NOTE 1. ORGANIZATION The BlackRock North American Government & Income Trust
& ACCOUNTING Inc., (the "Trust"), a Maryland corporation, is a POLICIES non-diversified, closed-end
management investment company. The investment objective of the Trust is to achieve high monthly income
consistent with preservation of capital. The ability of issuers of debt securities held by the Trust to meet their
obligations may be affected by economic developments in a specific country, industry or region. No assurance
can be given that the Trust's investment objective will be achieved.
The following is a summary of significant accounting policies followed by the Trust.
BASIS OF PRESENTATION: The financial statements of the Trust are prepared in accordance with accounting
principles generally accepted in the United States of America using the United States dollar as both the functional
and reporting currency.
SECURITIES VALUATION: In valuing the Trust's assets, quotations of foreign securities in a foreign currency
are converted to U.S. dollar equivalents at the then current currency value. The Trust values mortgage-backed,
asset-backed and other debt securities, interest rate swaps, caps, floors, and non-exchange traded options on the
basis of current market quotations provided by dealers or pricing services approved by the Trust's Board of
Directors. In determining the value of a particular security, pricing services may use certain information with
respect to transactions in such securities, quotations from dealers, market transactions in comparable securities,
various relationships observed in the market between securities, and calculated yield measures based on valuation
technology commonly employed in the market for such securities. Exchange-traded options are valued at their
last sales price as of the close of options trading on the applicable exchanges. In the absence of a last sale,
options are valued at the average of the quoted bid and asked prices as of the close of business. A futures
contract is v