905

 

State of Michigan, RB, GAB (AGM),
5.25%, 9/15/27

 

 

5,250

 

 

5,615,715

 

State of Michigan, COP (AMBAC), 5.55%,
6/01/22 (b)(c)

 

 

3,000

 

 

2,163,420

 

 

 

 

 

 

 

46,531,908

 

Transportation — 13.4%

 

 

 

 

 

 

 

Wayne County Airport Authority, RB,
Detroit Metropolitan Wayne County
Airport, AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

 

7,525

 

 

7,615,526

 

5.25%, 12/01/26

 

 

6,300

 

 

6,348,006

 

5.00%, 12/01/34

 

 

9,160

 

 

8,508,358

 

Wayne County Airport Authority,
Refunding RB, AMT (AGC):

 

 

 

 

 

 

 

5.75%, 12/01/25

 

 

4,000

 

 

4,196,360

 

5.75%, 12/01/26

 

 

1,000

 

 

1,041,810

 

5.38%, 12/01/32

 

 

8,700

 

 

8,747,937

 

 

 

 

 

 

 

36,457,997

 

Utilities — 24.6%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (AGM),
7.00%, 7/01/36

 

 

3,000

 

 

3,534,750

 

Second Lien, Series B (NPFGC),
5.00%, 7/01/13 (a)

 

 

1,550

 

 

1,668,048

 

Second Lien, Series B (NPFGC),
5.00%, 7/01/34

 

 

2,420

 

 

2,276,058

 

Senior Lien, Series A (AGM), 5.00%,
7/01/25

 

 

4,000

 

 

4,047,840

 

Senior Lien, Series A (NPFGC),
5.00%, 7/01/34

 

 

6,900

 

 

6,901,725

 

Series B (NPFGC), 5.25%, 7/01/13 (a)

 

 

11,790

 

 

12,736,737

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (AGM),
5.00%, 7/01/29

 

 

10,570

 

 

10,591,034

 

(FGIC), 6.25%, 7/01/12 (b)

 

 

280

 

 

289,814

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

Utilities (concluded)

 

 

 

 

 

 

 

City of Grand Rapids Michigan, RB
(NPFGC), 5.00%, 1/01/34

 

$

11,385

 

$

11,617,596

 

City of Port Huron Michigan, RB, Water
Supply:

 

 

 

 

 

 

 

5.25%, 10/01/31

 

 

310

 

 

315,989

 

5.63%, 10/01/40

 

 

1,000

 

 

1,029,430

 

Lansing Board of Water & Light, RB,
Series A:

 

 

 

 

 

 

 

5.00%, 7/01/27

 

 

1,970

 

 

2,126,556

 

5.00%, 7/01/31

 

 

4,230

 

 

4,458,505

 

5.00%, 7/01/37

 

 

2,065

 

 

2,179,897

 

5.50%, 7/01/41

 

 

3,000

 

 

3,302,040

 

 

 

 

 

 

 

67,076,019

 

Total Municipal Bonds in Michigan

 

 

 

 

 

374,938,527

 

 

 

 

 

 

 

 

 

Guam — 1.1%

 

 

 

 

 

 

 

County/City/Special District/School District — 0.5%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,421,252

 

Utilities — 0.6%

 

 

 

 

 

 

 

Guam Power Authority, Refunding RB,
Series A (AGM), 5.00%, 10/01/37

 

 

1,565

 

 

1,613,765

 

Total Municipal Bonds in Guam

 

 

 

 

 

3,035,017

 

 

 

 

 

 

 

 

 

Puerto Rico — 6.0%

 

 

 

 

 

 

 

Housing — 0.8%

 

 

 

 

 

 

 

Puerto Rico Housing Finance Authority,
Refunding RB, Subordinate, Capital
Fund Modernization, 5.13%,
12/01/27

 

 

2,000

 

 

2,072,560

 

State — 4.1%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority,
Refunding RB, Government Facilities,
Series M-3 (NPFGC), 6.00%, 7/01/27

 

 

2,000

 

 

2,116,700

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A
(NPFGC) (c):

 

 

 

 

 

 

 

5.18%, 8/01/43

 

 

12,500

 

 

1,697,625

 

5.00%, 8/01/46

 

 

20,000

 

 

2,214,000

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, First Sub-Series C
(AGM), 5.13%, 8/01/42

 

 

5,100

 

 

5,235,252

 

 

 

 

 

 

 

11,263,577

 

Transportation — 1.1%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation
Authority, Refunding RB, Series CC
(AGC), 5.50%, 7/01/31

 

 

2,750

 

 

2,967,443

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

16,303,580

 

Total Municipal Bonds – 144.5%

 

 

 

 

 

394,277,124

 


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

OCTOBER 31, 2011

4




 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (d)

 

Par
(000)

 

Value

 

Michigan — 11.8%

 

 

 

 

 

 

 

County/City/Special District/School District — 4.3%

 

 

 

 

 

 

 

Lakewood Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/37

 

$

6,470

 

$

6,960,458

 

Portage Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%,
5/01/31

 

 

4,650

 

 

4,846,277

 

 

 

 

 

 

 

11,806,735

 

Education — 7.5%

 

 

 

 

 

 

 

Saginaw Valley State University,
Refunding RB, General (AGM), 5.00%,
7/01/31

 

 

7,500

 

 

7,840,875

 

Wayne State University, Refunding RB,
General (AGM), 5.00%, 11/15/35

 

 

12,210

 

 

12,686,556

 

 

 

 

 

 

 

20,527,431

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
11.8%

 

 

 

 

 

32,334,166

 

Total Long-Term Investments
(Cost – $412,699,333) – 156.3%

 

 

 

 

 

426,611,290

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

BIF Michigan Municipal Money Fund,
0.00% (e)(f)

 

 

1,243,741

 

 

1,243,741

 

Total Short-Term Securities
(Cost - $1,243,741) – 0.5%

 

 

 

 

 

1,243,741

 

Total Investments
(Cost - $413,943,074*) – 156.8%

 

 

 

 

 

427,855,031

 

Other Assets Less Liabilities – 2.2%

 

 

 

 

 

5,894,887

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (5.9)%

 

 

 

 

 

(16,204,493

)

VRDP Shares, at Liquidation Value – (53.1)%

 

 

 

 

 

(144,600,000

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

272,945,425

 


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

397,935,368

 

Gross unrealized appreciation

 

$

17,689,638

 

Gross unrealized depreciation

 

 

(3,959,975

)

Net unrealized appreciation

 

$

13,729,663

 


 

 

(a)

US 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)

Security is collateralized by Municipal or US Treasury obligations.

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

(d)

Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

(e)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
July 31,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

Income

 

 

BIF Michigan
Municipal
Money Fund

 

 

6,928,754

 

 

(5,685,013

)

 

1,243,741

 

$

 


 

 

 

(f)

Represents the current yield as of report date.

 

 

 

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

 

 

 

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

 

 

 

 

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

426,611,290

 

 

 

$

426,611,290

 

Short-Term
Investments

 

$

1,243,741

 

 

 

 

 

 

1,243,741

 

Total

 

$

1,243,741

 

$

426,611,290

 

 

 

$

427,855,031

 


 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND, INC.

OCTOBER 31, 2011

5


Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

Date: December 21, 2011

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

 

By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

Date: December 21, 2011

 

 

 

By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniYield Michigan Quality Fund, Inc.

 

 

 

 

Date: December 21, 2011

 


EX-99.CERT 2 i00538_ex99-cert.htm

EX-99. CERT

 

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock MuniYield Michigan Quality Fund, Inc., certify that:

1.          I have reviewed this report on Form N-Q of BlackRock MuniYield Michigan Quality Fund, Inc.;

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.          Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.          The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)          designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)          designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)          evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d)          disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.          The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)          all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)          any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 21, 2011

/s/ John M. Perlowski

 

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock MuniYield Michigan Quality Fund, Inc.

 


EX-99. CERT

 

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock MuniYield Michigan Quality Fund, Inc., certify that:

1.          I have reviewed this report on Form N-Q of BlackRock MuniYield Michigan Quality Fund, Inc.;

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.          Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.          The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)          designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)          designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)          evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d)          disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.          The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)          all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)          any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 21, 2011

/s/ Neal J. Andrews

 

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock MuniYield Michigan Quality Fund, Inc.