Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 63

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 63
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 the capital loss carryforwards of the Combined Fund attributable to MVT, MIY or MVF may be subject to tax loss limitation rules to the extent outlined above, it is currently expected that such tax loss limitation rules should not have a material adverse effect on the Combined Fund’s utilization of MVT’s, MIY’s or MVF’s capital loss carryforward as compared with what each Fund’s utilization of its own capital loss carryforward would be without the Reorganizations. The ability of each Fund (and the Combined Fund) to utilize any capital loss carryforwards now or in the future depends on many variables and assumptions, including but not limited to, projected performance of a Fund, the unrealized gain/loss position of a Fund, the types of securities held by a Fund, the current and future market environment (including the level of interest rates), portfolio turnover and applicable law, and is, therefore, highly uncertain. As of July 31, 2025, the Funds’ unused capital loss carryforwards, which have no expiration date and may be carried forward indefinitely, were as follows: Capital Loss Carryforward Amount

| MVT           |     | MIY           |     | MVF           |     | Acquiring Fund (MYI) |
| $(40,196,360) |     | $(40,982,025) |     | $(78,666,611) |     | $(95,450,392)        |

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Due to the operation of these tax loss limitation rules, it is possible that shareholders of
MVT, MIY or MVF or the Acquiring Fund would receive taxable distributions of short-term and long-term capital gains earlier than they would have in the absence of the Reorganizations. Such taxable distributions will be treated either as ordinary
income (and not as favorably taxed “qualified dividend income”) if such capital gains are short-term or as favorably taxed capital gain dividends if such capital gains are long-term. The actual financial effect of the loss limitation
rules on a shareholder of MVT, MIY or MVF whose losses are subject to the loss limitation rules would depend on many variables, including MVT’s, MIY’s or MVF’s expected growth rate if the relevant Reorganization were not to occur
(i.e., whether, in the absence of the Reorganizations, MVT, MIY or MVF would generate sufficient capital gains against which to utilize its capital loss carryforwards (and certain realized built-in
losses), in excess of what would