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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2003

MERRILL LYNCH PREFERRED CAPITAL TRUST I
(Exact name of Registrant as specified in its certificate of trust)

COMMISSION FILE NO.: 1-7182-01

Delaware 13-7102991
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)

4 World Financial Center
New York, New York 10080
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (212) 449-1000


MERRILL LYNCH PREFERRED FUNDING I, L.P.
(Exact name of Registrant as specified in its
certificate of limited partnership)

COMMISSION FILE NO.: 1-7182-02

Delaware 13-3917686
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)

4 World Financial Center
New York, New York 10080
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (212) 449-1000

The Registrants meet the conditions set forth in General Instruction H (1)(a)
and (b) of Form 10-Q and are therefore filing this form with the reduced
disclosure format.

Indicate by check mark whether the Registrants (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days. Yes |X| No |_|

Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

As of August 7, 2003 no voting stock was held by non-affiliates of the
Registrants.
================================================================================


PART I - FINANCIAL INFORMATION
------------------------------

ITEM 1. FINANCIAL STATEMENTS
--------------------



MERRILL LYNCH PREFERRED CAPITAL TRUST I
CONDENSED BALANCE SHEETS (unaudited)
(dollars in thousands, except per security amounts)
- -----------------------------------------------------------------------------------------------------------------------



JUNE 27, 2003 DECEMBER 27, 2002
------------- -----------------

ASSETS

Investment in partnership preferred securities $ 283,505 $ 283,505
Income receivable 5,493 5,493
---------- ----------
Total Assets $ 288,998 $ 288,998
========== ==========

LIABILITY AND STOCKHOLDERS' EQUITY

Distributions payable $ 5,493 $ 5,493
---------- ----------
Stockholders' equity:

Preferred securities (7 3/4% Trust Originated Preferred Securities;
11,000,000 authorized, issued, and outstanding; $25 liquidation
amount per security) 275,000 275,000

Common securities (7 3/4% Trust Common Securities;
340,208 authorized, issued, and outstanding;
$25 liquidation amount per security) 8,505 8,505
---------- ----------
Total Stockholders' equity 283,505 283,505
---------- ----------

Total Liability and Stockholders' Equity $ 288,998 $ 288,998
========== ==========


See Note to Condensed Financial Statements

2





MERRILL LYNCH PREFERRED CAPITAL TRUST I
CONDENSED STATEMENTS OF EARNINGS (unaudited)
(dollars in thousands)
- ------------------------------------------------------------------------------------------------------------

FOR THE THREE MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------

EARNINGS

Income on partnership preferred securities $ 5,493 $ 5,493
========= =========


FOR THE SIX MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------
EARNINGS

Income on partnership preferred securities $ 10,986 $ 10,986
======== =========








See Note to Condensed Financial Statements


3





MERRILL LYNCH PREFERRED CAPITAL TRUST I
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited)
(dollars in thousands)
- -------------------------------------------------------------------------------------------------

FOR THE SIX MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------

PREFERRED SECURITIES

Balance, beginning and end of period $ 275,000 $ 275,000
---------- ----------

COMMON SECURITIES

Balance, beginning and end of period 8,505 8,505
---------- ----------

UNDISTRIBUTED EARNINGS

Balance, beginning of period - -
Earnings 10,986 10,986
Distributions (5,493) (5,493)
Distributions payable (5,493) (5,493)
---------- ----------
Balance, end of period - -
---------- ----------


Total Stockholders' Equity $ 283,505 $ 283,505
========== ==========


See Note to Condensed Financial Statements

4





MERRILL LYNCH PREFERRED CAPITAL TRUST I
CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
(dollars in thousands)
- -------------------------------------------------------------------------------------------------------------------

FOR THE SIX MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------

CASH FLOWS FROM OPERATING ACTIVITIES:
Earnings $ 10,986 $ 10,986
--------- ---------
Cash provided by operating activities 10,986 10,986
--------- ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions (10,986) (10,986)
--------- ---------
Cash used for financing activities (10,986) (10,986)
--------- ---------

NET CHANGE IN CASH - -

CASH, BEGINNING OF PERIOD - -
--------- ---------
CASH, END OF PERIOD $ - $ -
========= =========



SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:

Preferred and common distributions of $5,328 and $165, respectively, were
accrued at June 27, 2003.



See Note to Condensed Financial Statements

5




MERRILL LYNCH PREFERRED CAPITAL TRUST I
NOTE TO CONDENSED FINANCIAL STATEMENTS (unaudited)
JUNE 27, 2003
- -------------------------------------------------------------------------------


BASIS OF PRESENTATION

These unaudited condensed financial statements should be read in conjunction
with the audited financial statements included in the Annual Report on Form 10-K
of Merrill Lynch Preferred Capital Trust I (the "Trust") for the year ended
December 27, 2002. The December 27, 2002 balance sheet information was derived
from the audited financial statements. The interim financial statements for the
three- and six-month periods are unaudited; however, in the opinion of the
Regular Trustee of the Trust, all adjustments, consisting only of normal
recurring accruals necessary for a fair statement of the results of operations,
have been included.



6





MERRILL LYNCH PREFERRED FUNDING I, L.P.
CONDENSED BALANCE SHEETS (unaudited)
(dollars in thousands)
- ----------------------------------------------------------------------------------------------------------------



JUNE 27, 2003 DECEMBER 27, 2002
------------- -----------------

ASSETS

Cash $ - $ -

Investments:
Affiliate debentures 330,055 330,055
U.S. Treasury bills 3,493 3,499
---------- ----------
Total investments 333,548 333,554

Income receivable 6,395 6,395
---------- ----------
Total Assets $ 339,943 $ 339,949
========== ==========

LIABILITY AND PARTNERS' CAPITAL

Distributions payable $ 6,395 $ 6,395
---------- ----------
Partners' capital:
Limited partnership interest 283,505 283,505
General partnership interest 50,043 50,049
---------- ----------
Total partners' capital 333,548 333,554
---------- ----------

Total Liability and Partners' Capital $ 339,943 $ 339,949
========== ==========


See Note to Condensed Financial Statements

7






MERRILL LYNCH PREFERRED FUNDING I, L.P.
CONDENSED STATEMENTS OF EARNINGS (unaudited)
(dollars in thousands)
- -----------------------------------------------------------------------------------------------


FOR THE THREE MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------

EARNINGS

Interest income:
Affiliate debentures $ 6,395 $ 6,395
U.S. Treasury bills 10 16
---------- ----------
Earnings $ 6,405 $ 6,411
========== ==========



FOR THE SIX MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------
EARNINGS

Interest income:
Affiliate debentures $ 12,790 $ 12,790
U.S. Treasury bills 23 46
---------- ----------
Earnings $ 12,813 $ 12,836
========== ==========









See Note to Condensed Financial Statements


8





MERRILL LYNCH PREFERRED FUNDING I, L.P.
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (unaudited)
(dollars in thousands)
- ------------------------------------------------------------------------------------------------


FOR THE SIX MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------

LIMITED PARTNER'S CAPITAL

Balance, beginning of period $ 283,505 $ 283,505
Net income allocated to limited partner 10,986 10,986
Distributions (5,493) (5,493)
Distributions payable (5,493) (5,493)
---------- ----------
Balance, end of period 283,505 283,505
---------- ----------


GENERAL PARTNER'S CAPITAL

Balance, beginning of period 50,049 50,131
Net income allocated to general partner 1,827 1,850
Distributions (931) (1,028)
Distributions payable (902) (902)
---------- ----------
Balance, end of period 50,043 50,051
---------- ----------

TOTAL PARTNERS' CAPITAL $ 333,548 $ 333,556
========== ==========


See Note to Condensed Financial Statements

9






MERRILL LYNCH PREFERRED FUNDING I, L.P.
CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
(dollars in thousands)
- -------------------------------------------------------------------------------------------------------------------


FOR THE SIX MONTHS ENDED
-----------------------------------

JUNE 27, 2003 JUNE 28, 2002
------------- -------------


CASH FLOWS FROM OPERATING ACTIVITIES:
Earnings $ 12,813 $ 12,836
Accretion of U.S. Treasury bills (23) (46)
--------- ---------
Cash provided by operating activities 12,790 12,790
--------- ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investment securities (3,480) (3,480)
Maturities of investment securities 3,509 3,605
--------- ---------
Cash provided by financing activities 29 125
--------- ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to limited partner (10,986) (10,986)
Distributions to general partner (1,833) (1,929)
--------- ---------
Cash used for financing activities (12,819) (12,915)
--------- ---------

NET CHANGE IN CASH - -

CASH, BEGINNING OF PERIOD - 1
--------- ---------
CASH, END OF PERIOD $ - $ 1
========= =========


SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:

Distributions of $6,395 were accrued at June 27, 2003.





See Note to Condensed Financial Statements

10



MERRILL LYNCH PREFERRED FUNDING I, L.P.
NOTE TO CONDENSED FINANCIAL STATEMENTS (unaudited)
JUNE 27, 2003
- --------------------------------------------------------------------------------

BASIS OF PRESENTATION

These unaudited condensed financial statements should be read in conjunction
with the audited financial statements included in the Annual Report on Form 10-K
of Merrill Lynch Preferred Funding I, L.P. (the "Partnership") for the year
ended December 27, 2002. The December 27, 2002 balance sheet information was
derived from the audited financial statements. The interim financial statements
for the three- and six-month periods are unaudited; however, in the opinion
of the General Partner of the Partnership, all adjustments, consisting only of
normal recurring accruals necessary for a fair statement of the results of
operations, have been included.
11


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

No disclosure is required for this Item pursuant to General Instruction H of
Form 10-Q. There are no material changes in the amount of revenue and expense
items between the most recent fiscal year-to-date period presented and the
corresponding year-to-date period in the preceding fiscal year.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

No disclosure is required for this Item pursuant to General Instruction H of
Form 10-Q.


ITEM 4. CONTROLS AND PROCEDURES

The person who functions as the equivalent of the chief executive officer and
chief financial officer of the Trust and the Partnership has evaluated the
effectiveness of the Trust's and the Partnership's disclosure controls and
procedures as of the end of the period covered by this Form 10-Q. Based on this
evaluation, the person who functions as the equivalent of the chief executive
officer and chief financial officer of the Trust and the Partnership has
concluded that the Trust's and the Partnership's disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934) are effective. There have been no significant changes in
the Trust's and the Partnership's internal control over financial reporting that
occurred during the period covered by this Form 10-Q that have materially
affected, or are reasonably likely to materially affect, the Trust's or the
Partnership's internal control over financial reporting.

12



PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

12 Computation of Ratios of Earnings to Combined Fixed Charges and
Preferred Securities Distributions.

31 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.

32 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(b) Reports on Form 8-K

None.





13




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.


MERRILL LYNCH PREFERRED CAPITAL TRUST I*

By: /s/ AHMASS L. FAKAHANY
---------------------------------------------
Name: Ahmass L. Fakahany
Title: Regular Trustee


MERRILL LYNCH PREFERRED FUNDING I, L.P.*


By: MERRILL LYNCH & CO., INC., as General Partner

By: /s/ AHMASS L. FAKAHANY
---------------------------------------------
Name: Ahmass L. Fakahany
Title: Executive Vice President and
Chief Financial Officer



Date: August 7, 2003
- --------------------

* There is no principal executive officer(s), principal financial officer,
controller, principal accounting officer or board of directors of the
Registrants. The Trustees of the Trust (which include the Regular Trustee, the
Property Trustee and the Delaware Trustee) together exercise all powers and
perform all functions with respect to the Trust.


14


INDEX TO EXHIBITS

EXHIBITS

12 Computation of Ratios of Earnings to Combined Fixed Charges and
Preferred Securities Distributions.

31 Certification pursuant to section 302 of the Sarbanes-Oxley Act of
2002.

32 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

15