BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

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 811-08573

Name of Fund: BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock

MuniHoldings California 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: 07/31/2013

Date of reporting period: 10/31/2012

Item 1 – Schedule of Investments

 
Schedule of Investments October 31, 2012 (Unaudited)  

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par
(000)		      Value  

California — 106.1%

                  

Corporate — 0.6%

      

California Pollution Control Financing Authority, Refunding RB, AMT, 5.00%, 7/01/27

    $ 1,000       $ 1,072,620   

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34

      2,435         2,872,642   
     

 

 

  
        3,945,262   

 

  

County/City/Special District/School District — 24.0%

  

Centinela Valley Union High School District, GO, Election of 2010, Series A, 5.75%, 8/01/41

      9,000         10,678,500   

Chabot-Las Positas Community College District, GO, CAB, Series C (AMBAC) (a):

      

5.16%, 8/01/36

      14,700         4,379,277   

5.28%, 8/01/37

      11,980         3,295,339   

City of Garden Grove California, COP, Series A, Financing Project (AMBAC), 5.50%, 3/01/26

      4,040         4,096,115   

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35

      3,500         4,100,670   

Culver City Redevelopment Finance Authority California, Tax Allocation Bonds, Refunding, Series A (AGM), 5.60%, 11/01/25

      3,750         3,763,500   

Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40

      2,000         2,460,540   

Grossmont-Cuyamaca Community College District Califorina, GO, Refunding, CAB, Election of 2002, Series C (AGC), 4.61%, 8/01/30 (a)

      11,225         4,998,605   

Los Angeles Community College District California, GO, Election of 2003, Series F-1, 5.00%, 8/01/33

      2,500         2,864,175   

Los Angeles Community Redevelopment Agency California, RB, Bunker Hill Project, Series A (AGM), 5.00%, 12/01/27

      7,000         7,515,550   

Merced Union High School District, GO, CAB, Election of 2008, Series C (a):

      

5.14%, 8/01/33

      2,500         871,950   

5.26%, 8/01/36

      4,100         1,193,592   

Orange County Sanitation District, COP, Series A, 5.00%, 2/01/35

      2,500         2,856,350   

Oxnard Union High School District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/35

      10,000         11,226,400   

Port of Oakland, Refunding RB, Series M (NPFGC), 5.38%, 11/01/27

      18,000         18,000,000   

Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33

      5,000         5,604,200   
Municipal Bonds    Par
(000)		      Value  

California (continued)

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

Rio Hondo Community College District, GO, CAB, Election of 2004, Series C, 4.86%, 8/01/36 (a)

    $ 16,650       $ 5,319,675   

San Bernardino Community College District, GO, Election of 2002, Series A, 6.25%, 8/01/33

      310         371,337   

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.50%, 2/01/29

      900         1,030,626   

San Jose Financing Authority, RB, Convention Center:

      

5.75%, 5/01/36

      2,560         2,880,179   

5.75%, 5/01/42

      4,500         5,253,300   

San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/32

      14,800         14,847,656   

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38

      5,635         6,510,397   

Ventura County Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/33

      5,000         5,933,450   

Vista Unified School District California, GO, Series A (AGM), 5.25%, 8/01/25

      10,000         10,000,000   

West Contra Costa County Unified School District California, GO, Election of 2005, Series A (AGM), 5.00%, 8/01/35

      10,000         10,745,100   

West Contra Costa Unified School District California, GO, Election of 2010, Series A, 5.25%, 8/01/41

      5,390         6,165,244   

Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39

      4,300         5,226,951   
     

 

 

  
        162,188,678   

 

  

Education — 13.3%

      

Anaheim City School District California, GO, Election of 2010 (AGM), 6.25%, 8/01/40

      3,750         4,611,825   

California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42

      2,500         2,958,350   

California State University, Refunding RB, Systemwide, Series A:

      

5.00%, 11/01/37

      6,665         7,709,472   

5.00%, 11/01/37

      2,000         2,282,960   

Gavilan Joint Community College District, GO, Election of 2004, Series D:

      

5.50%, 8/01/31

      2,170         2,642,496   

5.75%, 8/01/35

      8,400         10,230,696   
 

 

                 
  BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.       OCTOBER 31, 2012    1

 
Schedule of Investments (continued)  

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par
(000)		      Value  

California (continued)

                  

Education (concluded)

      

Riverside Community College District, GO, Election of 2004, Series C (AGM), 5.00%, 8/01/32

    $ 8,750       $ 9,977,625   

San Diego Community College District, GO, Election of 2006 (AGM), 5.00%, 8/01/30

      8,000         9,122,400   

San Jose Evergreen Community College District, GO, Election of 2010, Series A, 5.00%, 8/01/41

      5,975         6,869,398   

University of California, RB, Series L, 5.00%, 5/15/36

      3,030         3,420,537   

University of California, Refunding RB:

      

General, Series A (AMBAC), 5.00%, 5/15/27

      5,000         5,122,550   

Limited Project, Series G, 5.00%, 5/15/37

      21,390         24,934,964   
     

 

 

  
        89,883,273   

 

  

Health — 15.7%

      

ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:

      

6.25%, 8/01/39

      5,000         5,925,600   

Series A, 6.00%, 8/01/30

      2,270         2,784,677   

California Health Facilities Financing Authority, RB:

      

Adventist Health System, Series A, 5.00%, 3/01/33

      3,190         3,210,575   

Children’s Hospital, Series A, 5.25%, 11/01/41

      8,020         8,925,298   

Kaiser Permanente, Series A, 5.25%, 4/01/39

      6,570         6,991,465   

Providence Health Services,
Series B, 5.50%, 10/01/39

      4,000         4,572,000   

Sutter Health, Series A, 5.25%, 11/15/46

      16,000         17,474,240   

Sutter Health, Series B, 6.00%, 8/15/42

      9,655         11,601,062   

California Health Facilities Financing Authority, Refunding RB:

      

Catholic Healthcare West,
Series A, 6.00%, 7/01/34

      3,700         4,385,647   

Stanford Hospital, Series A-3, 5.50%, 11/15/40

      2,800         3,346,196   

California Statewide Communities Development Authority, RB:

      

Health Facility Memorial Health Services, Series A, 6.00%, 4/01/13 (b)

      4,915         5,031,780   

Kaiser Permanente, Series A, 5.00%, 4/01/42

      14,000         15,506,120   

Kaiser Permanente, Series B, 5.25%, 3/01/45

      6,100         6,474,235   
Municipal Bonds    Par
(000)		      Value  

California (continued)

                  

Health (concluded)

      

California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West, Series D, 5.50%, 7/01/31

    $ 4,650       $ 5,204,094   

City of Newport Beach California, Refunding RB, Hoag Memorial Hospital Presbyterian, 6.00%, 12/01/40

      3,820         4,708,074   
     

 

 

  
        106,141,063   

 

  

State — 10.0%

      

California State Public Works Board, RB, Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

      3,670         4,416,955   

California State Public Works Board, RB, California State Prisons, Series C, 5.75%, 10/01/31

      1,205         1,419,177   

Pittsburg Unified School District, Refunding RB (AGM), 5.50%, 9/01/46

      5,000         5,676,000   

State of California, GO:

      

6.00%, 3/01/33

      5,800         7,191,768   

6.00%, 4/01/38

      28,265         33,965,768   

University of California, RB, Limited Project, Series D (NPFGC), 5.00%, 5/15/41

      13,000         14,441,830   
     

 

 

  
        67,111,498   

 

  

Transportation — 14.8%

      

City of Fresno California, ARB, Series B, AMT (AGM), 5.50%, 7/01/20

      4,455         4,561,920   

City of Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39

      2,775         3,130,894   

City of San Jose California, Refunding ARB, Series A-1, AMT:

      

5.25%, 3/01/23

      2,985         3,472,122   

6.25%, 3/01/34

      1,400         1,682,856   

County of Orange California, ARB, Series B, 5.75%, 7/01/34

      6,345         7,152,338   

County of Sacramento California Airport System, ARB:

      

Senior Series A (AGC), 5.50%, 7/01/41

      8,095         9,106,146   

Senior Series B, 5.75%, 7/01/39

      2,650         3,021,133   

Senior Series B, AMT (AGM), 5.75%, 7/01/28

      13,275         15,030,751   

Senior Series B, AMT (AGM), 5.25%, 7/01/33

      19,530         21,167,590   

Los Angeles Department of Airports, RB, Los Angeles International Airport, Senior Series D, 5.25%, 5/15/29

      2,590         3,064,877   

Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34

      5,530         6,454,008   
 

 

 

                 
  BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.       OCTOBER 31, 2012    2

 
Schedule of Investments (continued)  

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par
(000)		      Value  

California (continued)

                  

Transportation (concluded)

      

San Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39

    $ 9,650       $ 11,410,642   

San Francisco City & County Airports Commission, Refunding RB, AMT:

      

Second Series 34E (AGM), 5.75%, 5/01/24

      5,000         5,806,050   

Second Series A, 5.00%, 5/01/32

      1,415         1,587,715   

San Joaquin County Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36

      2,400         2,943,168   
     

 

 

  
                99,592,210   

Utilities — 27.7%

      

Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36

      2,200         2,593,206   

City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A:

      

5.00%, 6/01/28

      2,000         2,352,460   

5.00%, 6/01/32

      3,000         3,454,680   

Cucamonga Valley Water District Financing Authority, RB:

      

5.00%, 9/01/37

      7,705         8,923,160   

5.00%, 9/01/42

      5,500         6,339,355   

Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41

      4,000         4,877,560   

East Bay Municipal Utility District, RB, Series A (NPFGC), 5.00%, 6/01/32

      6,990         8,001,803   

East Bay Municipal Utility District, Refunding RB, Sub-Series A:

      

(AGM), 5.00%, 6/01/37

      11,190         12,820,383   

(AMBAC), 5.00%, 6/01/33

      5,000         5,723,750   

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33

      2,500         2,762,800   

Imperial Irrigation District, Refunding RB, System, 5.13%, 11/01/38

      9,500         10,447,625   

Los Angeles Department of Water & Power, RB, Series A, 5.38%, 7/01/38

      10,500         12,234,495   

Los Angeles Department of Water & Power, Refunding RB, System, Series A, 5.25%, 7/01/39

      16,000         18,868,960   

Metropolitan Water District of Southern California, RB, Series B-1 (NPFGC), 5.00%, 10/01/13 (b)

      8,605         8,980,608   

Sacramento Municipal Utility District, RB, Series R:

      

5.00%, 8/15/13 (b)

      12,140         12,591,729   

5.00%, 8/15/33

      5,360         5,513,028   
Municipal Bonds    Par
(000)		      Value  

California (concluded)

                  

Utilities (concluded)

      

San Diego County Water Authority, COP, Refunding, Series A (NPFGC), 5.00%, 5/01/32

    $ 3,495       $ 3,532,397   

San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A:

      

5.25%, 5/15/34

      1,000         1,149,960   

5.25%, 5/15/39

      12,815         14,629,604   

San Francisco City & County Public Utilities Commission, RB:

      

Local Water Main Sub-Series C, 5.00%, 11/01/41

      5,000         5,728,450   

Series B, 5.00%, 11/01/30

      10,000         11,931,300   

San Francisco City & County Public Utilities Commission, Refunding RB, Series A (NPFGC), 5.00%, 11/01/32

      15,000         15,000,000   

San Juan Water District, Refunding RB, San Juan & Citrus Heights, 5.25%, 2/01/33

      7,325         8,660,348   
     

 

 

  
         187,117,661   

Total Municipal Bonds — 106.1%

  

      715,979,645   
     
     
     

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (c)

      
                   

California — 61.6%

                  

County/City/Special District/School District — 33.4%

  

Alameda County Joint Powers Authority, Refunding RB, Lease (AGM), 5.00%, 12/01/34

      13,180         14,361,983   

Contra Costa Community College District California, GO, Election of 2002 (NPFGC), 5.00%, 8/01/14 (b)

      7,800         8,369,478   

Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37

      16,530         17,998,029   

Foothill-De Anza Community College District, GO, Series C, 5.00%, 8/01/40

      27,840         32,165,501   

Los Angeles Community College District California, GO:

      

Election of 2001, Series A (NPFGC), 5.00%, 8/01/32

      6,647         7,560,671   

Election of 2001, Series E-1, 5.00%, 8/01/33

      11,770         13,484,536   

Election of 2003, Series E (AGM), 5.00%, 8/01/31

      11,216         12,586,951   

Election of 2003, Series F-1, 5.00%, 8/01/33

      10,000         11,456,700   
 

 

                 
  BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.       OCTOBER 31, 2012    3

 
Schedule of Investments (continued)  

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (c)

    Par
(000)		      Value  

California (continued)

                  

County/City/Special District/School District

(concluded)

  

  

   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33

    $ 9,596       $ 12,118,382   

Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, Senior Series A (AMBAC), 5.00%, 7/01/35

      8,997         9,834,426   

Los Angeles County Sanitation Districts Financing Authority, Refunding RB, Capital Project 14 (BHAC), 5.00%, 10/01/34

      7,917         8,647,634   

Ohlone Community College District, GO, Series B (AGM), 5.00%, 8/01/15 (b)

      16,518         18,607,186   

Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/30

      10,000         10,863,000   

San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31

      17,770         19,708,352   

San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC):

      

5.00%, 7/01/30

      23,100         25,218,039   

5.00%, 7/01/34

      2,499         2,728,484   
     

 

 

  
                225,709,352   

Education — 11.6%

      

Chaffey Community College District, GO, Election of 2002, Series B (NPFGC), 5.00%, 6/01/15 (b)

      9,905         10,717,930   

Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35

      11,000         12,453,870   

Mount Diablo California Unified School District, GO, 5.00%, 6/01/31

      4,000         4,265,000   

Riverside Community College District, GO, Election of 2004, Series C (NPFGC), 5.00%, 8/01/32

      8,910         10,160,073   

University of California, RB:

      

Limited Project, Series B (AGM), 5.00%, 5/15/13 (b)

      17,397         18,017,465   

Limited Project, Series D (AGM), 5.00%, 5/15/41

      8,000         8,887,280   

Series O, 5.75%, 5/15/34

      11,190         13,438,892   
     

 

 

  
                77,940,510   

Transportation — 2.4%

      

City of Los Angeles California Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40

      4,999         5,651,285   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (c)

   Par
(000)		     Value  

California (concluded)

                

Transportation (concluded)

  

  

San Mateo County Transportation Authority, Refunding RB,
Series A (NPFGC), 5.00%, 6/01/32

   $ 10,000      $ 10,819,900   
   

 

 

  
              16,471,185   

Utilities — 14.2%

    

City of Napa California Water System, RB (AMBAC), 5.00%, 5/01/35

     9,100        9,864,764   

East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35

     12,070        13,175,009   

East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/37

     14,510        16,582,753   

Los Angeles Department of Water & Power, RB, Sub-Series A-2 (AGM), 5.00%, 7/01/35

     7,500        8,465,925   

Metropolitan Water District of
Southern California, RB,
Series A (AGM), 5.00%, 7/01/35

     12,870        14,078,364   

Rancho Water District Financing Authority, Refunding RB,
Series A (AGM), 5.00%, 8/01/34

     5,008        5,541,962   

Sacramento Regional County Sanitation District, RB, Sacramento Regional County Sanitation (NPFGC), 5.00%, 12/01/36

     4,500        5,036,985   

San Diego County Water Authority, COP, Series A (AGM), 5.00%, 5/01/31

     4,000        4,216,000   

San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33

     16,740        18,587,259   
   

 

 

  
              95,549,021   

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts – 61.6%

  

  

     415,670,068   

Total Long-Term Investments

(Cost – $1,041,439,587) – 167.7%

  

  

     1,131,649,713   
   
   
   
Short-Term Securities   Shares         

BIF California Municipal Money Fund, 0.00% (d)(e)

     10,861,988        10,861,988   

Total Short-Term Securities

(Cost – $10,861,988) – 1.6%

  

  

     10,861,988   
 

 

                 
  BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.       OCTOBER 31, 2012    4

 
Schedule of Investments (continued)  

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

            Value  

Total Investments

(Cost - $1,052,301,575*) – 169.3%

    $ 1,142,511,701   

Liabilities in Excess of Other Assets – (2.8)%

      (18,782,366 ) 

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (28.9)%

      (194,818,447 ) 

VMTP Shares, at Liquidation Value – (37.6)%

      (254,000,000 ) 
     

 

 

  

Net Assets Applicable to Common
Shares – 100.0%

    $ 674,910,888   
     

 

 

  
* As of October 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost

    $    857,874,669   
  

 

 

  

Gross unrealized appreciation

    $ 89,942,018   

Gross unrealized depreciation

      —   
  

 

 

  

Net unrealized appreciation

    $ 89,942,018   
  

 

 

  
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b) 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.
(c) 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.
(d) Investments in issuers considered to be an affiliate of the Fund during the period ended October 31, 2012, 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, 2012		     Net
Activity		     Shares
Held at
October 31,
2012		     Income  

BIF California Municipal Money Fund

     19,427,466        (8,565,478 )      10,861,988        —   

 

(e) 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.

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:

 

AGC

    Assured Guaranty Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BHAC    Berkshire Hathaway Assurance Corp.
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
GO    General Obligation Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds

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

 

  •  

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

 

  •  

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

 

  •  

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

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

 

 

                 
  BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.       OCTOBER 31, 2012    5

 
Schedule of Investments (concluded)  

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

 

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the 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 Fund’s investments categorized in the disclosure hierarchy as of October 31, 2012:

     Level 1     Level 2     Level 3     Total  

Assets:

        

Investments:

        

Long
Term
Invest
ments1

     —        $ 1,131,649,713        —      $   1,131,649,713   

Short-Term
Secu
rities

   $   10,861,988        —        —        10,861,988   
 

 

 

  

Total

   $ 10,861,988        $ 1,131,649,713        —      $ 1,142,511,701   
 

 

 

  
1See

above Schedule of Investments for values in each sector.

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of October 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

     Level 1     Level 2     Level 3     Total  

Liabilities:

        

TOB trust
certificates

     —      $ (194,695,014 )      —      $ (194,695,014 ) 

VMTP
Shares

     —        (254,000,000 )      —        (254,000,000 ) 
 

 

 

  

Total

     —      $ (448,695,014 )      —      $ (448,695,014 ) 
 

 

 

  

There were no transfers between levels during the period ended October 31, 2012.

 

 

                 
  BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.       OCTOBER 31, 2012    6

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 MuniHoldings California Quality Fund, Inc.

 

By:  

   

/s/ John M. Perlowski

   
   John M. Perlowski   
   Chief Executive Officer (principal executive officer) of
   BlackRock MuniHoldings California Quality Fund, Inc.

Date: December 21, 2012

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 MuniHoldings California Quality Fund, Inc.

Date: December 21, 2012

 

By:  

   

/s/ Neal J. Andrews

   
   Neal J. Andrews   
   Chief Financial Officer (principal financial officer) of
   BlackRock MuniHoldings California Quality Fund, Inc.

Date: December 21, 2012