Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 236

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 236
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 the TOB Trust and then fund the balance, if any, of the Liquidation Shortfall. If MVF invests in a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the TOBs Liquidity Provider pursuant to which MVF is
required to reimburse the TOBs Liquidity Provider the amount of any Liquidation Shortfall. As a result, if MVF invests in a recourse TOB Trust, MVF will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised
Funds participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB Trust.

Under accounting
rules, municipal securities of MVF that are deposited into a TOB Trust are investments of MVF and are presented on MVF’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust are presented as liabilities in MVF’s
Statement of Assets and Liabilities. Interest income from the underlying municipal securities is recorded by MVF on an accrual basis. Interest expense incurred on the TOB Floaters and other expenses related to remarketing, administration, trustee
and other services to a TOB Trust are reported as expenses of MVF. In addition, under accounting rules, loans made to a TOB Trust sponsored by MVF may be presented as loans of MVF in MVF’s financial statements even if there is no recourse to
MVF’s assets.

For TOB Floaters, generally, the interest rate earned will be based upon the market rates for MVF Municipal Bonds with maturities or
remarketing provisions that are comparable in duration to the periodic interval of the tender option. Since the tender option feature has a shorter term than the final maturity or first call date of the underlying MVF Municipal Bonds deposited in
the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as well as the credit strength of that institution. The perceived reliability and creditworthiness,
of many major financial institutions, some of which sponsor and/or provide liquidity support to TOB Trusts increases the risk associated with TOB Floaters. This in turn may reduce the desirability of TOB Floaters as investments, which could impair
the viability or availability of TOB Trusts.

Rule 18f-4 under the 1940 Act permits MVF to enter into TOB Trust
transactions,