Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 226

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 226
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 respect to such investments by, the counterparties with which it deals. The Investment Advisor will seek to minimize MVF’s exposure to counterparty risk by
entering into such transactions with counterparties the Investment Advisor believes to be creditworthy at the time it enters into the transaction. Certain option transactions and Strategic Transactions may require MVF to provide collateral to secure
its performance obligations under a contract, which would also entail counterparty credit risk.

Restricted and Illiquid Securities.Certain of MVF’s investments may be illiquid. Illiquid securities are securities which cannot be sold within seven days in the ordinary course of business at approximately the value used by MVF in determining its NAV. Illiquid securities
are subject to legal or contractual restrictions on disposition or lack of an established secondary trading market. The sale of restricted and illiquid securities often requires more time and results in higher brokerage charges or dealer discounts
and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the OTC markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on
resale.

Repurchase Agreements.As temporary investments, MVF may invest in repurchase agreements. A repurchase agreement is a
contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during MVF’s holding period.
Repurchase agreements are considered to be loans collateralized by the underlying security that is the subject of the repurchase contract. MVF may only enter into repurchase agreements with registered securities dealers or domestic banks that, in
the opinion of the Investment Advisor, present minimal credit risk. The risk to MVF is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the
time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is a risk of loss of both principal and interest. In the event of default, the collateral may be sold but
MVF might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of
the security, realization upon the collateral by MVF may be delayed or limited. The Investment Advisor will monitor the value of the collateral