Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 163

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 163
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grades its assessment of the credit characteristics of a particular issuer. 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 MVT disposes of a portfolio security subsequent to its being downgraded, MVT may experience a greater risk of loss than if such
security had been sold prior to such downgrade.

MVT does not ordinarily invest more than 25% of its managed assets (taken at market
value) in municipal obligations whose issuers are located in the same state.

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In addition, MVT may purchase MVT 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 MVT’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of MVT’s common shares. MVT may
purchase insured bonds and may purchase insurance for bonds in its portfolio.

MVT may invest in certain tax exempt securities classified
as PABs (in general, bonds that benefit non-governmental entities) that may subject certain investors in MVT to an alternative minimum tax. The percentage of MVT’s total assets invested in PABs will vary
from time to time. MVT expects that a portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable investment for investors who are subject to the federal
alternative minimum tax or who would become subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be
provided from MVT with that from comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax
position. Special considerations may apply to corporate investors.

The average maturity of MVT’s portfolio securities varies from
time to time based upon an assessment of economic and market conditions by the Investment Advisor. MVT’s portfolio at any given time may include long- term and intermediate-term MVT Municipal