Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 186

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 186
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 the opinion of the
Investment Advisor, prevailing market or financial conditions warrant. Taxable money market obligations will yield taxable income. MIY also may invest in VRDOs and VRDOs in the form of Participating VRDOs in variable rate tax-exempt obligations held by a financial institution. MIY’s hedging strategies are not fundamental policies and may be modified by the Board of MIY without the approval of MIY’s shareholders. MIY is also
authorized to invest in indexed and inverse floating rate obligations for hedging purposes and to seek to enhance return.

MIY may invest
in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if MIY receives an opinion of counsel to the issuer that such securities pay interest that is excludable from gross income for federal
income 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 MIY Municipal Bonds.
Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in MIY Municipal Bonds, to the extent such investments
are permitted by MIY’s investment restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment
in MIY Municipal Bonds as well as many of the risks associated with investments in derivatives.

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

Description of MIY Municipal Bonds

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

Strategic Transactions and Other Management Techniques

MIY may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, but not limited to,
credit default swaps) and may purchase and sell exchange-listed and OTC put and call options on securities and swap contracts, financial indices and futures contracts and use other derivative instruments or management techniques (collectively,
“Strategic Transactions”). These Strategic