Unassociated Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-7278
 
Nuveen Arizona Premium Income Municipal Fund, Inc.
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            7/31          
 
Date of reporting period:         4/30/10         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
Item 1. Schedule of Investments
 
 
  Portfolio of Investments (Unaudited)       
      Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)       
      April 30, 2010       
Principal    Optional Call     
Amount (000)  Description (1)  Provisions (2)  Ratings (3)  Value 
  Consumer Staples – 1.2% (0.9% of Total Investments)       
$     765  Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds,  5/12 at 100.00  BBB  $    750,909 
  Series 2002, 5.375%, 5/15/33       
  Education and Civic Organizations – 11.3% (7.9% of Total Investments)       
2,500  Arizona Higher Education Loan Authority, Student Loan Revenue Bonds, Series 2007B, Auction  9/10 at 100.00  A  2,243,625 
  Rate Securities, 0.690%, 11/01/41 (Alternative Minimum Tax) (4)       
1,000  Arizona State University, System Revenue Bonds, Series 2002, 5.000%, 7/01/25 – FGIC Insured  7/12 at 100.00  AA  1,057,220 
  Arizona State University, System Revenue Bonds, Series 2005:       
1,455  5.000%, 7/01/20 – AMBAC Insured  7/15 at 100.00  N/R  1,500,658 
750  5.000%, 7/01/21 – AMBAC Insured  7/15 at 100.00  N/R  769,688 
1,500  Tempe Industrial Development Authority, Arizona, Lease Revenue Bonds, Arizona State University  7/13 at 100.00  N/R  1,421,370 
  Foundation Project, Series 2003, 5.000%, 7/01/34 – AMBAC Insured       
7,205  Total Education and Civic Organizations      6,992,561 
  Health Care – 22.0% (15.4% of Total Investments)       
1,430  Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series  1/17 at 100.00  A+  1,452,594 
  2007A, 5.000%, 1/01/25       
885  Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series  1/17 at 100.00  A+  621,713 
  2007B, 1.005%, 1/01/37       
3,470  Arizona Health Facilities Authority, Hospital Revenue Bonds, Banner Health Systems, Series  1/18 at 100.00  A+  3,541,482 
  2008D, 5.500%, 1/01/38       
675  Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health  12/15 at 100.00  BBB  614,885 
  Network, Series 2005B, 5.000%, 12/01/37       
1,110  Glendale Industrial Development Authority, Arizona, Revenue Bonds, John C. Lincoln Health  12/17 at 100.00  BBB  995,459 
  Network, Series 2007, 5.000%, 12/01/42       
2,150  Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds,  7/14 at 100.00  A  2,216,543 
  Catholic Healthcare West, Series 2004A, 5.375%, 7/01/23       
2,800  Maricopa County Industrial Development Authority, Arizona, Health Facility Revenue Bonds,  7/17 at 100.00  A  2,823,072 
  Catholic Healthcare West, Series 2007A, 5.250%, 7/01/32       
515  Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities  11/10 at 101.00  Aa1  532,793 
  Financing Authority, Hospital Revenue Bonds, Hospital de la Concepcion, Series 2000A,       
  6.375%, 11/15/15       
950  Winslow Industrial Development Authority, Arizona, Hospital Revenue Bonds, Winslow Memorial  6/10 at 100.00  N/R  839,952 
  Hospital, Series 1998, 5.500%, 6/01/22       
13,985  Total Health Care      13,638,493 
  Housing/Single Family – 4.3% (3.0% of Total Investments)       
485  Phoenix and Pima County Industrial Development Authority, Arizona, Single Family Mortgage  7/17 at 103.00  Aaa  509,580 
  Revenue Bonds, Series 2007-4, 5.800%, 12/01/39 (Alternative Minimum Tax)       
2,115  Tucson and Pima County Industrial Development Authority, Arizona, Joint Single Family Mortgage  6/17 at 101.00  Aaa  2,155,185 
  Revenue Bonds, Series 2007B, 5.350%, 6/01/47 (Alternative Minimum Tax)       
2,600  Total Housing/Single Family      2,664,765 
  Tax Obligation/General – 10.7% (7.5% of Total Investments)       
1,265  Gila County Unified School District 10 Payson, Arizona, School Improvement Bonds, Project  7/18 at 100.00  Aa3  1,351,184 
  2006, Series 2008B, 3.000%, 7/01/28       
1,200  Maricopa County Unified School District 95 Queen Creek, Arizona, General Obligation Bonds,  7/18 at 100.00  Aa3  1,245,552 
  Series 2008, 5.000%, 7/01/27 – AGM Insured       
3,530  Pinal County Unified School District 1, Florence, Arizona, General Obligation Bonds, Series  7/18 at 100.00  A  3,736,292 
  2008C, 5.250%, 7/01/28       
330  Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A, 5.375%, 7/01/28  7/11 at 100.00  A3  331,030 
6,325  Total Tax Obligation/General      6,664,058 
  Tax Obligation/Limited – 33.7% (23.6% of Total Investments)       
376  Estrella Mountain Ranch Community Facilities District, Goodyear, Arizona, Special Assessment  7/10 at 102.00  N/R  384,054 
  Lien Bonds, Series 2001A, 7.875%, 7/01/25       
3,000  Glendale Western Loop 101 Public Facilities Corporation, Arizona, Third Lien Excise Tax  1/14 at 100.00  AA  3,153,780 
  Revenue Bonds, Series 2008B, 6.250%, 7/01/38       
1,280  Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006-1, 5.000%,  8/16 at 100.00  AA–  1,325,952 
  8/01/22 – NPFG Insured       
740  Greater Arizona Development Authority, Infrastructure Revenue Bonds, Series 2006A, 5.000%,  8/16 at 100.00  AA–  777,947 
  8/01/23 – NPFG Insured       
575  Marana Municipal Property Corporation, Arizona, Revenue Bonds, Series 2003, 5.000%, 7/01/28 –  7/13 at 100.00  AA  589,686 
  AMBAC Insured       
1,511  Marana, Arizona, Tangerine Farms Road Improvement District Revenue Bonds, Series 2006,  7/16 at 100.00  A2  1,379,694 
  4.600%, 1/01/26       
3,400  Maricopa County Stadium District, Arizona, Revenue Refunding Bonds, Series 2002, 5.375%,  6/12 at 100.00  N/R  3,599,409 
  6/01/18 – AMBAC Insured       
3,400  Mesa, Arizona, Street and Highway User Tax Revenue Bonds, Series 2005, 5.000%, 7/01/24 –  7/15 at 100.00  AAA  3,599,511 
  AGM Insured       
1,140  Pinetop Fire District of Navajo County, Arizona, Certificates of Participation, Series 2008,  6/16 at 102.00  A3  1,147,330 
  7.750%, 6/15/29       
1,200  Prescott Valley Municipal Property Corporation, Arizona, Municipal Facilities Revenue Bonds,  1/13 at 100.00  AA–  1,223,328 
  Series 2003, 5.000%, 1/01/27 – FGIC Insured       
265  Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding  7/12 at 100.00  A3  265,602 
  Bonds, Series 2002D, 5.125%, 7/01/24       
1,610  San Luis Civic Improvement Corporation, Arizona, Municipal Facilities Excise Tax Revenue  7/15 at 100.00  A+  1,645,179 
  Bonds, Series 2005, 5.000%, 7/01/25 – SYNCORA GTY Insured       
1,000  Scottsdale Municipal Property Corporation, Arizona, Excise Tax Revenue Bonds, Refunding Series  No Opt. Call  AAA  1,150,670 
  2006, 5.000%, 7/01/24       
645  Vistancia Community Facilities District, Arizona, Restricted General Obligation Bonds, Series  7/15 at 100.00  A1  642,459 
  2005, 5.750%, 7/15/24       
20,142  Total Tax Obligation/Limited      20,884,601 
  U.S. Guaranteed – 16.5% (11.6% of Total Investments) (5)       
800  Arizona Health Facilities Authority, Hospital Revenue Bonds, Catholic Healthcare West, Series  7/10 at 101.00  N/R (5)  815,536 
  1999A, 6.625%, 7/01/20 (Pre-refunded 7/01/10)       
1,000  Arizona Health Facilities Authority, Hospital System Revenue Bonds, John C. Lincoln Health  12/10 at 102.00  BBB (5)  1,057,160 
  Network, Series 2000, 7.000%, 12/01/25 (Pre-refunded 12/01/10)       
1,250  Glendale Industrial Development Authority, Arizona, Revenue Bonds, Midwestern University,  5/11 at 101.00  AAA  1,332,388 
  Series 2001A, 5.875%, 5/15/31 (Pre-refunded 5/15/11)       
1,250  Maricopa County Industrial Development Authority, Arizona, Hospital Revenue Refunding Bonds,  No Opt. Call  A (5)  1,526,275 
  Samaritan Health Services, Series 1990A, 7.000%, 12/01/16 – NPFG Insured (ETM)       
385  Maricopa County, Arizona, Hospital Revenue Bonds, Sun Health Corporation, Series 2005, 5.000%,  4/15 at 100.00  N/R (5)  442,065 
  4/01/16 (Pre-refunded 4/01/15)       
1,600  Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds,  7/10 at 101.00  AA+ (5)  1,631,584 
  Series 2000, 6.000%, 7/01/24 (Pre-refunded 7/01/10) – FGIC Insured       
1,000  Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2000B, 6.500%,  7/10 at 101.00  A3 (5)  1,020,420 
  7/01/27 (Pre-refunded 7/01/10)       
735  Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding  7/12 at 100.00  Baa3 (5)  799,313 
  Bonds, Series 2002D, 5.125%, 7/01/24 (Pre-refunded 7/01/12)       
1,500  Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale  12/11 at 101.00  N/R (5)  1,634,145 
  Healthcare, Series 2001, 5.800%, 12/01/31 (Pre-refunded 12/01/11)       
9,520  Total U.S. Guaranteed      10,258,886 
  Utilities – 23.7% (16.7% of Total Investments)       
1,000  Arizona Power Authority, Special Obligation Power Resource Revenue Refunding Crossover Bonds,  No Opt. Call  AA  1,159,990 
  Hoover Project, Series 2001, 5.250%, 10/01/15       
1,340  Pima County Industrial Development Authority, Arizona, Revenue Bonds, Tucson Electric Power  1/15 at 100.00  BBB–  1,365,795 
  Company, Refunding Series 2008, 5.750%, 9/01/29       
2,170  Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/27 –  7/15 at 100.00  A3  2,196,452 
  SYNCORA GTY Insured       
530  Salt River Project Agricultural Improvement and Power District, Arizona, Electric System  1/13 at 100.00  Aa1  566,687 
  Revenue Bonds, Series 2002B, 5.000%, 1/01/22       
715  Salt River Project Agricultural Improvement and Power District, Arizona, Electric System  1/18 at 100.00  Aa1  849,206 
  Revenue Bonds, Tender Option Bond Trust 09-9W, 17.076%, 1/01/38 (IF)       
1,000  Salt River Project Agricultural Improvement and Power District, Arizona, Electric System  1/12 at 101.00  Aa1  1,030,510 
  Revenue Refunding Bonds, Series 2002A, 5.125%, 1/01/27       
  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc       
  Prepay Contract Obligations, Series 2007:       
4,500  5.500%, 12/01/29  No Opt. Call  A  4,436,099 
3,500  5.000%, 12/01/37  No Opt. Call  A  3,121,160 
14,755  Total Utilities      14,725,899 
  Water and Sewer – 19.1% (13.4% of Total Investments)       
1,005  Cottonwood, Arizona, Senior Lien Water System Revenue Bonds, Municipal Property Corporation,  7/14 at 100.00  A  984,950 
  Series 2004, 5.000%, 7/01/24 – SYNCORA GTY Insured       
3,500  Glendale, Arizona, Water and Sewer Revenue Bonds, Subordinate Lien, Series 2003, 5.000%,  7/13 at 100.00  AA  3,634,609 
  7/01/28 – AMBAC Insured       
1,425  Goodyear, Arizona, Water and Sewer Revenue Obligations, Series 2010, 5.625%, 7/01/39  7/20 at 100.00  A2  1,419,813 
600  Oro Valley Municipal Property Corporation, Arizona, Senior Lien Water Revenue Bonds, Series  7/13 at 100.00  AA–  618,384 
  2003, 5.000%, 7/01/23 – NPFG Insured       
1,000  Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds,  7/14 at 100.00  AA+  1,038,780 
  Series 2004, 5.000%, 7/01/24 – NPFG Insured       
1,500  Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series  7/12 at 100.00  AAA  1,524,180 
  2002, 5.000%, 7/01/26 – FGIC Insured       
1,250  Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Refunding  No Opt. Call  AAA  1,481,325 
  Bonds, Series 2001, 5.500%, 7/01/21 – FGIC Insured       
  Surprise Municipal Property Corporation, Arizona, Wastewater System Revenue Bonds, Series 2007:       
600  4.700%, 4/01/22  4/14 at 100.00  N/R  542,784 
695  4.900%, 4/01/32  4/17 at 100.00  N/R  584,092 
11,575  Total Water and Sewer      11,828,917 
$     86,872  Total Investments (cost $84,326,011) – 142.5%      88,409,089 
  Other Assets Less Liabilities – 2.4%      1,488,103 
  Preferred Shares, at Liquidation Value – (44.9)% (6)      (27,875,000)
  Net Assets Applicable to Common Shares – 100%      $ 62,022,192 

 
 

Fair Value Measurements

In determining the value of the Fund‘s investments, various inputs are used. These inputs are summarized in the three broad levels listed below:

  Level 1 – Quoted prices in active markets for identical securities.

  Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

  Level 3 – Significant unobservable inputs (including management‘s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund‘s fair value measurements as of April 30, 2010:

  Level 1  Level 2  Level 3  Total 
Investments:         
Municipal Bonds  $ —  $88,165,464  $2,243,625  $88,409,089 

The following is a reconciliation of the Fund's Level 3 investments held at the beginning and end of the measurement period:

  Level 3 
  Municipal Bonds 
Balance at the beginning of period  $1,978,300 
Gains (losses):   
Net realized gains (losses)  — 
Net change in unrealized appreciation (depreciation)  265,325 
Net purchases at cost (sales at proceeds)  — 
Net discounts (premiums)  — 
Net transfers in to (out of) at end of period fair value  — 
Balance at the end of period  $2,243,625 

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At April 30, 2010, the cost of investments was $84,257,710.

Gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 2010, were as follows:

Gross unrealized:   
   Appreciation  $5,007,676 
   Depreciation  (856,297)
Net unrealized appreciation (depreciation) of investments  $4,151,379 

(1)  All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares 
  unless otherwise noted. 
(2)  Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There 
  may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be 
  subject to periodic principal paydowns. 
(3)  Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, 
  Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be 
  below investment grade. 
(4)  Investment valued at fair value using methods determined in good faith by, or at the discretion of, the 
  Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. 
(5)  Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities 
  which ensure the timely payment of principal and interest. Such investments are normally considered to 
  be equivalent to AAA rated securities. 
(6)  Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.5%. 
N/R  Not rated. 
(ETM)  Escrowed to maturity. 
(IF)  Inverse floating rate investment. 

 
Item 2. Controls and Procedures.

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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
 
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 (17 CFR 270.30a-3(d)) 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.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 
SIGNATURES

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.
 
(Registrant)  Nuveen Arizona Premium Income Municipal Fund, Inc. 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         June 29, 2010        
 
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 (Signature and Title)     /s/ Gifford R. Zimmerman                    
                                                    Gifford R. Zimmerman
                                                  Chief Administrative Officer (principal executive officer) 
 
Date         June 29, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date        June 29, 2010