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: 07/31/2014

Date of reporting period: 04/30/2014

Item 1 – Schedule of Investments

Schedule of Investments April 30, 2014 (Unaudited)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

California — 113.9%

                 

Corporate — 0.4%

     

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

    $ 2,435      $ 2,793,115   

County/City/Special District/School District — 32.2%

     

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

      9,000        10,582,110   

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

      4,040        4,055,231   

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

      3,500        4,055,905   

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

      2,500        2,808,225   

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

      2,440        2,949,204   

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

      5,050        5,817,751   

County of Ventura California Public Financing Authority, Refunding LRB, Series A, 5.00%, 11/01/43

      4,000        4,265,120   

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

      3,750        3,762,788   

Foothill-De Anza Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/40

      30,000        32,638,500   

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/40

      5,500        6,116,935   

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

      2,000        2,328,000   

Kern Community College District, GO, Safety Repair & Improvements, Series C:

     

5.25%, 11/01/32

      5,715        6,552,419   

5.75%, 11/01/34

      12,075        14,418,757   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

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

  

Los Alamitos Unified School District, GO, Refunding, School Facilities Improvement, Series E, 5.25%, 8/01/39

    $ 3,700      $ 4,127,239   

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

      7,000        7,174,090   

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

      11,000        12,015,740   

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

      10,000        10,684,700   

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

      5,000        5,643,750   

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

      8,750        9,698,412   

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

      900        1,051,587   

San Jose California Financing Authority, LRB, Convention Center Expansion & Renovation Project, Series A:

     

5.75%, 5/01/36

      2,560        2,772,301   

5.75%, 5/01/42

      4,500        5,231,565   

San Jose California Financing Authority, Refunding LRB, Convention Center Expansion & Renovation Project, Series A,
5.00%, 6/01/39

      23,300        25,262,792   

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

      5,635        6,518,906   

West Contra Costa California Unified School District, GO:

     

Election of 2005, Series A (AGM), 5.00%, 8/01/35

      5,000        5,106,900   

Election of 2010, Series A (AGM), 5.25%, 8/01/41

      5,390        5,817,211   

Election of 2010, Series B, 5.50%, 8/01/39

      3,195        3,572,873   

Election of 2012, Series A, 5.50%, 8/01/39

      2,500        2,797,725   
    

 

 

  
               207,826,736   

 

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014    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 — 10.0%

     

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38

    $ 2,000      $ 2,262,060   

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

      2,750        3,117,785   

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

     

5.50%, 8/01/31

      2,170        2,486,126   

5.75%, 8/01/35

      8,400        9,693,936   

University of California, RB, Election of 2004, Series D:

     

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

      13,000        14,146,340   

Series L, 5.00%, 5/15/36

      3,030        3,310,790   

University of California, Refunding RB:

     

General, Series AI, 5.00%, 5/15/38

      5,000        5,495,550   

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

      22,250        24,133,017   
    

 

 

  
               64,645,604   

Health — 16.3%

     

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

     

Series A, 6.00%, 8/01/30

      2,305        2,771,762   

Series B, 6.25%, 8/01/39

      6,305        7,185,115   

California Health Facilities Financing Authority, RB:

     

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

      8,620        9,208,746   

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

      7,275        7,470,988   

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

      4,130        4,737,895   

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

      7,500        7,772,400   

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

      9,655        11,437,120   

California Health Facilities Financing Authority, Refunding RB:

     

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

      3,700        4,174,784   

Saint Joseph’s Health System, Series A, 5.00%, 7/01/37

      10,000        10,800,600   

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

      3,065        3,466,025   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Health (concluded)

     

California Statewide Communities Development Authority, RB, Kaiser Permanente:

     

Series A, 5.00%, 4/01/42

    $ 11,500      $ 12,225,535   

Series B, 5.25%, 3/01/45

      12,505        12,782,861   

California Statewide Communities Development Authority, Refunding RB:

     

Kaiser Permanente, Series C, 5.25%, 8/01/31

      2,500        2,619,850   

Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41

      6,235        6,589,148   

Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38

      1,625        1,875,591   
    

 

 

  
               105,118,420   

State — 8.7%

     

California State Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/33

      2,015        2,336,634   

California State Public Works Board, RB:

     

California State Prisons, Series C, 5.75%, 10/01/31

      1,205        1,396,993   

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

      3,670        4,349,721   

Series B, 5.00%, 10/01/39

      7,965        8,553,693   

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      5,000        5,992,700   

6.00%, 4/01/35

      125        147,158   

6.00%, 4/01/38

      28,095        33,032,134   
    

 

 

  
               55,809,033   

Transportation — 18.2%

     

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

      9,650        11,385,070   

City & County of San Francisco California Airports Commission, Refunding ARB, AMT:

     

2nd Series 34E (AGM), 5.75%, 5/01/24

      5,000        5,679,300   

Series A, 5.00%, 5/01/29

      6,435        7,075,347   

 

                
2    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014   

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)

     

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

    $ 2,590      $ 2,979,717   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:

     

5.25%, 5/15/39

      5,835        6,573,478   

Senior, 5.00%, 5/15/40

      3,750        4,041,863   

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

     

5.25%, 3/01/23

      3,785        4,330,040   

6.25%, 3/01/34

      1,400        1,602,132   

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

      9,000        9,402,390   

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

      6,345        7,193,453   

County of Sacramento California, ARB:

     

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

      8,190        9,290,818   

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

      2,650        3,022,246   

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

      13,275        15,196,689   

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

      19,530        20,642,233   

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

      5,530        6,310,836   

San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34

      2,500        2,600,150   
    

 

 

  
        117,325,762   

Utilities — 28.1%

     

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

      2,200        2,534,554   

City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A, 5.00%, 6/01/28

      2,000        2,297,620   

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

      9,100        9,475,284   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Utilities (continued)

     

City of San Francisco California Public Utilities Commission Water, RB, Series B, 5.00%, 11/01/30

    $ 10,000      $ 11,329,400   

County of Sacramento California Sanitation Districts Financing Authority, RB, Sacramento Regional County Sanitation (NPFGC), 5.00%, 12/01/36

      4,500        4,738,005   

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

      4,000        4,836,200   

East Bay Municipal Utility District, RB:

     

Series A (NPFGC), 5.00%, 6/01/32

      11,935        13,170,392   

Series A (NPFGC), 5.00%, 6/01/37

      6,670        7,351,941   

Sub-Series A (NPFGC), 5.00%, 6/01/35

      12,070        12,561,611   

Sub-Series A (AGM), 5.00%, 6/01/37

      11,190        12,334,066   

East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/33

      5,000        5,523,950   

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

      2,505        2,797,258   

El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39

      10,000        11,189,000   

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

      9,500        10,331,440   

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

      9,375        10,639,687   

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

      16,000        17,592,000   

Metropolitan Water District of Southern California, RB, Series A:

     

5.00%, 7/01/35

      12,870        13,445,418   

5.00%, 7/01/37

      5,500        6,009,795   

Metropolitan Water District of Southern California, Refunding RB, Series C, 5.00%, 7/01/35

      2,515        2,825,477   

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

     

5.25%, 5/15/34

      1,060        1,206,937   

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014    3

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

California (concluded)

                 

Utilities (concluded)

     

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A (concluded):

     

5.25%, 5/15/39

    $ 10,000      $ 11,232,900   

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

      7,325        8,162,101   
    

 

 

  
               181,585,036   
Total Municipal Bonds — 113.9%              735,103,706   
    
   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (a)

  

California — 39.0%

                 

County/City/Special District/School District — 21.3%

  

  

County of Alameda California Joint Powers Authority, Refunding LRB (AGM), 5.00%, 12/01/34

      13,180        14,545,975   

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

      7,917        8,332,062   

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

      16,530        18,321,687   

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

      10,000        10,879,500   

Los Angeles Community College District California, GO:

     

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

      6,647        7,367,954   

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

      11,770        13,160,390   

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

      11,216        12,072,739   

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

      10,000        11,181,300   

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

      9,596        11,398,090   

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

      10,000        10,763,500   

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (a)

   

Par  

(000)

     Value  

California (concluded)

                 

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

  

  

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

    $ 17,770      $ 19,126,739   
    

 

 

  
        137,149,936   

Education — 4.9%

     

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

      8,910        9,875,755   

University of California, RB:

     

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

      8,000        8,705,440   

Series O, 5.75%, 5/15/34

      11,190        13,040,975   
    

 

 

  
        31,622,170   

Transportation — 5.3%

     

San Francisco Bay Area Rapid Transit District, Refunding RB, Drivers, Series 2641Z (NPFGC), 5.00%, 1/01/24

      23,100        24,039,015   

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

      10,000        10,407,300   
    

 

 

  
        34,446,315   

Utilities — 7.5%

     

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

      16,740        18,615,382   

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

      14,510        16,104,794   

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

      7,500        8,121,075   

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

      5,008        5,600,078   
    

 

 

  
               48,441,329   

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts — 39.0%

  

  

     251,659,750   

Total Long-Term Investments

(Cost — $921,095,872) — 152.9%

  

  

     986,763,456   

 

 

                
4    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014   

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Short-Term Securities — 0.8%    Shares     Value  

BIF California Municipal Money Fund, 0.00% (b)(c)

      5,109,337      $ 5,109,337   

Total Short-Term Securities

(Cost — $5,109,337) — 0.8%

  

  

     5,109,337   
           Value  
Total Investments (Cost — $926,205,209*) — 153.7%      $ 991,872,793   
Other Assets Less Liabilities — 4.3%        27,480,174   

Liability for TOB Trust Certificates, Including
Interest Expense and Fees Payable — (18.6%)

        (120,032,602 ) 
VMTP Shares, at Liquidation Value — (39.4%)        (254,000,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 645,320,365   
    

 

 

  

 

*   As of April 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 806,469,478   
 

 

 

  

Gross unrealized appreciation

   $ 66,338,671   

Gross unrealized depreciation

     (939,826 ) 
 

 

 

  

Net unrealized appreciation

   $ 65,398,845   
 

 

 

  

 

Notes to Schedule of Investments

 

(a)   Represent bonds transferred to a TOB. In exchange for which the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(b)   Investments in issuers considered to be an affiliate of the Fund during the period ended April 30, 2014, 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,
2013		        Net
Activity		       

Shares Held
at April 30,

2014

        Income  

BIF California Municipal Money Fund

        501,963           4,607,374           5,109,337         $ 204   

 

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

 

Portfolio Abbreviations

 

AGC      Assured Guarantee 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.
COP      Certificates of Participation
GO      General Obligation Bonds
LRB      Lease Revenue Bonds
NPFGC      National Public Finance Guarantee Corp.
RB      Revenue Bonds

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014    5

Schedule of Investments (continued)

   

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Ÿ  

Financial futures contracts outstanding as of April 30, 2014 were as follows:

 

Contracts
Sold		     Issue   Exchange   Expiration   Notional
Value		     Unrealized
Appreciation		  
  (600 )    10-Year U.S. Treasury Note   Chicago Board of Trade   June 2014   $ 74,653,125      $ 95,373   

 

Ÿ  

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 the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Ÿ  

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

 

Ÿ  

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

 

Ÿ  

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)

 

Ÿ  

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 and derivative financial instruments)

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 fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument 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 derivative financial instruments, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2014:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 986,763,456           —         $ 986,763,456   

Short-Term Securities

   $ 5,109,337           —           —           5,109,337   
 

 

 

       

 

 

       

 

 

       

 

 

  

Total

   $ 5,109,337         $ 986,763,456           —         $ 991,872,793   
 

 

 

       

 

 

       

 

 

       

 

 

  

 

1  See above Schedule of Investments for values in each sector.

                 

 

                
6    BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014   

Schedule of Investments (concluded)

    BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

 

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments 2             

Assets:

                 

Interest rate contracts

   $ 95,373           —           —         $ 95,373   

 

2   Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

      

 

The carrying amount for certain of the Fund’s assets and/or liabilities approximates fair value for financial reporting purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

   

    

Level 1

       

Level 2

       

Level 3

        Total  

Assets:

                 

Cash pledged for financial futures contracts

   $ 792,000           —           —         $ 792,000   

Liabilities:

                 

TOB trust certificates

     —         $ (120,004,470 )         —           (120,004,470 ) 

VMTP Shares

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

 

 

       

 

 

       

 

 

       

 

 

  

Total

   $ 792,000         $ (374,004,470 )         —         $ (373,212,470 ) 
 

 

 

       

 

 

       

 

 

       

 

 

  

There were no transfers between levels during the period ended April 30, 2014.

 

                
   BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2014    7

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: June 23, 2014

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: June 23, 2014

 

By:      

/s/ Neal J. Andrews

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

Date: June 23, 2014