Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 209

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 209
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 to adverse economic and
business developments.

MVF’s investment objective and its policy of investing at least 80% of an aggregate of MVF’s net assets (including
proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in MVF Municipal Bonds are fundamental policies that may not be changed without the approval of the holders of a majority of the
outstanding common stock and the outstanding preferred shares, including the VMTP Shares, voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VMTP Shares, voting as a separate class.
A majority of the outstanding means (1) 67% or more of the stock present at a meeting, if the holders of more than 50% of the outstanding stock are present or represented by proxy, or (2) more than 50% of the outstanding stock, whichever is
less.

MVF’s credit quality policies apply only at the time a security is purchased, and MVF is not required to dispose of a security if a rating
agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Investment Advisor may consider such factors as the Investment
Advisor’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that MVF disposes of a portfolio
security subsequent to its being downgraded, MVF may experience a greater risk of loss than if such security had been sold prior to such downgrade.

100

MVF may also purchase MVF Municipal Bonds that are additionally secured by insurance, bank credit agreements
or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market
price paid for insured obligations may reduce MVF’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common stock. MVF may purchase insured bonds and may purchase
insurance for bonds in its portfolio.

MVF may invest in certain tax exempt securities classified as PABs (in general, bonds that benefit non-governmental entities) that may subject certain investors in MVF to an alternative minimum tax. The percentage of MVF’s total assets invested in PABs