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 811-21153
 
Nuveen Maryland Dividend Advantage Municipal Fund 3
(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:            5/31          
 
Date of reporting period:         8/31/11         
 
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 Maryland Dividend Advantage Municipal Fund 3 (NWI) 
      
   
   August 31, 2011 
      
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Consumer Discretionary – 3.8% (2.5% of Total Investments) 
      
$     2,450 
  
Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A, 5.250%, 
9/16 at 100.00 
Baa3 
$    2,157,225 
   
9/01/39 – SYNCORA GTY Insured 
      
380 
  
Baltimore, Maryland, Subordinate Lien Convention Center Hotel Revenue Bonds, Series 2006B, 
9/16 at 100.00 
Ba1 
346,381 
   
5.875%, 9/01/39 
      
700 
  
Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay Hyatt Conference 
12/16 at 100.00 
N/R 
431,865 
   
Center, Series 2006A, 5.000%, 12/01/31 
      
3,530 
  
Total Consumer Discretionary 
    
2,935,471 
   
Consumer Staples – 4.8% (3.1% of Total Investments) 
      
575 
  
Guam Economic Development & Commerce Authority, Tobacco Settlement Asset-Backed Bonds, Series 
6/17 at 100.00 
N/R 
528,621 
   
2007A, 5.250%, 6/01/32 
      
20,000 
  
Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2005A, 
5/15 at 11.19 
BBB– 
650,400 
   
0.000%, 5/15/50 
      
   
Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, 
      
   
Series 2002: 
      
2,260 
  
5.375%, 5/15/33 
5/12 at 100.00 
BBB 
2,107,766 
500 
  
5.500%, 5/15/39 
5/12 at 100.00 
BBB 
418,265 
23,335 
  
Total Consumer Staples 
    
3,705,052 
   
Education and Civic Organizations – 11.8% (7.8% of Total Investments) 
      
225 
  
Anne Arundel County, Maryland, Economic Development Revenue Bonds, Community College Project, 
9/12 at 102.00 
A2 
232,549 
   
Series 2002, 5.125%, 9/01/22 
      
625 
  
Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount Saint Mary’s College, 
9/16 at 100.00 
BB+ 
572,844 
   
Series 2006, 5.625%, 9/01/38 
      
690 
  
Hartford County, Maryland, Economic Development Revenue Bonds, Battelle Memorial Institute, 
4/14 at 100.00 
A+ 
695,762 
   
Series 2004, 5.250%, 4/01/34 
      
625 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Goucher College, 
7/14 at 100.00 
A– 
630,444 
   
Series 2004, 5.125%, 7/01/34 
      
1,000 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins 
7/12 at 100.00 
AA 
1,008,100 
   
University, Series 2002A, 5.000%, 7/01/32 
      
735 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins 
No Opt. Call 
AA+ 
804,399 
   
University, Series 2004, Trust 1003, 13.587%, 1/01/13 (IF) 
      
925 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Maryland Institute 
6/16 at 100.00 
Baa1 
904,021 
   
College of Art, Series 2006, 5.000%, 6/01/30 
      
165 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Patterson Park 
7/20 at 100.00 
BBB– 
156,554 
   
Public Charter School Issue, Series 2010, 6.000%, 7/01/40 
      
625 
  
Maryland Industrial Development Financing Authority, Revenue Bonds, Our Lady of Good Counsel 
5/15 at 100.00 
N/R 
626,769 
   
High School, Series 2005A, 6.000%, 5/01/35 
      
710 
  
Montgomery County Revenue Authority, Maryland, Lease Revenue Bonds, Montgomery College Arts 
5/15 at 100.00 
Aa3 
779,616 
   
Center Project, Series 2005A, 5.000%, 5/01/18 
      
1,000 
  
Morgan State University, Maryland, Student Tuition and Fee Revenue Bonds, Academic Fees and 
7/13 at 100.00 
Aa3 
1,012,070 
   
Auxiliary Facilities, Series 2003A, 5.000%, 7/01/32 – FGIC Insured 
      
800 
  
University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2006A, 
10/16 at 100.00 
AA+ 
894,288 
   
5.000%, 10/01/22 
      
890 
  
Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel College, Series 2006, 
11/16 at 100.00 
BBB+ 
863,531 
   
5.000%, 11/01/31 
      
9,015 
  
Total Education and Civic Organizations 
    
9,180,947 
   
Health Care – 31.5% (20.7% of Total Investments) 
      
700 
  
Maryland Health and Higher Education Facilities Authority, Revenue Bonds, University of 
7/16 at 100.00 
A 
705,929 
   
Maryland Medical System Issue, Series 2006A, 5.000%, 7/01/31 
      
445 
  
Maryland Health and Higher Education Facilities Authority, Revenue Bonds, University of 
7/19 at 100.00 
A 
451,706 
   
Maryland Medical System Issue, Series 2010, 5.125%, 7/01/39 
      
300 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds Doctors Community 
No Opt. Call 
Baa3 
265,704 
   
Hospital, Refunding Series 2010, 5.750%, 7/01/38 
      
375 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Adventist 
1/22 at 100.00 
Baa2 
370,988 
   
Healthcare, Series 2011A, 6.125%, 1/01/36 (WI/DD, Settling 9/01/11) 
      
335 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Anne Arundel 
7/19 at 100.00 
A– 
334,977 
   
Health System, Series 2010, 5.000%, 7/01/40 
      
1,000 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Anne Arundel 
1/12 at 100.00 
AA+ 
1,000,230 
   
Medical Center, Series 1998, 5.125%, 7/01/33 – AGM Insured 
      
775 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Calvert Memorial 
7/14 at 100.00 
A3 
780,386 
   
Hospital, Series 2004, 5.500%, 7/01/36 
      
1,250 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Carroll County 
7/12 at 100.00 
A3 
1,257,663 
   
General Hospital, Series 2002, 5.800%, 7/01/32 
      
1,750 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Carroll Hospital 
7/16 at 100.00 
A3 
1,653,015 
   
Center, Series 2006, 5.000%, 7/01/40 
      
1,070 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Civista Medical 
7/14 at 100.00 
N/R 
864,603 
   
Center, Series 2005, 5.000%, 7/01/37 – RAAI Insured 
      
885 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Doctors Community 
7/17 at 100.00 
Baa3 
758,480 
   
Hospital, Series 2007A, 5.000%, 7/01/29 
      
700 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Frederick Memorial 
7/12 at 100.00 
Baa1 
647,829 
   
Hospital, Series 2002, 5.125%, 7/01/35 
      
640 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Greater Baltimore 
1/12 at 100.00 
A 
629,683 
   
Medical Center, Series 2001, 5.000%, 7/01/34 
      
1,000 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins 
11/11 at 100.00 
AA– 
1,001,610 
   
Hospital, Series 2001, 5.000%, 5/15/21 
      
1,000 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Kennedy Krieger 
7/13 at 100.00 
Baa3 
980,000 
   
Institute, Series 2003, 5.500%, 7/01/33 
      
595 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, LifeBridge Health 
7/17 at 100.00 
AA+ 
613,618 
   
System, Series 2008, 5.000%, 7/01/28 – AGC Insured 
      
400 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, LifeBridge Health 
7/21 at 100.00 
A 
423,728 
   
System, Series 2011, 6.000%, 7/01/41 
      
900 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, MedStar Health, 
8/14 at 100.00 
A2 
920,673 
   
Series 2004, 5.375%, 8/15/24 
      
1,690 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, MedStar Health, 
5/16 at 100.00 
AA+ 
1,726,842 
   
Series 2007, 5.250%, 5/15/46 – BHAC Insured 
      
650 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical 
1/12 at 100.00 
BBB 
645,723 
   
Center Issue, Series 2001, 5.625%, 7/01/31 
      
   
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical 
      
   
Center Issue, Series 2007A: 
      
525 
  
5.000%, 7/01/37 
7/17 at 100.00 
BBB 
453,994 
1,185 
  
5.500%, 7/01/42 
7/17 at 100.00 
BBB 
1,085,081 
850 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Peninsula Regional 
7/16 at 100.00 
A 
842,775 
   
Medical Center, Series 2006, 5.000%, 7/01/36 
      
1,000 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, The Johns Hopkins 
5/20 at 100.00 
AA– 
1,024,030 
   
Health System Obligated Group Issue, Series 2010, 5.000%, 5/15/40 
      
1,845 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Union Hospital of 
7/12 at 100.00 
A3 
1,851,458 
   
Cecil County, Series 2002, 5.625%, 7/01/32 
      
   
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Washington County 
      
   
Hospital, Series 2008: 
      
1,220 
  
5.750%, 1/01/38 
1/18 at 100.00 
BBB– 
1,187,633 
500 
  
6.000%, 1/01/43 
1/18 at 100.00 
BBB– 
500,210 
95 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Western Maryland 
7/16 at 100.00 
Baa1 
95,642 
   
Health, Series 2006A, 5.000%, 7/01/34 – NPFG Insured 
      
775 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Refunding Bonds, 
1/13 at 101.00 
Baa2 
783,851 
   
Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 
      
900 
  
Prince George’s County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994, 
1/12 at 100.00 
B3 
594,882 
   
5.300%, 7/01/24 
      
25,355 
  
Total Health Care 
    
24,452,943 
   
Housing/Multifamily – 7.8% (5.1% of Total Investments) 
      
980 
  
Maryland Community Development Administration, Housing Revenue Bonds, Series 2002B, 4.950%, 
7/12 at 100.00 
Aa2 
980,294 
   
7/01/32 (Alternative Minimum Tax) 
      
1,250 
  
Maryland Economic Development Corporation, Senior Lien Student Housing Revenue Bonds, 
10/13 at 100.00 
B3 
926,500 
   
University of Maryland – Baltimore, Series 2003A, 5.625%, 10/01/23 
      
   
Maryland Economic Development Corporation, Student Housing Revenue Bonds, Sheppard Pratt 
      
   
University Village, Series 2001: 
      
20 
  
5.875%, 7/01/21 – ACA Insured 
7/12 at 100.50 
N/R 
19,017 
150 
  
6.000%, 7/01/33 – ACA Insured 
7/12 at 100.50 
N/R 
131,210 
475 
  
Maryland Economic Development Corporation, Student Housing Revenue Refunding Bonds, University 
6/16 at 100.00 
AA+ 
455,511 
   
of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 – CIFG Insured 
      
   
Montgomery County Housing Opportunities Commission, Maryland, Multifamily Housing Development 
      
   
Bonds, Series 2002B: 
      
515 
  
5.100%, 7/01/33 (Alternative Minimum Tax) 
7/12 at 100.00 
Aaa 
515,608 
3,000 
  
5.200%, 7/01/44 (Alternative Minimum Tax) 
7/12 at 100.00 
Aaa 
2,997,420 
6,390 
  
Total Housing/Multifamily 
    
6,025,560 
   
Housing/Single Family – 8.7% (5.8% of Total Investments) 
      
1,470 
  
Maryland Community Development Administration Department of Housing and Community Development, 
9/18 at 100.00 
Aa2 
1,520,642 
   
Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 
      
505 
  
Maryland Community Development Administration Department of Housing and Community Development, 
3/20 at 100.00 
Aa2 
527,518 
   
Residential Revenue Bonds, Series 2010B, 5.250%, 9/01/35 
      
   
Maryland Community Development Administration, Department of Housing and Community 
      
   
Development, Residential Revenue Bonds, Series 2006: 
      
1,200 
  
4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 
3/16 at 100.00 
Aa2 
1,209,636 
595 
  
4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 
9/15 at 100.00 
Aa2 
599,468 
815 
  
4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 
9/16 at 100.00 
Aa2 
818,407 
   
Maryland Community Development Administration, Department of Housing and Community 
      
   
Development, Residential Revenue Bonds, Series 2007: 
      
350 
  
5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 
3/17 at 100.00 
Aa2 
353,770 
620 
  
4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 
3/17 at 100.00 
Aa2 
605,232 
1,160 
  
Maryland Community Development Administration, Department of Housing and Community 
9/14 at 100.00 
Aa2 
1,147,136 
   
Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative 
      
   
Minimum Tax) (UB) 
      
6,715 
  
Total Housing/Single Family 
    
6,781,809 
   
Industrials – 4.0% (2.6% of Total Investments) 
      
1,590 
  
Maryland Economic Development Corporation, Economic Development Revenue Bonds, Transportation 
6/20 at 100.00 
Baa3 
1,571,572 
   
Facilities Project, Series 2010A, 5.750%, 6/01/35 
      
510 
  
Maryland Economic Development Corporation, Solid Waste Disposal Revenue Bonds, Waste 
4/12 at 101.00 
BBB 
522,286 
   
Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 
      
1,000 
  
Northeast Maryland Waste Disposal Authority, Baltimore, Resource Recovery Revenue Bonds, RESCO 
No Opt. Call 
BBB 
1,010,120 
   
Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) 
      
3,100 
  
Total Industrials 
    
3,103,978 
   
Long-Term Care – 5.8% (3.8% of Total Investments) 
      
1,050 
  
Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, Series 2007A, 5.000%, 1/01/37 
1/17 at 100.00 
BBB+ 
970,526 
380 
  
Gaithersburg, Maryland, Economic Development Revenue Bonds, Asbury Methodist Homes Inc., 
1/20 at 100.00 
N/R 
397,180 
   
Series 2009B, 6.000%, 1/01/23 
      
1,500 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Charlestown 
1/21 at 100.00 
N/R 
1,546,890 
   
Community Issue, Series 2010, 6.250%, 1/01/45 
      
400 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Edenwald, Series 
7/16 at 100.00 
N/R 
357,580 
   
2006A, 5.400%, 1/01/31 
      
   
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm 
      
   
Presbyterian Community, Series 2007A: 
      
280 
  
5.000%, 1/01/17 
No Opt. Call 
N/R 
277,273 
520 
  
5.250%, 1/01/27 
1/17 at 100.00 
N/R 
428,823 
540 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Ridge 
7/17 at 100.00 
A– 
493,555 
   
Retirement Community, Series 2007, 4.750%, 7/01/34 
      
4,670 
  
Total Long-Term Care 
    
4,471,827 
   
Tax Obligation/General – 10.7% (7.0% of Total Investments) 
      
380 
  
Carroll County, Maryland, Consolidated Public Improvement Bonds, Series 2005A, 5.000%, 12/01/16 
12/15 at 100.00 
AA+ 
446,485 
710 
  
Frederick, Maryland, General Obligation Bonds, Series 2005, 5.000%, 8/01/16 – NPFG Insured 
8/15 at 100.00 
AA 
823,650 
1,000 
  
Maryland National Capital Park Planning Commission, Prince George’s County, General Obligation 
1/14 at 100.00 
AAA 
1,097,620 
   
Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 
      
1,850 
  
Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 
No Opt. Call 
AAA 
2,166,073 
   
2005A, 5.000%, 7/01/15 
      
1,440 
  
Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 
No Opt. Call 
AAA 
1,717,056 
   
2006A, 5.000%, 5/01/16 
      
1,000 
  
Prince George’s County, Maryland, General Obligation Consolidated Public Improvement Bonds, 
No Opt. Call 
AAA 
1,012,180 
   
Series 2004C, 5.000%, 12/01/11 
      
1,000 
  
St. Mary’s County, Maryland, General Obligation Hospital Bonds, Series 2002, 5.000%, 10/01/12 
No Opt. Call 
AA 
1,052,420 
7,380 
  
Total Tax Obligation/General 
    
8,315,484 
   
Tax Obligation/Limited – 30.6% (20.1% of Total Investments) 
      
185 
  
Anne Arundel County, Maryland, Special Obligation Bonds, National Business Park – North 
7/18 at 102.00 
N/R 
179,611 
   
Project, Series 2010, 6.100%, 7/01/40 
      
130 
  
Frederick County, Maryland, Lake Linganore Village Community Development Special Obligation 
7/12 at 100.00 
N/R 
130,514 
   
Bonds, Series 2001A, 5.600%, 7/01/20 – RAAI Insured 
      
   
Fredrick County, Maryland, Special Obligation Bonds, Urbana Community Development Authority, 
      
   
Series 2010A: 
      
1,150 
  
5.000%, 7/01/30 
7/20 at 100.00 
A– 
1,185,121 
250 
  
5.000%, 7/01/40 
7/20 at 100.00 
A– 
252,205 
450 
  
Hyattsville, Maryland, Special Obligation Bonds, University Town Center Project, Series 2004, 
7/14 at 102.00 
N/R 
410,580 
   
5.750%, 7/01/34 
      
5,000 
  
Maryland Department of Transportation, Consolidated Transportation Revenue Bonds, Series 2002, 
No Opt. Call 
AAA 
6,008,850 
   
5.500%, 2/01/16 
      
450 
  
Maryland Economic Development Corporation, Lease Revenue Bonds, Montgomery County Town 
9/12 at 100.00 
AA+ 
471,893 
   
Square Parking Garage, Series 2002A, 5.000%, 9/15/13 
      
2,935 
  
Maryland Economic Development Corporation, Lease Revenue Bonds, Montgomery County Wayne 
9/12 at 100.00 
AA+ 
3,073,356 
   
Avenue Parking Project, Series 2002A, 5.250%, 9/15/16 
      
   
Maryland Stadium Authority, Lease Revenue Bonds, Montgomery County Conference Center 
      
   
Facilities, Series 2003: 
      
1,465 
  
5.000%, 6/15/21 
6/13 at 100.00 
AA+ 
1,565,777 
1,620 
  
5.000%, 6/15/23 
6/13 at 100.00 
AA+ 
1,721,315 
1,410 
  
Prince George’s County, Maryland, Special Obligation Bonds, National Harbor Project, Series 
7/15 at 100.00 
N/R 
1,265,785 
   
2005, 5.200%, 7/01/34 
      
542 
  
Prince George’s County, Maryland, Special Tax District Bonds, Victoria Falls Project, Series 
7/13 at 100.00 
N/R 
471,014 
   
2005, 5.250%, 7/01/35 
      
1,200 
  
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 
No Opt. Call 
Baa1 
1,150,680 
   
7/01/31 – AMBAC Insured 
      
   
Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, 
      
   
Series 2002G: 
      
1,000 
  
5.250%, 7/01/17 
7/12 at 100.00 
Baa1 
1,013,910 
1,205 
  
5.250%, 7/01/20 
7/12 at 100.00 
Baa1 
1,215,182 
1,275 
  
5.250%, 7/01/21 
7/12 at 100.00 
Baa1 
1,281,936 
1,500 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 
8/19 at 100.00 
A+ 
1,554,390 
   
2009A, 5.750%, 8/01/37 
      
700 
  
Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 
No Opt. Call 
A3 
785,477 
   
5.500%, 7/01/19 – NPFG Insured 
      
22,467 
  
Total Tax Obligation/Limited 
    
23,737,596 
   
Transportation – 3.0% (2.0% of Total Investments) 
      
2,210 
  
Maryland Transportation Authority, Revenue Bonds, Transportation Facilities Projects, Series 
7/17 at 100.00 
AA+ 
2,367,175 
   
2007, 5.000%, 7/01/30 – AGM Insured (UB) 
      
   
U.S. Guaranteed – 22.6% (14.9% of Total Investments) (4) 
      
1,000 
  
Annapolis, Maryland, General Obligation Public Improvement Refunding Bonds, Series 2002, 
4/12 at 101.00 
AA (4) 
1,034,710 
   
4.375%, 4/01/17 (Pre-refunded 4/01/12) 
      
1,000 
  
Baltimore Board of School Commissioners, Maryland, Revenue Bonds, City Public School System, 
5/13 at 100.00 
AA+ (4) 
1,078,690 
   
Series 2003A, 5.000%, 5/01/15 (Pre-refunded 5/01/13) 
      
255 
  
Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 2006C, 5.000%, 7/01/31 
7/16 at 100.00 
AA (4) 
305,072 
   
(Pre-refunded 7/01/16) – AMBAC Insured 
      
1,260 
  
Charles County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 
1/12 at 101.00 
Aa1 (4) 
1,292,684 
   
2002, 4.400%, 1/15/16 (Pre-refunded 1/15/12) 
      
2,200 
  
Maryland Economic Development Corporation, Lease Revenue Bonds, Department of Transportation 
6/12 at 100.50 
Aaa 
2,284,260 
   
Headquarters Building, Series 2002, 4.750%, 6/01/22 (Pre-refunded 6/01/12) 
      
285 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Helix Health, 
No Opt. Call 
N/R (4) 
322,731 
   
Series 1997, 5.000%, 7/01/17 – AMBAC Insured (ETM) 
      
725 
  
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, LifeBridge Health 
7/14 at 100.00 
A2 (4) 
813,639 
   
System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 
      
585 
  
Maryland Transportation Authority, Revenue Refunding Bonds, Transportation Facilities 
No Opt. Call 
AAA 
678,840 
   
Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 
      
4,860 
  
Prince George’s County Housing Authority, Maryland, GNMA Collateralized Mortgage Revenue 
11/12 at 100.00 
N/R (4) 
5,103,825 
   
Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 (Pre-refunded 11/20/12) 
      
1,000 
  
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, 
No Opt. Call 
Aaa 
1,174,269 
   
5.125%, 6/01/24 – AMBAC Insured (ETM) 
      
235 
  
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 
2/12 at 100.00 
Aaa 
240,169 
   
5.500%, 8/01/29 (Pre-refunded 2/01/12) 
      
2,000 
  
University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2002A, 5.125%, 
4/12 at 100.00 
AA+ (4) 
2,058,419 
   
4/01/22 (Pre-refunded 4/01/12) 
      
1,000 
  
Washington Suburban Sanitary District, Montgomery and Prince George’s Counties, Maryland, 
6/15 at 100.00 
AAA 
1,164,199 
   
Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 (Pre-refunded 6/01/15) 
      
16,405 
  
Total U.S. Guaranteed 
    
17,551,507 
   
Utilities – 1.6% (1.1% of Total Investments) 
      
1,250 
  
Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, 
11/11 at 100.00 
N/R 
1,252,713 
   
7.400%, 9/01/19 (Alternative Minimum Tax) 
      
   
Water and Sewer – 5.4% (3.5% of Total Investments) 
      
2,590 
  
Baltimore, Maryland, Revenue Refunding Bonds, Wastewater Projects, Series 2002A, 5.125%, 
7/12 at 100.00 
AA 
2,610,072 
   
7/01/42 – NPFG Insured 
      
345 
  
Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 2006C, 5.000%, 7/01/31 – 
7/16 at 100.00 
AA 
361,166 
   
AMBAC Insured 
      
660 
  
Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 2007D, 5.000%, 7/01/32 – 
7/17 at 100.00 
AA 
695,929 
   
AMBAC Insured 
      
430 
  
Maryland Water Quality Financing Administration, Revolving Loan Fund Revenue Bonds, Series 
No Opt. Call 
AAA 
506,066 
   
2005A, 5.000%, 9/01/15 
      
4,025 
  
Total Water and Sewer 
    
4,173,233 
$ 135,847 
  
Total Investments (cost $115,918,241) – 152.1% 
    
118,055,295 
   
Floating Rate Obligations – (5.5)% 
    
(4,255,000) 
   
MuniFund Term Preferred Shares, at Liquidation Value – (48.7)% (5) 
    
(37,766,000) 
   
Other Assets Less Liabilities – 2.1% 
    
1,563,143 
   
Net Assets Applicable to Common Shares – 100% 
    
$ 77,597,438 
 
 
 
 
 
 
 

 
Fair Value Measurements
 
Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is 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 methodologies 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 August 31, 2011:
 
         
 
Level 1 
Level 2 
Level 3 
Total 
Investments: 
        
Municipal Bonds 
$ — 
$118,055,295 
$ — 
$118,055,295 
 
 
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 
$ 606,465 
Gains (losses): 
  
Net realized gains (losses) 
— 
Net change in unrealized appreciation (depreciation) 
(11,911)
Purchases at cost 
— 
Sales at proceeds 
— 
Net discounts (premiums) 
328 
Transfers in to 
— 
Transfers out of 
(594,882)
Balance at the end of period 
$         — 
 
 
During the period ended August 31, 2011, the Fund recognized no significant transfers to or from Level 1 or Level 2. Transfers in/or out of Level 3 are shown using end of period values.
 
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 August 31, 2011, the cost of investments was $111,958,248.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at August 31, 2011, were as follows:
 
   
Gross unrealized: 
  
Appreciation 
$ 4,612,099 
Depreciation 
(2,770,029)
Net unrealized appreciation (depreciation) of investments 
$ 1,842,070 
 
 
     
(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 highest of Standard & Poor’s Group ("Standard & Poor's"), Moody’s Investor Service, Inc. 
   
("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB 
   
by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of 
   
these national rating agencies. 
(4) 
  
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. Bonds backed by U.S. Government or agency
    securities are given an implied rating equal to the rating of such securities.
(5) 
  
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.0%. 
N/R 
  
Not rated. 
WI/DD 
  
Purchased on a when-issued or delayed delivery basis. 
(ETM) 
  
Escrowed to maturity. 
(IF) 
  
Inverse floating rate investment. 
(UB) 
  
Underlying bond of an inverse floating rate trust reflected as a financing transaction. 
 

 
 
 
 
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 Maryland Dividend Advantage Municipal Fund 3 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         October 28, 2011        
 
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         October 28, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         October 28, 2011