Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 134

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 134
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 Municipal Bonds as well as many of the risks associated with investments in derivatives.

The Acquiring Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time,
the Acquiring Fund 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 MYI Municipal Bonds for investment by the
Acquiring Fund.

Description of MYI Municipal Bonds

Set forth below is a detailed description of the MYI Municipal Bonds in which the Acquiring Fund invests. Information with respect to ratings
assigned to tax-exempt obligations that the Acquiring Fund may purchase is set forth in to this Joint Proxy Statement/Prospectus. Obligations are included within the term MYI
Municipal Bonds if the interest paid thereon is excluded from gross income for federal income tax purposes in the opinion of bond counsel to the issuer.

MYI Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the construction of a wide range of
public facilities, refunding of outstanding obligations and obtaining funds for general operating expenses and loans to other public institutions and facilities. In addition, certain types of PABs are issued by or on behalf of public authorities to
finance various privately owned or operated facilities, including among other things, airports, public ports, mass commuting facilities, multi-family housing projects, as well as facilities for water supply, gas, electricity, sewage or solid waste
disposal and other specialized facilities. Other types of PABs, the proceeds of which are used for the construction, equipment or improvement of privately operated industrial or commercial facilities, may constitute MYI Municipal Bonds. The interest
on MYI Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal classifications of MYI Municipal Bonds are “general obligation” bonds and “revenue” bonds, which latter category
includes PABs and, for bonds issued on or before

68

August 15, 1986, industrial development bonds. MYI Municipal Bonds typically are issued
to finance public projects, such as roads or public buildings, to pay general operating expenses or to refinance outstanding debt. MYI Municipal Bonds may also be issued for private activities, such as housing, medical and educational facility
construction, or for privately owned industrial development and pollution control projects. General obligation bonds are