Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 211

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 211
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 MVF will generally result in capital gain distributions subject to
federal capital gains taxation.

MVF ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to
time, MVF 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 MVF Municipal Bonds for investment by MVF.

Description of MVF Municipal Bonds

See
“The Acquiring Fund’s Investments – Description of MYI Municipal Bonds” for additional information regarding the types of municipal bonds in which MVF invests.

Temporary Investments

During temporary
defensive periods (e.g., times when, in Investment Advisor’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at
which

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long-term or intermediate-term MVF Municipal Bonds are available), and in order to keep cash on hand fully invested, MVF may invest up to 100% of its total assets in liquid, short-term
investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of other open- or closed-end investment companies that
invest primarily in MVF Municipal Bonds of the type in which MVF may invest directly. MVF intends to invest in taxable short-term investments only in the event that suitable tax-exempt temporary investments
are not available at reasonable prices and yields. MVF’s stated expectation is that it will invest only in taxable temporary investments which are U.S. government securities and which mature within one year from the date of purchase or carry a
variable or floating rate of interest (such short-term obligations being referred to herein as “Temporary Investments”). Temporary Investments of MVF may include certificates of deposit issued by U.S. banks with assets of at least
$1 billion, commercial paper or corporate notes, bonds or debentures with a remaining maturity of one year or less, or repurchase agreements. See “Repurchase Agreements.” To the extent MVF invests in Temporary Investments, MVF will
not at such times be in a position to achieve its investment objective of tax-exempt income.

Short-term taxable
fixed income investments include, without limitation, the following:

(1) U.S. Government securities, including bills, notes and
bonds differing as to maturity and rates of interest that are either issued or