Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 182

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 182
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4 under the 1940 Act, among other things, MVT must either use derivatives in a limited manner or comply with an
outer limit on fund leverage risk based on value-at-risk.

86

Temporary Borrowings.MVT may also borrow money as a temporary measure for
extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely dispositions of MVT securities.

MIY’s Investment Objective and Policies

MIY’s investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Michigan
income taxes as is consistent with its investment policies and prudent investment management. MIY seeks to achieve its investment objective by investing at least 80% of an aggregate of MIY’s net assets including proceeds from the issuance of
any preferred stock) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or
instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes and Michigan income taxes (except that the interest may be includable in taxable
income for purposes of the federal alternative minimum tax) (“MIY Municipal Bonds”). MIY may invest directly in securities or synthetically through the use of derivatives. MIY’s investment objective and its policy of investing at
least 80% of an aggregate of MIY’s net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in MIY Municipal Bonds are fundamental policies that may not be changed
without the approval of a majority of the outstanding voting securities of MIY (as defined in 1940 Act, as amended). There can be no assurance that MIY’s investment objective will be realized.

MIY may invest in certain tax-exempt securities classified as PABs (in general, bonds that benefit
nongovernmental entities) that may subject certain investors in MIY to an alternative minimum tax. The percentage of MIY’s total assets invested in PABs will vary from time to time. MIY also will not invest more than 25% of its total assets
(taken at market value at the time of each investment) in MIY Municipal Bonds whose issuers are located in the same state.

Under normal
market conditions, MIY expects to invest at least