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: 07/31/2014

Date of reporting period: 10/31/2013

Item 1 – Schedule of Investments

Schedule of Investments October 31, 2013 (Unaudited)

   

BlackRock MuniYield Quality Fund III, Inc. (MYI)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 0.6%

     

City of Birmingham Alabama, GO, CAB, Series A, 5.05%, 3/01/43 (a)

    $ 1,940      $ 1,631,501   

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39

      3,605        4,046,577   
    

 

 

  
               5,678,078   

Alaska — 1.9%

     

Alaska Housing Finance Corp., RB, General Housing, Series B (NPFGC), 5.25%, 12/01/30

      2,000        2,131,180   

Alaska Housing Finance Corp., Refunding RB, Series A, 4.13%, 12/01/37

      1,045        982,572   

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41

      2,690        2,830,794   

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC), 6.00%, 9/01/28

      10,150        11,821,096   
    

 

 

  
               17,765,642   

Arizona — 0.5%

     

City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F, Series A-2, AMT (Fannie Mae), 5.80%, 7/01/40

      365        376,151   

State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/27

      3,725        3,966,864   
    

 

 

  
               4,343,015   

California — 14.7%

     

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC), 5.40%, 10/01/24

      10,000        10,714,000   

California Health Facilities Financing Authority, RB:

     

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

      1,550        1,723,151   

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

      3,885        3,749,413   

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

      3,200        3,641,280   

California Health Facilities Financing Authority, Refunding RB, St. Joseph’s Health System, Series A, 5.00%, 7/01/37

      2,965        2,998,801   

California HFA, RB, S/F, Home Mortgage, Series K, AMT, 5.50%, 2/01/42

      2,250        2,312,393   

California State Public Works Board, LRB, Various Judicial Council Projects, Series A, 5.00%, 3/01/38

      1,940        1,957,150   

California State University, RB, Systemwide, Series A, 5.50%, 11/01/39

      1,525        1,663,440   

California Statewide Communities Development Authority, RB:

     

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

      4,030        4,060,104   

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

      4,000        4,055,640   

City of Redding California, COP, Refunding, Series A (AGM), 5.00%, 6/01/30

      1,900        2,010,105   

City of San Jose California, Refunding ARB, AMT:

     

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

      11,965        12,826,121   

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

      2,300        2,437,931   

Coast Community College District, GO, Election of 2002, Series C (AGM), 5.47%, 8/01/33 (b)

      8,100        2,790,774   

County of Sacramento California, ARB, Senior Series A, 5.00%, 7/01/41

      12,500        12,630,500   

County of San Joaquin Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36

      1,830        2,101,316   

Dublin Unified School District California, GO, CAB, Election of 2004, Series D, 5.94%, 8/01/34 (b)

      5,000        1,485,500   

Fairfield-Suisun Unified School District California, GO, Election of 2002 (NPFGC), 5.50%, 8/01/14 (c)

      5,800        6,031,710   

Grossmont Union High School District, GO, CAB, Election of 2004, 5.27%, 8/01/31 (b)

      5,110        2,029,692   

Long Beach Unified School District, GO, Election of 2008, Series B, 5.58%, 8/01/34 (b)

      5,000        1,595,900   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 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 (continued)

     

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32

    $ 1,200      $ 1,265,988   

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 5.56%, 8/01/43 (a)

      3,975        1,892,537   

Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 5.83%, 8/01/38 (b)

      7,620        1,837,639   

Oceanside Unified School District, GO, Series A (AGC), 5.25%, 8/01/33

      2,500        2,628,300   

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

     

5.68%, 8/01/35

      7,820        2,312,921   

5.76%, 8/01/36

      10,000        2,747,500   

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

     

5.54%, 8/01/37

      8,000        2,184,960   

5.59%, 8/01/38

      12,940        3,306,170   

San Bernardino Community College District, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31

      2,165        2,301,698   

San Diego Unified School District California, GO, Refunding, CAB, Series R-1, 5.08%, 7/01/31 (b)

      3,485        1,436,517   

San Francisco Bay Area Rapid Transit District, RB, Sales Tax Revenue (AGM), 5.00%, 7/01/14 (c)

      10,000        10,322,300   

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

     

5.00%, 8/01/34

      1,800        1,896,732   

5.00%, 8/01/38

      1,600        1,662,352   

State of California, GO, Refunding, Various Purpose:

     

5.00%, 2/01/38

      4,000        4,111,280   

5.00%, 9/01/41

      2,700        2,759,508   

5.00%, 10/01/41

      2,555        2,611,874   

State of California, GO:

     

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

      10        10,157   

Various Purpose, 5.50%, 3/01/40

      1,020        1,105,384   

Various Purposes, 5.00%, 4/01/42

      2,000        2,045,420   

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 5.76%, 8/01/36 (b)

      6,545        1,798,631   

West Valley-Mission Community College District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/30

      3,600        3,831,084   
    

 

 

  
               136,883,873   

Florida — 12.0%

     

City of Jacksonville Florida Transportation, Refunding RB, Series A, 5.00%, 10/01/30

      770        818,341   

County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/33

      13,100        13,912,986   

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/34

      2,250        2,432,385   

County of Collier Florida School Board, COP (AGM), 5.00%, 2/15/23

      5,000        5,414,600   

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

     

5.63%, 10/01/26

      2,600        2,837,016   

5.38%, 10/01/32

      3,440        3,527,686   

County of Miami-Dade Florida, GO, Building Better Communities Program:

     

Series B, 6.38%, 7/01/28

      6,000        6,931,980   

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

      3,700        4,096,529   

County of Miami-Dade Florida, RB:

     

Seaport, Series A, 6.00%, 10/01/38

      5,695        6,233,690   

Seaport, Series B, AMT, 6.00%, 10/01/30

      1,820        1,947,618   

Seaport, Series B, AMT, 6.25%, 10/01/38

      1,165        1,244,814   

Seaport, Series B, AMT, 6.00%, 10/01/42

      1,865        1,947,041   

Transit System Sales Surtax (AGM), 5.00%, 7/01/35

      2,800        2,878,540   

County of Miami-Dade Florida, Refunding RB:

     

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

      2,940        3,005,680   

Water & Sewer System, Series C, 6.00%, 10/01/23

      20,095        23,872,860   

 

                
2    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund III, Inc. (MYI)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds    Par  
(000)		     Value  

Florida (concluded)

     

County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A (AGM), AMT, 5.50%, 10/01/41

    $   19,020      $ 20,145,223   

County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/31

      3,100        3,231,502   

County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 7/01/39

      5,135        5,258,240   

County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37

      1,750        1,973,703   
    

 

 

  
               111,710,434   

Georgia — 1.8%

     

City of Atlanta Georgia Department of Aviation, Refunding GARB, Series B (AGM), 5.25%, 1/01/33

      10,000        10,222,700   

County of Burke Georgia Development Authority, Refunding RB, Oglethorpe Power-Vogtle Project, Series C, 5.70%, 1/01/43

      6,450        6,752,118   
    

 

 

  
               16,974,818   

Illinois — 19.8%

     

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

     

Series A, 5.75%, 1/01/39

      9,000        9,374,220   

Series B-2, AMT (NPFGC), 5.25%, 1/01/27

      10,000        10,045,100   

Series B-2, AMT (NPFGC), 6.00%, 1/01/27

      26,230        26,406,528   

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

     

6.28%, 1/01/29

      4,000        1,565,920   

6.59%, 1/01/33

      7,950        2,294,370   

City of Chicago Illinois, GO, Refunding, Series A (AGC), 5.25%, 1/01/24

      11,000        11,305,360   

City of Chicago Illinois, Refunding GARB, O’Hare International Airport, Third Lien, Series C-2, AMT (AGM), 5.25%, 1/01/30

      16,400        16,411,316   

City of Chicago Illinois, Refunding RB, Waterworks, Second Lien, Series A (AMBAC), 5.00%, 11/01/36

      3,500        3,501,925   

City of Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39

      6,470        6,381,490   

City of Chicago Illinois Park District, GO, Harbor Facilities, Series C:

     

5.25%, 1/01/37

      4,000        4,044,920   

5.25%, 1/01/40

      1,505        1,528,222   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/36

      1,620        1,661,747   

Cook County Community College District No. 508, GO, 5.13%, 12/01/38

      3,250        3,271,483   

County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

      775        797,374   

County of Cook Illinois Forest Preserve District, GO, Series C, 5.00%, 12/15/37

      890        918,258   

Illinois Finance Authority, RB, Carle Foundation, Series A, 5.75%, 8/15/34

      8,700        9,277,680   

Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39

      5,250        5,882,100   

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

     

5.00%, 2/01/35

      17,935        17,992,213   

5.25%, 2/01/35

      15,000        15,486,150   

Illinois State Toll Highway Authority, RB, Series B:

     

5.50%, 1/01/33

      4,000        4,326,800   

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

      2,000        2,173,140   

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

     

5.11%, 12/15/26

      9,600        4,953,504   

5.88%, 6/15/32

      14,000        4,758,180   

5.94%, 12/15/34

      41,880        12,163,208   

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 6.05%, 6/15/44 (b)

      9,430        1,520,022   

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28

      1,700        1,822,740   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 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  

Illinois (concluded)

     

Regional Transportation Authority, RB, Series C (NPFGC), 7.75%, 6/01/20

    $ 1,000      $ 1,209,470   

State of Illinois, GO, Various Purposes:

     

5.50%, 7/01/33

      2,235        2,281,868   

5.50%, 7/01/38

      1,200        1,204,368   
    

 

 

  
               184,559,676   

Indiana — 3.4%

     

City of Indianapolis Indiana, Refunding RB, Series B (AGC), 5.25%, 8/15/27

      5,000        5,276,600   

Indiana Finance Authority, RB:

     

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/40

      2,425        2,208,981   

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

      1,400        1,249,388   

Wastewater Utility, CWA Authority Project, First Lien, Series A, 5.25%, 10/01/38

      2,900        3,002,370   

Indiana Municipal Power Agency, RB:

     

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

      3,850        3,897,355   

Series B, 5.75%, 1/01/34

      1,050        1,059,723   

Series B, 6.00%, 1/01/39

      5,000        5,553,400   

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

     

5.75%, 1/01/38

      2,900        3,090,008   

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

      1,350        1,435,766   

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

      4,250        4,481,752   
    

 

 

  
               31,255,343   

Iowa — 3.2%

     

Iowa Finance Authority, RB, Series A (AGC), 5.63%, 8/15/37

      12,650        13,485,659   

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

     

5.60%, 12/01/26

      4,100        4,225,993   

5.70%, 12/01/27

      4,100        4,201,065   

5.75%, 12/01/28

      2,170        2,226,246   

5.80%, 12/01/29

      2,770        2,829,084   

5.85%, 12/01/30

      2,865        2,923,962   
    

 

 

  
               29,892,009   

Kentucky — 1.1%

     

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40 (d)

      1,000        1,009,650   

Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/28

      4,000        4,383,560   

Louisville & Jefferson County Metropolitan Sewer District Kentucky, RB, Series A (NPFGC), 5.25%, 5/15/14 (c)

      5,000        5,187,050   
    

 

 

  
               10,580,260   

Louisiana — 1.5%

     

City of New Orleans Louisiana Aviation Board, RB, New Orleans Aviation, Series A, AMT (AGM), 5.25%, 1/01/32

      6,405        6,461,684   

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, East Baton Rouge Sewerage Commission Projects, Sub-Lien, Series A:

     

5.00%, 2/01/43

      3,885        3,927,735   

4.00%, 2/01/48

      3,885        3,286,710   
    

 

 

  
               13,676,129   

Massachusetts — 1.6%

     

Massachusetts HFA, RB, Series B, 7.00%, 12/01/38

      3,150        3,408,993   

Massachusetts HFA, Refunding, HRB, Series C, AMT, 5.35%, 12/01/42

      3,100        3,098,326   

Massachusetts Port Authority, Refunding RB, BOSFUEL Project, AMT (NPFGC), 5.00%, 7/01/38

      5,175        5,088,215   

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43

      3,495        3,676,321   
    

 

 

  
               15,271,855   

Michigan — 9.1%

     

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

     

6.25%, 7/01/36

      1,075        1,090,007   

7.00%, 7/01/36

      500        524,175   

 

                
4    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund III, Inc. (MYI)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

Michigan (concluded)

  

City of Detroit Michigan, Refunding RB:

     

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

    $ 1,000      $ 1,073,520   

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

      1,500        1,584,015   

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

      5,000        4,539,400   

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

      5,000        4,876,250   

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

      3,185        3,414,989   

Michigan Finance Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/39

      16,100        16,029,482   

Michigan State Building Authority, Refunding RB, Facilities Program:

     

Series I, 6.25%, 10/15/38

      3,125        3,540,250   

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

      1,750        1,959,405   

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

      3,250        3,558,685   

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

      2,075        2,162,129   

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

      1,900        1,938,133   

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

      8,040        8,303,551   

Michigan State HDA, RB, Series C, AMT, 5.50%, 12/01/28

      2,530        2,607,241   

Michigan Strategic Fund, Refunding RB, Detroit Edison Co. Project, Series A, AMT, 5.50%, 6/01/30

      2,500        2,500,300   

State of Michigan, RB, GAB (AGM):

     

5.25%, 9/15/22

      10,000        11,180,500   

5.25%, 9/15/26

      6,650        7,273,238   

Wayne County Airport Authority, Refunding RB, AMT (AGC), 5.38%, 12/01/32

      5,000        5,298,450   

Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39

      1,080        1,091,016   
    

 

 

  
               84,544,736   

Minnesota — 0.7%

  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

      5,500        6,304,265   

Nebraska — 0.3%

     

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

      2,825        2,905,258   

Nevada — 2.8%

     

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34

      2,250        2,460,240   

County of Clark Nevada, ARB:

     

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

      5,170        5,345,522   

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

      17,750        18,061,867   
    

 

 

  
               25,867,629   

New Jersey — 5.3%

     

New Jersey EDA, RB, Cigarette Tax, 5.75%, 6/15/14 (c)

      4,000        4,139,000   

New Jersey EDA, Refunding RB, School Facilities Construction:

     

Series N-1 (AMBAC), 5.50%, 9/01/24

      6,500        7,769,190   

Series N-1 (NPFGC), 5.50%, 9/01/28

      1,685        1,951,247   

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

     

5.50%, 12/01/25

      1,250        1,313,825   

5.50%, 12/01/26

      1,800        1,880,856   

5.75%, 12/01/28

      200        212,460   

5.88%, 12/01/33

      6,895        7,205,551   

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

      3,360        3,058,138   

New Jersey Transportation Trust Fund Authority, RB:

     

CAB, Transportation System, Series A, 5.65%, 12/15/35 (b)

      18,525        5,400,778   

CAB, Transportation System, Series C (AGC)(AMBAC), 4.50%, 12/15/25 (b)

      10,000        5,832,800   

Transportation Program, Series AA, 5.25%, 6/15/33

      4,150        4,417,384   

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

      4,000        4,825,400   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 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  

New Jersey (concluded)

  

Rutgers—The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

    $ 1,200      $ 1,261,128   
    

 

 

  
               49,267,757   

New York — 5.3%

     

City of New York New York, GO, Series J, 5.25%, 5/15/14 (c)

      10,000        10,274,800   

Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

      1,920        2,033,856   

New York City Transitional Finance Authority, RB:

     

Fiscal 2009, Series S-4, 5.50%, 1/15/34

      7,250        8,053,662   

Future Tax Secured, Series C, 5.50%, 11/01/35

      1,820        2,001,563   

New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38

      3,250        3,442,888   

Port Authority of New York & New Jersey, RB, Consolidated, 37th Series, AMT (AGM), 5.13%, 7/15/30

      19,500        19,799,910   

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 172nd Series, AMT, 4.50%, 4/01/37

      3,970        3,841,412   
    

 

 

  
               49,448,091   

North Carolina — 0.2%

     

North Carolina Medical Care Commission, RB, Health Care Facilities, Novant Health Obligated Group, Series A, 4.75%, 11/01/43

      2,075        1,994,822   

Ohio — 2.2%

     

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37

      3,000        3,398,760   

County of Montgomery Ohio, RB, Catholic Health Initiatives, Series D-2, 5.45%, 10/01/38 (d)

      11,135        11,341,554   

Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37

      970        989,313   

Ohio State Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:

     

5.25%, 2/15/32

      1,950        2,085,876   

5.25%, 2/15/33

      2,730        2,909,470   
    

 

 

  
               20,724,973   

Pennsylvania — 3.4%

     

Commonwealth Financing Authority, RB, Series B, 5.00%, 6/01/42

      4,075        4,111,634   

Pennsylvania Turnpike Commission, RB:

     

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

      15,600        16,152,864   

Series C, 5.50%, 12/01/33

      1,565        1,706,586   

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

      5,695        6,383,241   

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

      2,575        2,896,592   
    

 

 

  
               31,250,917   

South Carolina — 1.1%

     

South Carolina Jobs-EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 8/01/39

      3,600        3,989,412   

South Carolina State Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38

      5,870        6,014,637   
    

 

 

  
               10,004,049   

Tennessee — 0.1%

     

Memphis Center City Revenue Finance Corp., RB, Pyramid & Pinch District, Series B (AGM), 5.25%, 11/01/30

      485        520,662   

Texas — 14.1%

     

City of Houston Texas, Refunding RB, Series A (AGM), 5.00%, 11/15/36

      10,000        10,520,500   

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

     

6.00%, 11/15/35

      5,700        6,479,817   

5.38%, 11/15/38

      3,650        3,895,207   

City of San Antonio Texas Public Service Board, RB, Junior Lien, 5.00%, 2/01/38

      1,450        1,518,803   

 

                
6    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund III, Inc. (MYI)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

     Value  

Texas (continued)

  

County of Harris Texas Hospital District, Refunding RB, Senior Lien, Series A (NPFGC), 5.25%, 2/15/37

    $ 4,055      $ 4,154,185   

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Childrens Medical Center, 5.25%, 12/01/39

      2,095        2,164,491   

Dallas ISD, GO, School Building (PSF-GTD), 6.38%, 2/15/34

      10,000        11,629,800   

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38

      5,500        5,272,850   

Dallas-Fort Worth International Airport, Refunding RB, Series F, 5.25%, 11/01/33

      2,745        2,884,501   

Grand Prairie ISD, GO, Refunding, 5.75%, 8/15/28 (b)

      10,000        4,327,300   

Judson ISD Texas, GO, School Building (AGC), 5.00%, 2/01/37

      10,000        10,207,000   

Midland County Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 5.01%, 9/15/36 (b)

      5,810        1,871,633   

North Texas Tollway Authority, Refunding RB:

     

First Tier System, Series B (NPFGC), 5.75%, 1/01/40

      10,000        10,810,900   

First Tier, Series A, 6.00%, 1/01/28

      6,275        7,092,507   

System, Series A (NPFGC), 5.13%, 1/01/28

      20,000        21,082,800   

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

     

4.00%, 9/15/42

      4,400        3,779,248   

CAB, 4.93%, 9/15/35 (b)

      7,160        2,465,475   

CAB, 4.99%, 9/15/36 (b)

      12,195        3,952,278   

CAB, 5.04%, 9/15/37 (b)

      8,730        2,660,118   

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

     

5.00%, 12/15/28

      400        396,212   

5.00%, 12/15/31

      1,665        1,620,411   

5.00%, 12/15/32

      2,165        2,094,962   

Texas State Turnpike Authority, RB, CAB (AMBAC), 6.05%, 8/15/31 (b)

      20,265        7,019,188   

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier, Series A, 5.00%, 8/15/41

      3,750        3,721,875   
    

 

 

  
               131,622,061   

Utah — 1.8%

     

Utah Transit Authority, Refunding RB, CAB (b):

     

Sub-Series A (AGC), 3.60%, 6/15/20

      10,000        7,894,700   

Sub-Series A (NPFGC), 4.46%, 6/15/24

      13,930        8,720,737   
    

 

 

  
               16,615,437   

Vermont — 0.1%

     

Vermont HFA, Refunding RB, Multiple Purpose, Series C, AMT (AGM), 5.50%, 11/01/38 (e)

      1,410        1,435,084   

Washington — 3.3%

     

Port of Seattle, Refunding RB, Series B (NPFGC), 5.20%, 7/01/29

      20,565        20,580,013   

Washington Health Care Facilities Authority, RB:

     

MultiCare Health System, Remarketing, Series B, 5.00%, 8/15/44

      1,000        999,920   

Providence Health & Services, Series A, 5.25%, 10/01/39

      2,725        2,801,000   

Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36

      5,400        6,065,010   
    

 

 

  
               30,445,943   

Wisconsin — 0.4%

     

Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Care Group, 5.00%, 11/15/33

      3,745        3,913,450   
Total Municipal Bonds — 112.3%              1,045,456,266   
    
                  
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (f)		               

Arizona — 1.6%

     

Arizona School Facilities Board, COP (AGC), 5.13%, 9/01/21 (g)

      10,000        11,121,800   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 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  

Arizona (concluded)

     

Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38

    $ 3,500      $ 3,666,040   
    

 

 

  
               14,787,840   

California — 11.6%

     

California State University, RB, Systemwide, Series A (AGM), 5.00%, 11/01/33 (g)

      7,996        8,294,724   

California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/37

      21,981        22,603,587   

City of Riverside California, RB, Issue D (AGM), 5.00%, 10/01/38

      20,000        20,703,400   

County of Alameda California Joint Powers Authority, Refunding LRB (AGM), 5.00%, 12/01/34

      6,990        7,211,443   

County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37

      10,780        11,359,317   

County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33

      9,370        9,961,341   

Foothill-De Anza Community College District, GO, Refunding, Election of 1999, Series C (NPFGC), 5.00%, 8/01/36

      7,500        7,822,500   

Las Virgenes Unified School District California, GO, Series A (AGM), 5.00%, 8/01/31

      10,000        10,593,794   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33

      5,248        6,043,517   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

      1,047        1,167,580   

University of California, RB, Series O, 5.75%, 5/15/34

      2,205        2,489,746   
    

 

 

  
               108,250,949   

Colorado — 0.3%

     

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (g)

      2,469        2,704,488   

Connecticut — 0.6%

     

Connecticut State Health & Educational Facility Authority, RB, Yale University, Series T-1, 4.70%, 7/01/29

      5,019        5,236,101   

District of Columbia — 2.7%

     

District of Columbia, RB, Series A, 5.50%, 12/01/30 (g)

      2,595        2,909,272   

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (g)

      4,279        4,787,497   

Metropolitan Washington Airports Authority, RB, Series B, AMT, 5.00%, 10/01/32

      10,000        10,159,400   

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

      6,880        7,181,481   
    

 

 

  
               25,037,650   

Florida — 6.8%

     

City of Tallahassee Florida, RB, Energy System (NPFGC), 5.00%, 10/01/32 (g)

      3,300        3,431,472   

County of Highlands Florida Health Facilities Authority, RB, Adventist, Series C, 5.25%, 11/15/16 (e)

      5,400        5,475,438   

County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42

      4,840        4,914,536   

County of Miami-Dade Florida Transit System, RB (Syncora), 5.00%, 7/01/31

      19,800        20,749,608   

County of Miami-Dade Florida Water & Sewer System, RB (AGM), 5.00%, 10/01/39

      11,702        12,017,611   

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/34

      12,013        12,872,244   

State of Florida Board of Education, GO, Refunding, Series D, 5.00%, 6/01/37 (g)

      3,299        3,477,392   
    

 

 

  
               62,938,301   

Georgia — 1.1%

     

Metropolitan Atlanta Rapid Transit Authority, Refunding RB, Third Indenture, Series B (AGM), 5.00%, 7/01/37

      10,000        10,396,096   

 

 

                
8    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 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  

Hawaii — 1.1%

     

Honolulu City & County Board of Water Supply, RB, Series A (NPFGC), 5.00%, 7/01/14 (c)

    $ 9,830      $   10,146,231   

Illinois — 2.9%

     

City of Chicago Illinois, RB, Motor Fuel Tax Project, Series A (AGC), 5.00%, 1/01/38

      4,000        3,842,520   

City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.00%, 1/01/41

      2,190        2,236,976   

Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38

      10,000        11,035,900   

Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38

      5,836        5,848,094   

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42

      720        722,462   

State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34 (g)

      3,499        3,620,799   
    

 

 

  
               27,306,751   

Kentucky — 0.7%

     

Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27

      5,985        6,639,216   

Louisiana — 1.1%

     

State of Louisiana Gas & Fuels, RB, Series A (AGM), 5.00%, 5/01/36

      10,000        10,470,800   

Nevada — 0.6%

     

County of Clark Nevada Water Reclamation District, GO, Series B:

     

Limited Tax, 5.75%, 7/01/34

      4,813        5,470,219   

5.50%, 7/01/29

      510        584,533   
    

 

 

  
               6,054,752   

New Jersey — 1.9%

     

Garden State Preservation Trust, RB, Election of 2005, Series A (AGM), 5.75%, 11/01/28

      10,000        12,185,600   

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (g)

      4,961        5,214,997   
    

 

 

  
               17,400,597   

New York — 6.4%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System Second General Resolution:

     

Series CC, 5.00%, 6/15/47

      15,520        16,116,123   

Series DD, 5.00%, 6/15/37

      17,567        18,354,070   

New York State Urban Development Corp., RB, Personal Income Tax, General Purpose, Series A-1, 5.00%, 3/15/43

      14,280        14,864,766   

Port Authority of New York & New Jersey, Refunding RB, Construction, 143rd Series, AMT, 5.00%, 10/01/30

      5,180        5,317,270   

Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34 (g)

      4,500        4,878,810   
    

 

 

  
               59,531,039   

North Carolina — 0.9%

     

North Carolina HFA, RB, Series 31-A, AMT, 5.25%, 7/01/38

      8,534        8,623,898   

Ohio — 0.7%

     

County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41

      4,990        5,011,856   

State of Ohio, RB, Cleveland Clinic Health Obligated Group, Series B, 5.50%, 1/01/34

      1,520        1,617,356   
    

 

 

  
               6,629,212   

South Carolina — 0.4%

     

South Carolina State Housing Finance & Development Authority, Refunding RB, Series B-1, 5.55%, 7/01/39

      3,686        3,790,777   

Texas — 5.3%

     

County of Tarrant Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38

      1,799        1,807,970   

Dallas Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/37 (g)

      8,868        8,508,999   

Friendswood ISD Texas, GO, Schoolhouse (PSF-GTD), 5.00%, 2/15/37

      12,955        13,633,065   

Houston ISD, GO, Schoolhouse (PSF-GTD), 5.00%, 2/15/33

      10,000        10,666,200   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 2013    9

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  

Texas (concluded)

     

North East Texas ISD, GO, School Building, Series A (PSF-GTD), 5.00%, 8/01/37 (g)

    $ 3,500      $ 3,753,505   

Texas State University Systems, Refunding RB, 5.25%, 3/15/26

      10,000        11,341,700   
    

 

 

  
               49,711,439   

Virginia — 0.5%

     

University of Virginia, Refunding RB, General, 5.00%, 6/01/40

      3,944        4,228,743   

Washington — 3.7%

     

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/34

      16,770        18,003,937   

County of King Washington, RB (AGM), 5.00%, 1/01/37

      15,785        16,631,970   
    

 

 

  
               34,635,907   

Wisconsin — 2.9%

     

State of Wisconsin, Refunding RB, Series A, 6.00%, 5/01/36

      14,780        16,515,024   

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

     

Series A, 5.00%, 4/01/42

      2,490        2,471,226   

Series C, 5.25%, 4/01/39 (g)

      7,459        7,656,171   
    

 

 

  
               26,642,421   
Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts — 53.8%		              501,163,208   
Total Long-Term Investments
(Cost — $1,489,909,813) — 166.1%		              1,546,619,474   
    
                  
Short-Term Securities    Shares         

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

      7,589,679        7,589,679   
Total Short-Term Securities
(Cost — $7,589,679) — 0.8%		              7,589,679   
Total Investments (Cost — $1,497,499,492*) — 166.9%        1,554,209,153   
Other Assets Less Liabilities — 0.7%        6,523,624   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (29.3%)

        (272,849,735 ) 
VRDP Shares, at Liquidation Value — (38.3%)        (356,400,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 931,483,042   
    

 

 

  

 

*   As of October 31, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 1,230,160,336   
 

 

 

  

Gross unrealized appreciation

   $ 69,165,345   

Gross unrealized depreciation

     (17,893,314 ) 
 

 

 

  

Net unrealized appreciation

   $ 51,272,031   
 

 

 

  

 

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 reflects the current yield as of report date.

 

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

 

(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.

 

 

                
10    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

 

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

 

Counterparty    Value      Unrealized
Appreciation		  

Raymond James Financial

      $12,351,204       $ 173,598   

 

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

 

(f)   Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds 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 February 1, 2016 to December 1, 2029 is $37,517,841.

 

(h)   Investments in issuers considered to be an affiliate of the Fund during the period ended October 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares Held
at July 31,
2013		     

Net

Activity

      Shares Held
at October 31,
2013		      Income  

FFI Institutional Tax-Exempt Fund

      9,261,003         (1,671,324)         7,589,679       $ 839   

 

(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 Guarantee 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
     Fannie Mae    Federal National Mortgage Association
     GAB    Grant Anticipation Bonds
     GARB    General Airport Revenue Bonds
     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
     NPFGC    National Public Finance Guarantee Corp.
     PSF-GTD    Permanent School Fund Guaranteed
     RB    Revenue Bonds
     S/F    Single-Family

 

                
   BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 2013    11

Schedule of Investments (concluded)

   

BlackRock MuniYield Quality Fund III, Inc. (MYI)

 

 

     Syncora    Syncora Guarantee

 

Ÿ  

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

 

Ÿ  

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

 

Ÿ  

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)

 

Ÿ  

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)

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 fair value hierarchy classification 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 is based on the pricing transparency of the investment 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, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of October 31, 2013:

 

     Level 1     Level 2     Level 3     Total  

Assets:

        
Investments:        

Long-Term Investments1

     —      $ 1,546,619,474        —      $ 1,546,619,474   

Short-Term Securities

   $ 7,589,679        —        —        7,589,679   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 7,589,679      $ 1,546,619,474        —      $ 1,554,209,153   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

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

      

Certain of the Fund’s assets and/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of October 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

   

     Level 1     Level 2     Level 3     Total  

Assets:

        

Cash

   $ 311,509        —        —      $ 311,509   

Liabilities:

        

TOB trust certificates

     —      $ (272,776,786 )      —        (272,776,786 ) 

VRDP Shares

     —        (356,400,000 )      —        (356,400,000 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 311,509      $ (629,176,786 )      —      $ (628,865,277 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

There were no transfers between levels during the period ended October 31, 2013.

 

                
12    BLACKROCK MUNIYIELD QUALITY FUND III, INC.    OCTOBER 31, 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: December 23, 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: December 23, 2013

 

By:      

/s/ Neal J. Andrews

  
 

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock MuniYield Quality Fund III, Inc.

Date: December 23, 2013