Company: MYI
Filing Date: 2025-07-15
Form Type: 425
Source: 0001193125-25-159406
Chunk: 38

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-15
Form: 425
Chunk 38
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 constructively owned by the stockholder are sold pursuant to the Offer or                  
 (ii) all the Shares actually owned by the stockholder are sold pursuant to the Offer, the only Shares the stockholder constructively owns are actually owned by such stockholder’s family members, and the stockholder is eligible to waive and 
 effectively waives, under procedures described in Section 302(c) of the Code, such constructive ownership. Stockholders wishing to satisfy the “complete termination” test through waiver of the constructive ownership rules should            
 consult their tax advisers.                                                                                                                                                                                                                     |

| 2. | A Substantially Disproportionate Redemption. The receipt of cash by a stockholder will be                                                                                                                                        
 “substantially disproportionate” with respect to such stockholder within the meaning of Section 302(b)(2) of the Code if (i) the percentage of the total outstanding Shares actually and constructively owned by the stockholder 
 immediately following the sale of Shares pursuant to the Offer is less than 80 percent of the percentage of the total outstanding Shares actually and constructively owned by such stockholder immediately before such sale, and 
 (ii) immediately following the exchange, the stockholder actually and constructively owns less than 50% of the total combined voting power of all classes of voting shares of the Fund.                                          |

| 3. | Not Essentially Equivalent to a Dividend. Even if a sale by a stockholder fails to meet the                                                                                                                                                             
 “complete redemption” or “substantially disproportionate” tests, a stockholder may nevertheless meet the “not essentially equivalent to a dividend” test. Whether a specific redemption is “not essentially equivalent                                  
 to a dividend” depends on the individual stockholder’s facts and circumstances. In any event, the redemption must result in a “meaningful reduction” of the stockholder’s proportionate interest in the Fund. The IRS has                               
 indicated in a published ruling that, in the case of a minority stockholder in a publicly held corporation whose relative stock investment in the corporation was minimal and who exercised no control over corporate affairs, a small reduction in the 
 percentage ownership interest of such stockholder in such corporation was sufficient to constitute a “meaningful reduction.” Stockholders seeking to rely on this test should consult their own tax advisers as to the application of this              
 particular standard to their own situations.                                                                                                                                                                                                            |

Backup Withholding.The Depositary may be required to withhold 24% of the gross proceeds paid to a stockholder or other payee pursuant to the Offer unless either: (a