Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 214

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 214
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 Residual holder will realize a loss on its investment,
particularly if the TOB Floater holders are paid before the TOB Residual holders. The risk of such a loss may be greater during volatile market conditions when it may be difficult to sell the bonds held by a TOB Trust.

TOB Trusts are typically supported by a liquidity facility provided by a TOBs Liquidity Provider that allows the holders of the TOB Floaters
to tender their TOB Floaters in exchange for payment of par plus accrued interest on any business day (subject to the non-occurrence of a termination event). The tendered TOB Floaters are remarketed
by a remarketing agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the TOBs Liquidity Provider to purchase the tendered TOB Floaters. Any loans made by the TOBs Liquidity Provider will be secured by the purchased
TOB Floaters held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

MIY
may invest in a TOB Trust on either a non-recourse or recourse basis. When MIY invests in TOB Trusts on a non-recourse basis, and the TOBs Liquidity
Provider is required to make a payment under the liquidity facility, the

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TOBs Liquidity Provider will typically liquidate all or a portion of the municipal bonds held in the TOB Trust and then fund the balance, if any, of the Liquidation Shortfall. If MIY invests in a
TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the TOBs Liquidity Provider pursuant to which MIY is required to reimburse the TOBs Liquidity Provider the amount of any Liquidation Shortfall. As a result,
if MIY invests in a recourse TOB Trust, MIY will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised Funds participate in any such TOB Trust, these losses will be shared ratably, in proportion to their
participation in the TOB Trust.

Under accounting rules, MIY Municipal Bonds of MIY that are deposited into a TOB Trust are investments of
MIY and are presented on MIY’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust are presented as liabilities in MIY’s Statement of Assets and Liabilities. Interest income from the underlying MIY