Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 167

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 167
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 inopportune times or for prices other than current market values, may limit the amount of appreciation
MVT can realize on an investment or may cause MVT to hold a security that it might otherwise sell. Furthermore, MVT may only engage in Strategic Transactions from time to time and may not necessarily be engaging in hedging activities when movements
in interest rates occur.

For so long as the VMTP Shares are rated by a rating agency, MVT’s use of options and certain financial
futures and options thereon will be subject to such rating agency’s guidelines and limitations on such transactions. In order to maintain ratings on the VMTP Shares from one or more rating agencies, MVT may be required to limit its use of
Strategic Transactions in accordance with the specified guidelines of the applicable rating agencies.

Certain federal income tax
requirements may restrict or affect the ability of MVT to engage in Strategic Transactions. In addition, the use of certain Strategic Transactions may give rise to taxable income and have certain other consequences.

Put and Call Options on Securities and Indices. MVT may purchase and sell put and call options on securities and indices. A put option
gives the purchaser of the option the right to sell and the writer the obligation to buy the underlying security at the exercise price during the option period. MVT may also purchase and sell options on bond indices (“index options”).
Index options are similar to options on securities except that, rather than taking or making delivery of securities underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash upon exercise of
the option if the level of the bond index upon which the option is based is greater, in the case of a call, or less, in the case of a put, than the exercise price of the option. The purchase of a put option on a debt security could protect
MVT’s holdings in a security or a number of securities against a substantial decline in the market value. A call option gives the purchaser of the option the right to buy and the seller the obligation to sell the underlying security or index at
the exercise price during the option period or for a specified period prior to a fixed date. The purchase of a call option on a security could protect MVT against an increase in the price of a security that it intended to purchase in the future.

Writing Covered Call Options. MVT is authorized to write (i.e., sell) covered call options with respect to MVT Municipal
Bonds it owns, thereby giving the