Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 227

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 227
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Counterparty Credit Standards.
To the extent that MVF engages in principal transactions, including, but not limited to, OTC options, forward currency transactions, swap transactions, repurchase agreements and the purchase and sale of bonds and other fixed-income securities, it
must rely on the creditworthiness of its counterparties under such transactions. In certain instances, the credit risk of a counterparty is increased by the lack of a central clearing house for certain transactions, including certain swap contracts.
In the event of the insolvency of a counterparty, MVF may not be able to recover its assets, in full or at all, during the insolvency process. Counterparties to investments may have no obligation to make markets in such investments and may have the
ability to apply essentially discretionary margin and credit requirements. Similarly, MVF will be subject to the risk of bankruptcy of, or the inability or refusal to perform with respect to such investments by, the counterparties with which it
deals. The Investment Advisor will seek to minimize MVF’s exposure to counterparty risk by entering into such transactions with counterparties the Investment Advisor believes to be creditworthy at the time it enters into the transaction.
Certain option transactions and Strategic Transactions may require MVF to provide collateral to secure its performance obligations under a contract, which would also entail counterparty credit risk.

Restricted and Illiquid Securities.Certain of MVF’s investments may be illiquid. Illiquid securities are securities which cannot
be sold within seven days in the ordinary course of business at approximately the value used by MVF in determining its NAV. Illiquid securities are subject to legal or contractual restrictions on disposition or lack of an established secondary
trading market. The sale of restricted and illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national
securities exchanges or in the OTC markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale.

Repurchase Agreements.As temporary investments, MVF may invest in repurchase agreements. A repurchase agreement is a contractual
agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during MVF’s holding period. Repurchase
agreements are considered to be loans collateralized by the underlying security that is the subject of the repurchase contract. MVF may only enter