Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 126

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 126
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 less (such short-term obligations being referred to herein as “Temporary Investments”). In addition, the Acquiring Fund
reserves the right as a defensive measure to invest temporarily a greater portion of its assets in Temporary Investments, when, in the opinion of the Investment Advisor, prevailing market or financial conditions warrant. Taxable money market
obligations will yield taxable income. The Acquiring Fund also may invest in VRDOs and VRDOs in the form of Participating VRDOs in variable rate tax-exempt obligations held by a financial institution. The
Acquiring Fund’s hedging strategies are not fundamental policies and may be modified by the Board of the Acquiring Fund without the approval of the Acquiring Fund’s shareholders. The Acquiring Fund is also authorized to invest in indexed
and inverse floating rate obligations for hedging purposes and to seek to enhance return.

The Acquiring Fund may invest in securities not
issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the Acquiring Fund receives an opinion of counsel to the issuer that such securities pay interest that is excludable from gross income for federal income
tax purposes (“Non-Municipal Tax-Exempt Securities”). Non- Municipal Tax-Exempt
Securities could include trust certificates, partnership interests or other instruments evidencing interest in one or more long-term MYI Municipal Bonds. Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in MYI Municipal Bonds, to the extent such investments are permitted by the Acquiring Fund’s investment
restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment in MYI Municipal Bonds as well as many
of the risks associated with investments in derivatives.

The Acquiring Fund ordinarily does not intend to realize significant investment
income not exempt from federal income tax. From time to time, the Acquiring Fund may realize taxable capital gains.

Federal tax
legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result, this legislation and legislation that may be enacted in the future may
affect the availability of MYI Municipal Bonds for investment by the Acquiring Fund.

Description of MYI Municipal Bonds

Set forth below is a detailed description of the MYI Municipal Bonds in which the Acquiring Fund invests. Information with respect to ratings
assigned to tax-exempt obligations that the Acquiring Fund may purchase is set