Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 188

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 188
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 or sold to dealers, financial institutions or other counterparties which have entered into direct agreements with MIY. With OTC options, such variables as expiration date,
exercise price

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and premium will be agreed upon between MIY and the counterparty, without the intermediation of a third party such as the OCC. If the counterparty fails to make or take delivery of the securities
underlying an option it has written, or otherwise settle the transaction in accordance with the terms of that option as written, MIY would lose the premium paid for the option as well as any anticipated benefit of the transaction. OTC options and
assets used to cover OTC options written by MIY are considered by the staff of the SEC to be illiquid. The illiquidity of such options or assets may prevent a successful sale of such options or assets, result in a delay of sale, or reduce the amount
of proceeds that might otherwise be realized.

MIY may engage in options and futures transactions on exchanges and options in the over-the-counter markets. MIY will only enter into OTC options with counterparties the Investment Advisor believes to be creditworthy at the time they enter into
such transactions.

The hours of trading for options on debt securities may not conform to the hours during which the underlying
securities are traded. To the extent that the option markets close before the markets for the underlying securities, significant price and rate movements can take place in the underlying markets that cannot be reflected in the option markets.

Financial Futures Transactions and Options. MIY is authorized to purchase and sell certain exchange traded financial futures contracts
(“”) in order to hedge its investments against declines in value, and to hedge against increases in the cost of securities it intends to purchase or to seek to enhance MIY’s return. However, any
transactions involving financial futures or options (including puts and calls associated therewith) will be in accordance with MIY’s investment policies and limitations. A financial futures contract obligates the seller of a contract to
deliver and the purchaser of a contract to take delivery of the type of financial instrument covered by the contract, or in the case of index-based futures contracts to make and accept a cash settlement, at a specific future time for a specified
price. To hedge its portfolio, MIY may take an investment position in a futures contract which will move in the opposite direction from the portfolio position being hedged. A sale of financial futures contracts may provide a hedge against a decline
in the value of portfolio securities because such depreciation may be