Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 214

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 214
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 Corporation.

(3) Repurchase agreements, which involve purchases of debt securities. At the time MVF purchases securities
pursuant to a repurchase agreement, it simultaneously agrees to resell and redeliver such securities to the seller, who also simultaneously agrees to buy back the securities at a fixed price and time. This assures a predetermined yield for MVF
during its holding period, since the resale price is always greater than the purchase price and reflects an agreed-upon market rate. Such actions afford an opportunity for MVF to invest temporarily available cash. MVF may enter into repurchase
agreements only with respect to obligations of the U.S. Government, its agencies or instrumentalities; certificates of deposit; or bankers’ acceptances in which MVF may invest. Repurchase agreements may be considered loans to the seller,
collateralized by the underlying securities. The risk to MVF is limited to the ability of the seller to pay the agreed-upon sum on the repurchase date; in the event of default, the repurchase agreement provides that MVF is entitled to sell the
underlying collateral. If the value of the collateral declines after the agreement is entered into, and if the seller defaults under a repurchase agreement when the value of the underlying collateral is less than the repurchase price, MVF could
incur a loss of both principal and interest. The Investment Advisor monitors the value of the collateral at the time the action is entered into and at all times during the term of the repurchase agreement. The Investment Advisor does so in an effort
to determine that the value of the collateral always equals or exceeds the agreed-upon repurchase price to be paid to MVF. If the seller were to be subject to a federal bankruptcy proceeding, the ability of MVF to liquidate the collateral could be
delayed or impaired because of certain provisions of the bankruptcy laws.

(4) Commercial paper, which consists of short-term
unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Master demand notes are

102

direct lending arrangements between MVF and a corporation. There is no secondary market for such notes.
However, they are redeemable by MVF at any time. The Investment Advisor will consider the financial condition of the corporation (e.g., earning power, cash flow and other liquidity ratios) and will continuously monitor the corporation’s ability
to meet all of its financial obligations, because MVF’s liquidity might be impaired if the corporation were unable to