Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 295

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 295
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’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)        |

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 162

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 have been the “annual loss limitation
amount” had the relevant Reorganizations occurred), the timing and amount of future capital gains recognized by the Combined Fund if the Reorganizations were to occur, and the timing of a historic MVT, MIY or MVF shareholder’s
disposition