BLACKROCK MUNIYIELD QUALITY FUND III, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06540

Name of Fund: BlackRock MuniYield Quality Fund III, Inc. (MYI)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Quality Fund III, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2013

Date of reporting period: 04/30/2013

Item 1    –    Schedule of Investments

Schedule of Investments April 30, 2013 (Unaudited)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Alabama – 0.6%

      

Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC),

      

6.00%, 6/01/39

    $ 3,605       $ 4,290,743   

City of Birmingham Alabama, GO, CAB, Series A,

      

3.96%, 3/01/43(a)

      1,940         1,760,957   
     

 

 

  
        6,051,700   
     

 

 

  

Alaska – 2.0%

      

Alaska Housing Finance Corp., RB, General Housing, Series B (NPFGC),

      

5.25%, 12/01/30

      2,000         2,078,340   

Alaska Housing Finance Corp., Refunding RB, Series A,

      

4.13%, 12/01/37

      3,455         3,573,817   

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A,

      

5.50%, 10/01/41

      2,690         3,143,400   

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC),

      

6.00%, 9/01/28

      10,150         12,588,639   
     

 

 

  
        21,384,196   
     

 

 

  

Arizona – 0.5%

      

Maricopa County & Phoenix IDA, Refunding RB, S/F Housing, Series A-2, AMT (Ginnie Mae),

      

5.80%, 7/01/40

      520         535,829   

State of Arizona, COP, Department of Administration, Series A (AGM),

      

5.00%, 10/01/27

      3,725         4,239,720   
     

 

 

  
        4,775,549   
     

 

 

  

California – 14.0%

      

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC),

      

5.40%, 10/01/24(a)

      10,000         11,207,100   

California Health Facilities Financing Authority, RB:

      

Saint Joseph Health System, Series A, 5.75%, 7/01/39

      1,550         1,827,559   

Sutter Health, Series A, 5.00%, 8/15/52

      3,885         4,237,292   

Sutter Health, Series B, 5.88%, 8/15/31

      3,200         3,907,072   

California HFA, RB, Home Mortgage, Series K, AMT,

      

5.50%, 2/01/42

      2,785         2,883,589   

California State Public Works Board, LRB, Judicial Council Projects, Series A,

      

5.00%, 3/01/38

      1,940         2,137,841   

California State University, RB, Systemwide, Series A,

      

5.50%, 11/01/39

      1,525         1,769,320   

California State University, Refunding RB, Systemwide, Series A (AGM),

      

5.00%, 11/01/37

      3,545         3,951,718   

California Statewide Communities Development Authority, RB:

      

Kaiser Permanente, Series A, 5.00%, 4/01/42

      4,030         4,473,300   

Saint Joseph Health System, Series E (AGM), 5.25%, 7/01/47

      4,000         4,555,200   

City of Redding California, COP, Refunding, Series A (AGM),

      

5.00%, 6/01/30

      1,900         2,145,708   

City of San Jose California, Refunding ARB, AMT:

      

Series A (AMBAC), 5.50%, 3/01/32

      11,965         13,392,544   

Series A-1, 5.75%, 3/01/34

      2,300         2,655,281   

Coast Community College District, GO, Election of 2002, Series C (AGM),

      

5.25%, 8/01/33(b)

      8,100         2,833,380   

County of Sacramento California, RB, Senior Series A (AGM),

      

5.00%, 7/01/41

      12,500         13,682,125   

Dublin Unified School District California, GO, CAB, Election of 2004, Series D,

      

5.66%, 8/01/34(b)

      5,000         1,525,300   

Fairfield-Suisun Unified School District California, GO, Election of 2002 (NPFGC),

      

5.50%, 8/01/14(c)

      5,800         6,172,128   

Grossmont Union High School District, GO, CAB, Election of 2004,

      

4.42%, 8/01/31(b)

      5,110         2,300,675   

Long Beach Unified School District, GO, Election of 2008, Series B,

      

4.54%, 8/01/34(b)

      5,000         1,924,950   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM),

      

5.00%, 8/01/32

      1,200         1,351,872   

Norwalk-La Mirada Unified School District California, GO, CAB, Refunding, Election of 2002, Series E (AGC),

      

4.84%, 8/01/38(b)

      7,620         2,276,170   

Oceanside Unified School District California, GO, Series A (AGC),

      

5.25%, 8/01/33

      2,500         2,784,225   

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B(b):

      

4.67%, 8/01/35

      7,820         2,799,482   

4.69%, 8/01/36

      10,000         3,402,900   

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C(b):

      

4.61%, 8/01/37

      8,000         2,647,760   

4.62%, 8/01/38

      12,940         4,081,794   

San Bernardino Community College District, GO, Election of 2002, Series C (AGM),

      

5.00%, 8/01/31

      2,165         2,382,214   

 

    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013   1

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

California (concluded)

      

San Diego Unified School District California, GO, Refunding, CAB, Series R-1,

      

4.35%, 7/01/31(b)

    $ 3,485       $ 1,594,527   

San Francisco Bay Area Rapid Transit District, RB, Sales Tax Revenue (AGM),

      

5.00%, 7/01/14(c)

      10,000         10,547,000   

San Joaquin County Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A,

      

6.00%, 3/01/36

      1,830         2,261,148   

San Marcos Unified School District, GO, Election of 2010, Series A:

      

5.00%, 8/01/34

      1,800         2,041,668   

5.00%, 8/01/38

      1,600         1,801,184   

State of California, GO:

      

5.50%, 3/01/40

      1,020         1,195,073   

Series 2007-2 (NPFGC), 5.50%, 4/01/30

      10         10,397   

Various Purpose, 5.00%, 4/01/42

      2,000         2,234,580   

State of California, GO, Refunding:

      

5.00%, 2/01/38

      4,000         4,480,800   

5.00%, 10/01/41

      2,555         2,842,182   

Various Purpose, 5.00%, 9/01/41

      2,700         3,000,834   

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B,

      

4.67%, 8/01/36(b)

      6,545         2,238,848   

West Valley-Mission Community College District, GO, Refunding, Election of 2004, Series A (AGM),

      

5.00%, 8/01/30

      3,600         3,980,412   
     

 

 

  
        147,537,152   
     

 

 

  

Florida – 11.0%

      

Broward County School Board Florida, COP, Series A (AGM),

      

5.25%, 7/01/33

      13,100         14,836,536   

Broward County Water & Sewer Utility, Refunding RB, Series A,

      

5.25%, 10/01/34

      2,250         2,590,672   

City of Jacksonville Florida, Refunding RB, Transportation, Series A,

      

5.00%, 10/01/30

      770         897,597   

Collier County School Board, COP (AGM),

      

5.00%, 2/15/23

      5,000         5,528,650   

County of Lee Florida, Refunding RB, Series A, AMT:

      

5.63%, 10/01/26

      2,600         3,045,016   

5.38%, 10/01/32

      3,440         3,836,322   

County of Miami-Dade Florida, GO:

      

Series B, 6.38%, 7/01/28

      6,000         7,261,620   

Series B-1, 5.75%, 7/01/33

      3,700         4,312,831   

County of Miami-Dade Florida, RB Transit System Sales Surtax (AGM),

      

5.00%, 7/01/35

      2,800         3,103,744   

County of Miami-Dade Florida, Refunding RB:

      

Miami International Airport AMT (AGC), 5.00%, 10/01/40

      11,000         11,879,230   

Series C (BHAC), 6.00%, 10/01/23

      20,095         24,780,350   

Special Obligation, Series B, 5.00%, 10/01/37

      1,940         2,166,786   

County of Miami-Dade Florida Aviation, Refunding RB, Miami International Airport, Series A, AMT (AGM),

      

5.50%, 10/01/41

      19,020         21,754,886   

Highlands County Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B,

      

6.00%, 11/15/37

      1,750         2,091,828   

Sarasota County Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A,

      

5.63%, 7/01/39

      5,135         5,684,445   

Tampa-Hillsborough County Expressway Authority, Refunding RB, Series A,

      

5.00%, 7/01/42

      1,465         1,642,133   
     

 

 

  
        115,412,646   
     

 

 

  

Georgia – 1.7%

      

Burke County Development Authority, Refunding RB, Oglethorpe Power Corp., Vogtle Project, Series C,

      

5.70%, 1/01/43

      6,450         7,138,021   

City of Atlanta Georgia Department of Aviation, Refunding ARB, General, Series B (AGM),

      

5.25%, 1/01/33

      10,000         10,474,800   
     

 

 

  
        17,612,821   
     

 

 

  

Illinois – 18.4%

      

Chicago Illinois Board of Education, GO, Series A,

      

5.50%, 12/01/39

      6,470         7,386,217   

Chicago Illinois Transit Authority, RB, Sales Tax Receipts,

      

5.25%, 12/01/36

      1,620         1,858,383   

Chicago Park District, GO, Harbor Facilities, Series C:

      

5.25%, 1/01/37

      4,000         4,568,200   

5.25%, 1/01/40

      1,505         1,716,573   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, AMT (NPFGC):

      

Series A, 5.75%, 1/01/39

      9,000         10,576,170   

Series B-2, 5.25%, 1/01/27

      10,000         10,256,800   

Series B-2, 6.00%, 1/01/27

      26,230         27,043,130   

City of Chicago Illinois, GO, CAB, City Colleges (NPFGC)(b):

      

4.31%, 1/01/29

      4,000         2,050,560   

4.47%, 1/01/33

      7,950         3,332,163   

City of Chicago Illinois, Refunding GARB, O’Hare International Airport, General, Third Lien, Series C-2, AMT (AGM),

      

5.25%, 1/01/30

      16,400         16,803,276   

 

2   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013    

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Illinois (concluded)

      

City of Chicago Illinois, Refunding RB, Water System, Second Lien, Series A (AMBAC),

      

5.00%, 11/01/36

    $ 3,500       $ 3,863,265   

Cook County Forest Preserve District, GO, Series C,

      

5.00%, 12/15/37

      890         1,017,386   

Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B,

      

5.00%, 12/15/37

      775         882,640   

Illinois Finance Authority, RB, Series A,

      

5.75%, 8/15/34

      8,700         10,331,946   

Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A,

      

6.00%, 8/15/39

      5,250         6,226,027   

Illinois Municipal Electric Agency, RB, Series A (NPFGC):

      

5.00%, 2/01/35

      17,935         19,562,780   

5.25%, 2/01/35

      15,000         16,645,350   

Illinois State Toll Highway Authority, RB:

      

Series A, 5.00%, 1/01/38(d)

      5,840         6,604,281   

Series B, 5.50%, 1/01/33

      4,000         4,535,040   

Series B (BHAC), 5.50%, 1/01/33

      2,000         2,282,700   

Kane, Kendall, Etc. Counties Community College District No. 516 Illinois, GO, CAB, Series E (NPFGC),

      

4.89%, 12/15/25(b)

      5,000         2,716,600   

Metropolitan Pier & Exposition Authority, RB, CAB, Mccormick Place Expansion Project, Series A (NPFGC)(b):

      

3.76%, 12/15/26

      9,600         5,779,296   

4.40%, 6/15/32

      14,000         6,090,140   

4.50%, 12/15/34

      41,880         15,998,160   

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, Mccormick Place Expansion Project, Series B (AGM),

      

4.95%, 6/15/44(b)

      9,430         2,058,475   

Railsplitter Tobacco Settlement Authority, RB,

      

6.00%, 6/01/28

      1,700         2,076,023   

Regional Transportation Authority, RB, Series C (NPFGC),

      

7.75%, 6/01/20

      1,000         1,248,900   
     

 

 

  
        193,510,481   
     

 

 

  

Indiana – 3.2%

      

City of Indianapolis Indiana, Refunding RB, Second Lien, Series B (AGC),

      

5.25%, 8/15/27

      5,000         5,544,850   

Indiana Finance Authority, RB:

      

Private Activity (Ohio River Bridges), AMT, 5.00%, 7/01/40

      2,425         2,584,080   

Private Activity (Ohio River Bridges), AMT, 5.00%, 7/01/44

      1,400         1,485,890   

Wastewater Utility, 5.25%, 10/01/38

      2,900         3,379,892   

Indiana Municipal Power Agency, RB:

      

Series A (NPFGC), 5.00%, 1/01/37

      3,850         4,229,379   

Series B, 5.75%, 1/01/34

      1,050         1,083,180   

Series B, 6.00%, 1/01/39

      5,000         5,939,850   

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A:

      

5.75%, 1/01/38

      2,900         3,299,852   

(AGC), 5.25%, 1/01/29

      1,350         1,518,453   

(AGC), 5.50%, 1/01/38

      4,250         4,804,710   
     

 

 

  
        33,870,136   
     

 

 

  

Iowa – 3.3%

      

Iowa Finance Authority, RB, Series A (AGC),

      

5.63%, 8/15/37

      12,650         14,331,058   

Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:

      

5.60%, 12/01/26

      4,530         5,194,778   

5.70%, 12/01/27

      4,530         5,203,883   

5.75%, 12/01/28

      2,400         2,747,184   

5.80%, 12/01/29

      3,060         3,501,833   

5.85%, 12/01/30

      3,170         3,622,835   
     

 

 

  
        34,601,571   
     

 

 

  

Kentucky – 0.9%

      

Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC),

      

5.25%, 2/01/28

      4,000         4,669,920   

Louisville & Jefferson County Metropolitan Sewer District Kentucky, RB, Series A (NPFGC),

      

5.25%, 5/15/14(c)

      5,000         5,265,100   
     

 

 

  
        9,935,020   
     

 

 

  

Louisiana – 0.7%

      

New Orleans Aviation Board Louisiana, RB, New Orleans Aviation, Series A, AMT (AGM),

      

5.25%, 1/01/32

      6,405         7,140,614   
     

 

 

  

Maine – 0.1%

      

Maine State Housing Authority, Refunding RB, Series B-1, AMT,

      

4.00%, 11/15/27

      920         964,123   
     

 

 

  

Massachusetts – 3.0%

      

Massachusetts HFA, RB:

      

S/F Housing, Series 128, AMT (AGM), 4.88%, 12/01/38(e)

      10,670         11,000,237   

Series B, 7.00%, 12/01/38

      3,150         3,623,855   

Massachusetts HFA, Refunding HRB, Series C, AMT,

      

5.35%, 12/01/42

      3,100         3,349,302   

Massachusetts HFA, Refunding RB, Rental Housing, Series A, AMT (AGM),

      

5.15%, 7/01/26

      4,595         4,609,428   

 

    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013   3

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Massachusetts (concluded)

      

Massachusetts Port Authority, Refunding RB, BOSFUEL Project, AMT (NPFGC),

      

5.00%, 7/01/38

    $ 8,275       $ 8,920,036   
     

 

 

  
        31,502,858   
     

 

 

  

Michigan – 7.0%

      

City of Detroit Michigan, RB, Water Supply System, Second Lien, Series B (AGM):

      

6.25%, 7/01/36

      1,075         1,248,699   

7.00%, 7/01/36

      500         602,475   

City of Detroit Michigan, Refunding RB:

      

Sewage Disposal System, Senior Lien (AGM), Series B, 7.50%, 7/01/33

      1,000         1,238,950   

Sewage Disposal System, Senior Lien (AGM), Series C-1, 7.00%, 7/01/27

      1,500         1,840,305   

Water Supply System, Series D, Senior Lien (AGM), 5.00%, 7/01/23

      5,000         5,267,500   

Water Supply System, Series D (NPFGC), 5.00%, 7/01/33

      5,000         5,081,650   

Lansing Board of Water & Light Utilities System, RB, Series A,

      

5.50%, 7/01/41

      3,185         3,768,110   

Michigan State Building Authority, Refunding RB, Facilities Program:

      

Series I, 6.25%, 10/15/38

      3,125         3,788,906   

Series I (AGC), 5.25%, 10/15/24

      1,750         2,091,425   

Series I (AGC), 5.25%, 10/15/25

      3,250         3,884,075   

Series I-A, 5.38%, 10/15/36

      2,075         2,398,783   

Series II-A, 5.38%, 10/15/41

      1,900         2,187,375   

Series II-A (AGM), 5.25%, 10/15/36

      8,040         9,259,266   

Michigan State HDA, RB, Series C,

      

5.50%, 12/01/28

      2,735         2,968,296   

Michigan Strategic Fund, Refunding RB, Detroit Edison Co. Project,, Series A (Syncora),

      

5.50%, 6/01/30

      2,500         2,520,550   

State of Michigan, RB, GAB (AGM):

      

5.25%, 9/15/22

      10,000         11,833,900   

5.25%, 9/15/26

      6,650         7,782,295   

Wayne County Airport Authority, Refunding RB, AMT (AGC),

      

5.38%, 12/01/32

      5,000         5,691,400   
     

 

 

  
        73,453,960   
     

 

 

  

Minnesota – 0.6%

      

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC),

      

6.50%, 11/15/38

      5,500         6,734,750   
     

 

 

  

Mississippi – 0.2%

      

Medical Center Educational Building Corp., RB, University of Mississippi Medical Center Facilities and Expansion and Renovation Project, Series A,

      

5.00%, 6/01/41

      2,000         2,275,080   
     

 

 

  

Nebraska – 0.3%

      

Central Plains Energy Project Nebraska, RB, Gas Project No. 3,

      

5.25%, 9/01/37

      2,825         3,158,180   
     

 

 

  

Nevada – 2.7%

      

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center,

      

6.00%, 4/01/34

      2,250         2,626,830   

County of Clark Nevada, ARB:

      

Las Vegas-McCarran International Airport, Series A (AGC), 5.25%, 7/01/39

      5,170         5,831,553   

Subordinate Lien, Series A-2 (NPFGC), 5.00%, 7/01/30

      19,250         20,036,940   
     

 

 

  
        28,495,323   
     

 

 

  

New Jersey – 4.6%

      

New Jersey EDA, RB, Cigarette Tax,

      

5.75%, 6/15/14(c)

      4,000         4,242,880   

New Jersey EDA, Refunding RB, School Facilities Construction, Series N-1:

      

(AMBAC), 5.50%, 9/01/24

      6,500         8,411,780   

(NPFGC), 5.50%, 9/01/28

      1,685         2,219,263   

New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:

      

5.50%, 12/01/25

      1,250         1,437,312   

5.50%, 12/01/26

      1,800         2,042,424   

5.75%, 12/01/28

      200         227,238   

5.88%, 12/01/33

      6,895         7,807,691   

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT,

      

4.35%, 11/01/33

      3,360         3,442,824   

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

      

CAB, Series A, 4.56%, 12/15/35(b)

      18,525         6,679,189   

CAB, Series C (AGC), 3.78%, 12/15/25(b)

      10,000         6,233,700   

Series A (NPFGC), 5.75%, 6/15/25

      4,000         5,216,480   
     

 

 

  
        47,960,781   
     

 

 

  

New York – 5.1%

      

City of New York, New York, GO, Series J,

      

5.25%, 5/15/14(c)

      10,000         10,516,600   

Hudson New York Yards Infrastructure Corp., RB,

      

5.75%, 2/15/47

      1,920         2,279,520   

 

4   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013    

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

New York (concluded)

      

New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-4,

      

5.50%, 1/15/34

    $ 7,250       $ 8,471,625   

New York State Dormitory Authority, ERB, Series B,

      

5.25%, 3/15/38

      3,250         3,777,833   

New York State Thruway Authority, Refunding RB, Series I,

      

5.00%, 1/01/37

      3,210         3,620,976   

Port Authority of New York & New Jersey, RB, Consolidated, 37th Series, AMT, (AGM),

      

5.13%, 7/15/30

      19,500         20,572,110   

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 172nd Series, AMT,

      

4.50%, 4/01/37

      3,970         4,293,952   
     

 

 

  
        53,532,616   
     

 

 

  

North Carolina – 0.2%

      

North Carolina Medical Care Commission, RB, Novant Health Obligation, Series A,

      

4.75%, 11/01/43

      2,075         2,227,845   
     

 

 

  

Ohio – 0.6%

      

County of Allen Ohio, Refunding RB, Catholic HealthCare Partners, Series A,

      

5.00%, 5/01/42

      2,030         2,253,483   

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A,

      

6.50%, 11/15/37

      3,000         3,778,230   
     

 

 

  
        6,031,713   
     

 

 

  

Pennsylvania – 2.9%

      

Pennsylvania Turnpike Commission, RB:

      

Series A (AMBAC), 5.50%, 12/01/31

      15,600         16,671,096   

Sub-Series A-1, 5.00%, 12/01/43

      3,885         4,223,927   

Sub-Series C (AGC), 6.25%, 6/01/38

      5,695         6,844,137   

Subordinate, Special Motor License Fund, 6.00%, 12/01/36

      2,575         3,154,298   
     

 

 

  
        30,893,458   
     

 

 

  

Puerto Rico – 3.1%

      

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A:

      

5.75%, 8/01/37

      2,000         2,146,040   

6.38%, 8/01/39

      10,195         11,492,008   

5.50%, 8/01/42

      5,155         5,424,349   

Puerto Rico Sales Tax Financing Corp., Refunding RB:

      

CAB, Series A (NPFGC), 5.64%, 8/01/41(b)

      15,000         3,118,050   

CAB, Series A (NPFGC), 5.66%, 8/01/42(b)

      3,190         624,378   

CAB, Series C, 5.50%, 8/01/38(b)

      9,400         2,388,258   

CAB, Series C, 5.54%, 8/01/39(b)

      24,000         5,716,800   

First Sub-Series C, 6.00%, 8/01/39

      1,180         1,299,133   
     

 

 

  
        32,209,016   
     

 

 

  

South Carolina – 0.4%

      

South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM),

      

6.50%, 8/01/39

      3,600         4,391,172   
     

 

 

  

Tennessee – 0.1%

      

Memphis Center City Revenue Finance Corp., RB, Pyramid and Pinch Distribution, Series B (AGM),

      

5.25%, 11/01/30

      485         566,364   
     

 

 

  

Texas – 13.8%

      

Bexar County Texas, Refunding RB, Combined Venue Project,

      

5.00%, 8/15/39

      1,500         1,682,145   

City of Houston Texas, Refunding RB, Series A (AGM),

      

5.00%, 11/15/36

      10,000         11,329,900   

City of Houston Texas Utility System, Refunding RB, Combined, First Lien, Series A (AGC):

      

6.00%, 11/15/35

      5,700         6,893,922   

5.38%, 11/15/38

      3,650         4,241,665   

Dallas Fort Worth International Airport, RB, Joint Improvement, AMT:

      

Series D, 5.00%, 11/01/38

      5,500         5,909,530   

Series H, 5.00%, 11/01/37

      8,865         9,545,034   

Dallas ISD, GO, School Building (PSF-GTD),

      

6.38%, 2/15/34

      10,000         12,317,300   

Grand Prairie ISD Texas, GO, CAB, Refunding,

      

5.36%, 8/15/28(b)

      10,000         4,452,100   

Harris County Hospital District, Refunding RB, Senior Lien, Series A (NPFGC),

      

5.25%, 2/15/37

      4,055         4,338,931   

Judson ISD Texas, GO, School Building (AGC),

      

5.00%, 2/01/37

      10,000         11,041,500   

Midland County Fresh Water Supply District No. 1, Refunding RB, City of Midland Project,

      

4.46%, 9/15/36(b)

      5,810         2,073,647   

North Texas Tollway Authority, Refunding RB, First Tier (NPFGC):

      

Series A, 6.00%, 1/01/28

      6,275         7,396,280   

System, Series A, 5.13%, 1/01/28

      20,000         22,335,800   

System, Series B, 5.75%, 1/01/40

      10,000         11,475,900   

 

    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013   5

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Texas (concluded)

      

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project:

      

4.00%, 9/15/42

    $ 4,400       $ 4,461,072   

CAB, 4.58%, 9/15/35(b)

      7,160         2,601,300   

CAB, 4.64%, 9/15/36(b)

      12,195         4,169,227   

CAB, 4.72%, 9/15/37(b)

      8,730         2,803,465   

Texas Department of Housing & Community Affairs, MRB, Series A, AMT (NPFGC),

      

5.45%, 9/01/23

      3,415         3,420,976   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:

      

5.00%, 12/15/28

      400         435,052   

5.00%, 12/15/29

      3,240         3,510,378   

Texas State Turnpike Authority, RB, CAB (AMBAC),

      

5.97%, 8/15/31(b)

      20,265         6,909,554   

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier, Series A,

      

4.00%, 8/15/38

      2,250         2,214,675   
     

 

 

  
        145,559,353   
     

 

 

  

Utah – 1.6%

      

Utah Transit Authority, Refunding RB, CAB, Sub-Series A(b):

      

(AGC), 3.16%, 6/15/20

      10,000         8,000,600   

(NPFGC), 4.09%, 6/15/24

      13,930         8,878,007   
     

 

 

  
        16,878,607   
     

 

 

  

Vermont – 0.1%

      

Vermont HFA, Refunding RB, Multiple Purpose, Series C, AMT (AGM),

      

5.50%, 11/01/38(e)

      1,510         1,607,365   
     

 

 

  

Washington – 3.1%

      

Port of Seattle, RB, Series B (NPFGC),

      

5.20%, 7/01/29

      20,565         20,634,098   

Washington Health Care Facilities Authority, RB, Series A:

      

5.00%, 10/01/39

      1,125         1,225,710   

5.25%, 10/01/39

      2,725         3,033,443   

5.00%, 8/15/44

      1,020         1,125,937   

Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D,

      

6.38%, 10/01/36

      5,400         6,525,792   
     

 

 

  
        32,544,980   
     

 

 

  

Wisconsin – 0.7%

      

Wisconsin Health & Educational Facilities Authority, RB:

      

Ascension Health Senior Credit Group, 5.00%, 11/15/33

      3,745         4,249,152   

SynergyHealth Inc., 6.00%, 8/01/13(c)

      2,000         2,028,280   

Wisconsin Health & Educational Facilities Authority, Refunding RB,

      

5.00%, 4/01/42

      1,300         1,450,865   
     

 

 

  
        7,728,297   
     

 

 

  

Total Municipal Bonds – 106.5%

         1,120,547,727   
     

 

 

  

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(f)

              

Arizona – 1.5%

      

Arizona School Facilities Board, COP (AGC),

      

5.13%, 9/01/21(g)

      10,000         11,652,800   

Salt River Project Agricultural Improvement & Power District, RB, Series A,

      

5.00%, 1/01/38

      3,500         3,952,445   
     

 

 

  
        15,605,245   
     

 

 

  

California – 10.6%

      

Alameda County Joint Powers Authority, Refunding LRB (AGM),

      

5.00%, 12/01/34

      6,990         7,799,582   

California State University, RB, Systemwide, Series A (AGM):

      

5.00%, 11/01/33(g)

      7,996         8,976,124   

5.00%, 11/01/37

      18,435         20,550,615   

City of Riverside California, RB, Issue D (AGM),

      

5.00%, 10/01/38

      20,000         22,070,800   

Foothill-De Anza Community College District, GO, Election of 1999, Series C (NPFGC),

      

5.00%, 8/01/36

      7,500         8,105,850   

Las Virgenes Unified School District California, GO, Series A (AGM),

      

5.00%, 8/01/31

      10,000         10,695,445   

Los Angeles Community College District California, GO, Refunding, Series A,

      

6.00%, 8/01/33

      5,248         6,496,358   

Orange County Sanitation District, COP, Series B (AGM),

      

5.00%, 2/01/37

      10,780         12,022,503   

San Diego Community College District California, GO, Election of 2002,

      

5.25%, 8/01/33

      1,047         1,253,470   

San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM),

      

5.00%, 5/01/33

      9,370         10,600,281   

University of California, RB, Series O,

      

5.75%, 5/15/34

      2,205         2,656,723   
     

 

 

  
        111,227,751   
     

 

 

  

Colorado – 0.3%

      

Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A,

      

5.50%, 7/01/34(g)

      2,469         2,881,241   
     

 

 

  

 

6   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013    

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(f)

    Par
(000)		      Value  

Connecticut – 0.5%

      

Connecticut State Health & Educational Facility Authority, RB, Yale University, Series T-1,

      

4.70%, 7/01/29

    $ 5,019       $ 5,648,820   
     

 

 

  

District of Columbia – 2.6%

      

District of Columbia, RB, Series A,

      

5.50%, 12/01/30(g)

      2,595         3,165,087   

District of Columbia Water & Sewer Authority, Refunding RB, Series A,

      

6.00%, 10/01/35(g)

      4,279         5,167,389   

Metropolitan Washington Airports Authority, RB, Series B, AMT (AMBAC),

      

5.00%, 10/01/32

      10,000         11,097,000   

Metropolitan Washington Airports Authority, Refunding ARB, Series B, AMT,

      

5.00%, 10/01/30

      6,880         7,922,389   
     

 

 

  
        27,351,865   
     

 

 

  

Florida – 6.4%

      

City of Tallahassee Florida, RB, Energy System (NPFGC),

      

5.00%, 10/01/32(g)

      3,300         3,692,205   

County of Miami-Dade Florida Transit System, RB, (Syncora),

      

5.00%, 7/01/31

      19,800         21,669,318   

County of Miami-Dade Florida, RB, Water and Sewer System AGM,

      

5.00%, 10/01/39

      11,701         13,181,109   

County of Miami-Dade Florida Transit System, Refunding RB,

      

5.00%, 7/01/42

      4,840         5,453,567   

Florida State Board of Education, GO, Series D,

      

5.00%, 6/01/37(g)

      3,299         3,744,559   

Highlands County Health Facilities Authority, RB, Adventist, Series C,

      

5.25%, 11/15/36(e)

      5,400         5,990,544   

Orange County School Board, COP, Series A (AGC),

      

5.50%, 8/01/34

      12,013         13,794,684   
     

 

 

  
        67,525,986   
     

 

 

  

Georgia – 1.1%

      

Metropolitan Atlanta Rapid Transit Authority, Refunding RB, Third Indenture, Series B (AGM),

      

5.00%, 7/01/37

      10,000         11,258,927   
     

 

 

  

Hawaii – 1.0%

      

Honolulu City & County Board of Water Supply, RB, Series A (NPFGC),

      

5.00%, 7/01/14(c)

      9,830         10,366,521   
     

 

 

  

Illinois – 3.4%

      

City of Chicago Illinois, GO, Refunding, Series A (AGC),

      

5.25%, 1/01/24(g)

      11,000         12,439,020   

City of Chicago Illinois, RB, Motor Fuel Tax, Series A (AGC),

      

5.00%, 1/01/38

      4,000         4,250,920   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A,

      

5.00%, 1/01/41

      2,190         2,444,128   

Illinois Finance Authority, RB, University of Chicago, Series B,

      

6.25%, 7/01/38

      10,000         12,303,700   

Metropolitan Pier & Exposition Authority, RB, Mccormick Place Expansion Project, Series A,

      

5.00%, 6/15/42

      720         803,944   

State of Illinois, RB, Build Illinois, Series B,

      

5.25%, 6/15/34(g)

      3,499         4,027,132   
     

 

 

  
        36,268,844   
     

 

 

  

Kentucky – 0.7%

      

Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC),

      

5.25%, 2/01/27

      5,985         7,003,956   
     

 

 

  

Louisiana – 1.1%

      

State of Louisiana Gas & Fuels, RB, Series A (AGM),

      

5.00%, 5/01/36

      10,000         11,028,100   
     

 

 

  

Michigan – 1.2%

      

Michigan Finance Authority, Refunding RB, Trinity Health,

      

5.00%, 12/01/39

      11,600         12,898,620   
     

 

 

  

Nevada – 0.6%

      

Clark County Water Reclamation District, GO, Series B:

      

5.50%, 7/01/29

      510         622,880   

5.75%, 7/01/34

      4,813         5,878,146   
     

 

 

  
        6,501,026   
     

 

 

  

New Jersey – 1.8%

      

Garden State Preservation Trust, RB, Election of 2005, Series A (AGM),

      

5.75%, 11/01/28

      10,000         13,497,900   

New Jersey Transportation Trust Fund Authority, RB,

      

5.25%, 6/15/36(g)

      4,960         5,666,998   
     

 

 

  
        19,164,898   
     

 

 

  

New York – 6.2%

      

New York City Municipal Water Finance Authority, Refunding RB:

      

5.00%, 6/15/47

      15,520         17,743,706   

Series DD, 5.00%, 6/15/37

      17,567         19,858,062   

New York State Urban Development, RB,

      

5.00%, 3/15/43

      14,280         16,480,405   

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 143rd Series, AMT,

      

5.00%, 10/01/30

      5,180         5,627,345   

Triborough Bridge & Tunnel Authority, RB, General, Series A-2,

      

5.25%, 11/15/34(g)

      4,500         5,259,060   
     

 

 

  
        64,968,578   
     

 

 

  

North Carolina – 0.9%

      

North Carolina HFA, RB, Series 31-A, AMT,

      

5.25%, 7/01/38

      9,456         9,949,943   
     

 

 

  

 

    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013   7

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(f)

    Par
(000)		      Value  

Ohio – 0.7%

      

County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM),

      

5.00%, 10/01/41

    $ 4,990       $ 5,323,182   

State of Ohio, RB, Cleveland Clinic Health, Series B,

      

5.50%, 1/01/34

      1,520         1,738,850   
     

 

 

  
        7,062,032   
     

 

 

  

Puerto Rico – 0.7%

      

Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C,

      

5.25%, 8/01/40

      6,540         7,085,632   
     

 

 

  

South Carolina – 0.4%

      

South Carolina State Housing Finance & Development Authority, Refunding RB, Series B-1,

      

5.55%, 7/01/39

      3,998         4,307,612   
     

 

 

  

South Dakota – 0.0%

      

South Dakota HDA, Refunding RB, Homeownership Mortgage, Series K,

      

5.05%, 5/01/36

      483         493,402   
     

 

 

  

Texas – 4.1%

      

Friendswood ISD Texas, GO, Schoolhouse (PSF-GTD),

      

5.00%, 2/15/37

      12,955         14,594,826   

Houston ISD, GO, Schoolhouse (PSF-GTD),

      

5.00%, 2/15/33

      10,000         11,182,200   

North East ISD Texas, GO, School Building, Series A,

      

5.00%, 8/01/37(g)

      3,500         3,986,010   

Tarrant County Cultural Educational Facilities Finance Corp., RB,

      

5.00%, 11/15/38

      1,799         2,017,346   

Texas State University Systems, Refunding RB,

      

5.25%, 3/15/26

      10,000         11,715,400   
     

 

 

  
        43,495,782   
     

 

 

  

Virginia – 0.4%

      

University of Virginia, Refunding RB, General,

      

5.00%, 6/01/40

      3,944         4,511,205   
     

 

 

  

Washington – 3.5%

      

Central Puget Sound Regional Transit Authority, RB, Series A (AGM),

      

5.00%, 11/01/34

      16,770         19,222,025   

County of King Washington, RB (AGM),

      

5.00%, 1/01/37

      15,785         17,805,641   
     

 

 

  
        37,027,666   
     

 

 

  

Wisconsin – 2.5%

      

State of Wisconsin, Refunding RB, Series A,

      

6.00%, 5/01/36

      14,780         17,857,492   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc.,

      

5.25%, 4/01/39(g)

      7,459         8,277,535   
     

 

 

  
        26,135,027   
     

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 52.2%

         549,768,679   
     

 

 

  

Total Long-Term Investments
(Cost – $1,497,583,160) – 158.7%

         1,670,316,406   
     

 

 

  

Short-Term Securities

    Shares         

FFI Institutional Tax-Exempt Fund, 0.03%(h)(i)

      2,308,982         2,308,982   
     

 

 

  

Total Short-Term Securities
(Cost – $2,308,982) – 0.2%

         2,308,982   
     

 

 

  

Total Investments (Cost–$1,499,892,142*) – 158.9%

         1,672,625,388   

Other Assets Less Liabilities – 1.0%

         10,745,705   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (26.0)%

         (274,108,877 ) 

VRDP Shares, at Liquidation Value – (33.9)%

         (356,400,000 ) 
     

 

 

  

Net Assets Applicable to Common Shares – 100.0%

       $ 1,052,862,216   
     

 

 

  

 

* As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 1,228,298,383   
  

 

 

  

Gross unrealized appreciation

    $ 173,170,293   

Gross unrealized depreciation

      (2,816,085 ) 
  

 

 

  

Net unrealized appreciation

    $ 170,354,208   
  

 

 

  

Notes to Schedule of Investments

 

(a) Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

8   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013    

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
  

 

(c) US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

(d) When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty

    Value      Unrealized
Appreciation		  

JPMorgan Chase & Co.

    $ 6,604,281       $ 69,146   

 

(e) Variable rate security. Rate shown is as of report date.

 

(f) Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

(g) All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from 1/01/16 to 12/01/29, is $37,173,106.

 

(h) Investments in issuers considered to be an affiliate of the Fund during the period ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 act, were as follows:

 

Affiliate

    Shares Held at
July  31,
2012		      Net Activity     Shares Held at
April  30,
2013		      Income  

FFI Institutional Tax-Exempt Fund

      21,624,366         (19,315,384 )      2,308,982       $ 1,662   

 

(i) Represents the current yield as of report date.

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

AGC   Assured Guaranty Corp.
AGM   Assured Guaranty Municipal Corp.
AMBAC   American Municipal Bond Assurance Corp.
AMT   Alternative Minimum Tax (subject to)
ARB   Airport Revenue Bonds
BHAC   Berkshire Hathaway Assurance Corp.
CAB   Capital Appreciation Bonds
COP   Certificates of Participation
EDA   Economic Development Authority
ERB   Education Revenue Bonds
GAB   Grant Anticipation Bonds
GARB   General Airport Revenue Bonds
Ginnie Mae   Government National Mortgage Association
GO   General Obligation Bonds
HDA   Housing Development Authority
HFA   Housing Finance Agency
HRB   Housing Revenue Bonds
IDA   Industrial Development Authority
ISD   Independent School District
LRB   Lease Revenue Bonds
M/F   Multi-Family
MRB   Mortgage Revenue Bonds
NPFGC   National Public Finance Guarantee Corp.
PSF-GTD   Permanent School Fund Guaranteed
RB   Revenue Bonds
S/F   Single-Family
Syncora   Syncora Guarantee
 

 

    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013   9

Schedule of Investments (concluded)    BlackRock MuniYield Quality Fund III, Inc. (MYI)
  

 

• Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts Sold

   

Issue

   

Exchange

   

Expiration

    Notional Value      Unrealized
   Depreciation  		  

(435)

    10-Year US Treasury Note    Chicago Board of Trade    June 2013    $   58,011,328       $ (631,273 ) 

 

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

  •  

Level 2 – other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments1

      –       $ 1,670,316,406         –       $ 1,670,316,406   

Short-Term Securities

    $ 2,308,982         –         –         2,308,982   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 2,308,982       $ 1,670,316,406         –       $ 1,672,625,388   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 

See above Schedule of Investments for values in each state or political subdivision.

 

      Level 1     Level 2      Level 3      Total  

Derivative Financial Instruments2

           

Liabilities:

           

Interest rate contracts

    $ (631,273 )      –         –       $ (631,273 ) 

 

2 

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

           

Cash pledged for financial futures contracts

    $ 565,000         –        –       $ 565,000   

Liabilities:

           

TOB trust certificates

      –       $ (273,972,797 )      –         (273,972,797 ) 

VMTP shares

      –         (356,400,000 )      –         (356,400,000 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 565,000       $ (630,372,797 )      –       $ (629,807,797 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

There were no transfers between levels during the period ended April 30, 2013.

 

10   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    APRIL 30, 2013    

Item 2    –    Controls and Procedures
2(a)    –    The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b)    –    There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3    –    Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock MuniYield Quality Fund III, Inc.

    
By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of BlackRock MuniYield Quality Fund III, Inc.

Date: June 24, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of BlackRock MuniYield Quality Fund III, Inc.
Date: June 24, 2013    
By:  

/s/ Neal J. Andrews

    
  Neal J. Andrews    
  Chief Financial Officer (principal financial officer) of BlackRock MuniYield Quality Fund III, Inc.

Date: June 24, 2013