Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 128

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 128
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 Bonds in which the Acquiring Fund invests pay interest or income that, in the opinion
of bond counsel to the issuer, is exempt from regular federal income tax. The Investment Advisor does not conduct its own analysis of the tax status of the interest or income paid by MYI Municipal Bonds held by the Acquiring Fund, but will rely on
the opinion of counsel to the issuer of each such instrument. The Acquiring Fund may also invest in MYI Municipal Bonds issued by United States Territories (such as Puerto Rico or Guam) that are exempt from regular federal income tax. The Acquiring
Fund may invest in other securities that pay interest or income that is, or make other distributions that are, exempt from regular federal income tax and/or state and local personal taxes, regardless of the technical structure of the issuer of the
instrument. The Acquiring Fund treats all of such tax-exempt securities as MYI Municipal Bonds.

The yields on MYI Municipal Bonds are dependent on a variety of factors, including prevailing interest rates and the condition of the general
money market and the MYI Municipal Bond market, the size of a particular offering, the maturity of the obligation and the rating of the issue. The market value of MYI Municipal Bonds will vary with changes in interest rate levels and as a result of
changing evaluations of the ability of bond issuers to meet interest and principal payments.

The Acquiring Fund has not established any
limit on the percentage of its portfolio that may be invested in PABs. The Acquiring Fund may not be a suitable investment for investors who are already subject to the federal alternative minimum tax or who would become subject to the federal
alternative minimum tax as a result of an investment in the Acquiring Fund’s common shares.

General Obligation Bonds. General
obligation bonds are typically secured by the issuer’s pledge of its faith, credit and taxing power for the repayment of principal and the payment of interest. The taxing power of any governmental entity may be limited, however, by provisions
of its state constitution or laws, and an entity’s creditworthiness will depend on many factors, including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s industrial base or
inability to attract new industries, economic limits on the ability to tax without eroding the tax base, state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity relies on federal or
state aid, access to capital markets or other factors beyond the state’s