Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 130

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 130
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tax purposes (“Non-Municipal Tax-Exempt Securities”). Non- Municipal
Tax-Exempt Securities could include trust certificates, partnership interests or other instruments evidencing interest in one or more long-term MYI Municipal Bonds.
Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in MYI Municipal Bonds, to the extent such investments
are permitted by the Acquiring Fund’s investment restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with
an investment in MYI Municipal Bonds as well as many of the risks associated with investments in derivatives.

The Acquiring Fund
ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Acquiring Fund may realize taxable capital gains.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of MYI Municipal Bonds for investment by the Acquiring Fund.

Description of MYI Municipal Bonds

Set
forth below is a detailed description of the MYI Municipal Bonds in which the Acquiring Fund invests. Information with respect to ratings assigned to tax-exempt obligations that the Acquiring Fund
may purchase is set forth in to this Joint Proxy Statement/Prospectus. Obligations are included within the term MYI Municipal Bonds if the interest paid thereon is excluded from gross income for federal income tax purposes in the
opinion of bond counsel to the issuer.

MYI Municipal Bonds include debt obligations issued to obtain funds for various public purposes,
including the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general operating expenses and loans to other public institutions and facilities. In addition, certain types of PABs are
issued by or on behalf of public authorities to finance various privately owned or operated facilities, including

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among other things, airports, public ports, mass commuting facilities, multi-family housing projects, as well as facilities for water supply, gas, electricity, sewage or solid waste disposal and
other specialized facilities. Other types of PABs, the proceeds of which are used for the construction, equipment or improvement of privately operated industrial or commercial facilities, may constitute MYI Municipal Bonds. The interest on MYI
Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal classifications of