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 811-06692
Name of Fund: BlackRock MuniYield California Quality Fund, Inc. (MCA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield
California Quality Fund, 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: 04/30/2014
Item 1 – Schedule of Investments
| Schedule of Investments April 30, 2014 (Unaudited) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| California — 98.6% |
||||||||
| Corporate — 0.5% |
||||||||
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34 |
$ | 2,435 | $ | 2,793,115 | ||||
| County/City/Special District/School District — 30.2% |
|
|||||||
| Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 6.00%, 8/01/36 |
2,250 | 2,671,605 | ||||||
| City & County of San Francisco California, COP, AMT, Port Facilities Project, Series C, 5.25%, 3/01/32 |
1,050 | 1,167,474 | ||||||
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 |
2,000 | 2,317,660 | ||||||
| County of Los Angeles California Metropolitan Transportation Authority, Refunding RB, Proposition A, 1st Tier, Senior Series A (AMBAC), 5.00%, 7/01/27 |
4,000 | 4,190,560 | ||||||
| County of Orange California Sanitation District, COP, Series A, 5.00%, 2/01/35 |
2,500 | 2,808,225 | ||||||
| County of Orange California Water District, COP, Refunding, 5.25%, 8/15/34 |
9,045 | 10,343,500 | ||||||
| County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 |
2,530 | 3,057,986 | ||||||
| Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/37 |
2,590 | 2,895,516 | ||||||
| Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40 |
2,500 | 2,910,000 | ||||||
| Grossmont Union High School District, GO, Election of 2008, Series C, 5.50%, 8/01/33 |
1,880 | 2,160,421 | ||||||
| Kern Community College District, GO, Safety Repair & Improvements, Series C, 5.25%, 11/01/32 |
5,715 | 6,552,419 | ||||||
| Los Angeles Community Redevelopment Agency California, RB, Bunker Hill Project, Series A (AGM), 5.00%, 12/01/27 |
7,000 | 7,174,090 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| County/City/Special District/School District (continued) |
|
|||||||
| Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 4/01/39 |
$ | 2,075 | $ | 2,359,649 | ||||
| Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series 2013 A, 5.00%, 8/01/34 |
4,500 | 4,995,540 | ||||||
| Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41 |
8,140 | 8,957,419 | ||||||
| Orchard School District, GO, Election of 2001, Series A (AGC), 5.00%, 8/01/34 |
7,490 | 8,076,617 | ||||||
| Oxnard Union High School District California, GO, Refunding, Series A (NPFGC), 6.20%, 8/01/30 |
9,645 | 10,486,816 | ||||||
| Pittsburg Unified School District, GO, Election of 2006, Series B (AGM): |
||||||||
| 5.50%, 8/01/34 |
2,000 | 2,265,420 | ||||||
| 5.63%, 8/01/39 |
4,500 | 5,104,215 | ||||||
| Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33 |
5,000 | 5,643,750 | ||||||
| San Jose California Financing Authority, Series A, LRB, Convention Center Expansion & Renovation Project: |
||||||||
| 5.75%, 5/01/36 |
2,570 | 2,783,130 | ||||||
| 5.75%, 5/01/42 |
4,500 | 5,231,565 | ||||||
| San Jose California Financing Authority, Refunding LRB: |
||||||||
| Civic Center Project, 5.00%, 6/01/32 |
3,375 | 3,741,052 | ||||||
| Convention Center Expansion & Renovation Project, 5.00%, 6/01/39 |
19,000 | 20,600,560 | ||||||
| San Juan Unified School District, GO, Election of 2002 (AGM), 5.00%, 8/01/34 |
6,475 | 7,042,404 | ||||||
| San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41 |
3,000 | 3,359,550 | ||||||
| Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 |
5,600 | 6,478,416 | ||||||
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 | 1 |
| Schedule of Investments (continued) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| County/City/Special District/School District (concluded) |
|
|||||||
| Walnut Valley Unified School District, GO, Election of 2007, Series B, 5.75%, 8/01/41 |
$ | 7,680 | $ | 8,735,770 | ||||
| West Contra Costa California Unified School District, GO: |
||||||||
| Election of 2010, Series A (AGM), 5.25%, 8/01/41 |
6,140 | 6,626,656 | ||||||
| Election of 2010, Series B, 5.50%, 8/01/39 |
3,000 | 3,354,810 | ||||||
| Election of 2012, Series A, 5.50%, 8/01/39 |
2,500 | 2,797,725 | ||||||
|
|
|
|||||||
| 166,890,520 | ||||||||
| Education — 5.7% |
||||||||
| California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42 |
2,750 | 3,117,785 | ||||||
| Gavilan Joint Community College District, GO, Election of 2004, Series D: |
||||||||
| 5.50%, 8/01/31 |
2,165 | 2,480,397 | ||||||
| 5.75%, 8/01/35 |
8,400 | 9,693,936 | ||||||
| University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
15,050 | 16,323,682 | ||||||
|
|
|
|||||||
| 31,615,800 | ||||||||
| Health — 14.3% |
||||||||
| ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series A, 6.00%, 8/01/30 |
2,345 | 2,819,863 | ||||||
| California Health Facilities Financing Authority, RB: |
||||||||
| Children’s Hospital, Series A, 5.25%, 11/01/41 |
10,500 | 11,217,150 | ||||||
| Providence Health Services, Series B, 5.50%, 10/01/39 |
4,105 | 4,709,215 | ||||||
| Sutter Health, Series A, 5.25%, 11/15/46 |
6,970 | 7,223,150 | ||||||
| Sutter Health, Series B, 6.00%, 8/15/42 |
7,715 | 9,139,035 | ||||||
| California Health Facilities Financing Authority, Refunding RB: |
||||||||
| Catholic Healthcare West, Series A, 6.00%, 7/01/34 |
2,270 | 2,561,286 | ||||||
| Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
5,500 | 6,109,070 | ||||||
| Stanford Hospital, Series A-3, 5.50%, 11/15/40 |
3,000 | 3,392,520 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
|
|||||||
| Health (concluded) |
|
|||||||
| California Statewide Communities Development Authority, RB: |
||||||||
| Kaiser Permanente, Series A, 5.00%, 4/01/42 |
$ | 14,000 | $ | 14,883,260 | ||||
| Kaiser Permanente, Series B, 5.25%, 3/01/45 |
6,000 | 6,133,320 | ||||||
| Sutter Health, Series A, 6.00%, 8/15/42 |
4,460 | 5,283,227 | ||||||
| California Statewide Communities Development Authority, Refunding RB: |
||||||||
| Catholic Healthcare West, Series D (BHAC), 5.50%, 7/01/31 |
865 | 974,275 | ||||||
| Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41 |
2,525 | 2,668,420 | ||||||
| Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38 |
1,625 | 1,875,591 | ||||||
|
|
|
|||||||
| 78,989,382 | ||||||||
| Housing — 0.0% |
||||||||
| California Rural Home Mortgage Finance Authority, Mortgage-Backed Securities Program, RB, Series A, AMT (Ginnie Mae), 6.35%, 12/01/29 |
25 | 25,030 | ||||||
| County of San Bernardino California, Refunding RB, Home Mortgage-Backed Securities, Series A-1, AMT (Ginnie Mae), 6.25%, 12/01/31 |
15 | 15,002 | ||||||
|
|
|
|||||||
| 40,032 | ||||||||
| State — 9.7% |
||||||||
| State of California, GO, Various Purposes: |
||||||||
| 6.00%, 3/01/33 |
5,500 | 6,591,970 | ||||||
| 6.00%, 4/01/38 |
17,510 | 20,587,032 | ||||||
| 6.00%, 11/01/39 |
3,510 | 4,195,714 | ||||||
| State of California Public Works Board, LRB: |
||||||||
| Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34 |
3,670 | 4,349,721 | ||||||
| Series A, 5.00%, 9/01/39 |
8,000 | 8,587,280 | ||||||
| Series B, 5.00%, 10/01/39 |
1,965 | 2,110,233 | ||||||
| Various Capital Projects, Series I, 5.50%, 11/01/33 |
2,575 | 2,986,021 | ||||||
| 2 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 |
| Schedule of Investments (continued) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| State (concluded) |
||||||||
| State of California Public Works Board, LRB (concluded): |
||||||||
| Various Capital Projects, Sub-Series I-1, 6.13%, 11/01/29 |
$ | 3,365 | $ | 4,025,348 | ||||
|
|
|
|||||||
| 53,433,319 | ||||||||
| Transportation — 15.9% |
||||||||
| City & County of San Francisco California Airports Commission, ARB: |
||||||||
| Series E, 6.00%, 5/01/39 |
9,650 | 11,385,070 | ||||||
| Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20 |
1,000 | 1,004,350 | ||||||
| Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.13%, 1/01/27 |
985 | 989,433 | ||||||
| City & County of San Francisco California Airports Commission, Refunding ARB, AMT: |
||||||||
| 2nd Series 34E (AGM), 5.75%, 5/01/24 |
5,000 | 5,679,300 | ||||||
| 2nd Series 34E (AGM), 5.75%, 5/01/25 |
3,500 | 3,958,290 | ||||||
| 2nd Series A, 5.25%, 5/01/33 |
1,435 | 1,586,636 | ||||||
| City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Sub-Series B, 5.00%, 5/15/40 |
2,500 | 2,682,525 | ||||||
| City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, |
3,760 | 4,373,895 | ||||||
| City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34 |
1,400 | 1,602,132 | ||||||
| County of Los Angeles Metropolitan Transportation Authority, Refunding RB, Series A (AMBAC), 5.00%, 7/01/35 |
6,825 | 7,130,146 | ||||||
| County of Orange California, ARB, Series B, 5.75%, 7/01/34 |
5,000 | 5,668,600 | ||||||
| County of Sacramento California, ARB: |
||||||||
| Senior Series B, AMT (AGM), 5.25%, 7/01/33 |
8,055 | 8,513,732 | ||||||
| Subordinated & Passenger Facility Charges/Grant, Series C (AGC), 5.75%, 7/01/39 |
5,555 | 6,354,365 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| Transportation (concluded) |
||||||||
| County of San Diego California Regional Airport Authority, Refunding ARB, Series B, 5.00%, 7/01/40 |
$ | 6,350 | $ | 6,651,307 | ||||
| Los Angeles Harbor Department, RB, Series B: |
||||||||
| 5.25%, 8/01/34 |
5,530 | 6,310,836 | ||||||
| 5.25%, 8/01/39 |
2,535 | 2,892,942 | ||||||
| San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34 |
10,500 | 10,920,630 | ||||||
|
|
|
|||||||
| 87,704,189 | ||||||||
| Utilities — 22.3% |
||||||||
| Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 |
5,000 | 5,760,350 | ||||||
| City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A, 5.00%, 6/01/28 |
2,000 | 2,297,620 | ||||||
| City of Napa California Water Revenue, RB (AMBAC), 5.00%, 5/01/35 |
9,070 | 9,444,047 | ||||||
| City of San Francisco California, Refunding RB, Public Utilities Water Commission, Series A, 5.25%, 11/01/31 |
6,280 | 7,207,305 | ||||||
| City of San Francisco California Public Utilities Commission Water Revenue, RB Series A, 5.00%, 11/01/37 |
23,000 | 25,511,830 | ||||||
| County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/38 |
4,895 | 5,404,863 | ||||||
| Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 |
4,000 | 4,836,200 | ||||||
| East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35 |
15,000 | 15,610,950 | ||||||
| East Bay Municipal Utility District, Refunding RB: |
||||||||
| Series A (NPFGC), 5.00%, 6/01/37 |
4,000 | 4,408,960 | ||||||
| Sub-Series A, 5.00%, 6/01/30 |
5,000 | 5,697,550 | ||||||
| Sub-Series A (AGM), 5.00%, 6/01/37 |
10,000 | 11,022,400 | ||||||
| Sub-Series A (AMBAC), 5.00%, 6/01/33 |
3,000 | 3,314,370 | ||||||
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 | 3 |
| Schedule of Investments (continued) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| Utilities (concluded) |
| |||||||
| El Dorado Irrigation District /El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39 |
$ | 5,000 | $ | 5,594,500 | ||||
| Imperial Irrigation District, Refunding RB, Electric System, 5.13%, 11/01/38 |
5,835 | 6,345,679 | ||||||
| Los Angeles Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39 |
8,000 | 8,796,000 | ||||||
| San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34 |
2,000 | 2,277,240 | ||||||
|
|
|
|||||||
| 123,529,864 | ||||||||
| Total Municipal Bonds — 98.6% | 544,996,221 | |||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (a) |
||||||||
| California — 51.4% |
||||||||
| County/City/Special District/School District — 26.7% |
| |||||||
| Arcadia Unified School District California, GO, Election of 2006, Series A (AGM), 5.00%, 8/01/37 |
7,925 | 8,665,896 | ||||||
| County of Los Angeles California Sanitation Districts Financing Authority, Refunding RB, Capital Project 14 (BHAC), |
4,998 | 5,260,140 | ||||||
| Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37 |
12,150 | 13,466,938 | ||||||
| Los Angeles Community College District California, GO: |
||||||||
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 |
26,438 | 29,303,082 | ||||||
| Election of 2001, Series A (AGM), 5.00%, 8/01/32 |
12,000 | 13,300,680 | ||||||
| Election of 2003, Series E (AGM), 5.00%, 8/01/31 |
7,497 | 8,070,013 | ||||||
| Election of 2003, Series F-1, 5.00%, 8/01/33 |
12,000 | 13,417,560 | ||||||
| Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33 |
9,596 | 11,398,090 | ||||||
| Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
5,000 | 5,567,300 | ||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (a) |
Par (000) |
Value | ||||||
| California (continued) |
||||||||
| County/City/Special District/School District (concluded) |
| |||||||
| Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/30 |
$ | 10,000 | $ | 10,763,500 | ||||
| San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 |
7,550 | 8,126,442 | ||||||
| San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/30 |
19,630 | 20,427,959 | ||||||
|
|
|
|||||||
| 147,767,600 | ||||||||
| Education — 11.4% |
| |||||||
| California State University, Refunding RB, Systemwide, Series C (NPFGC), 5.00%, 11/01/35 |
20,000 | 21,114,000 | ||||||
| Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35 |
11,000 | 12,015,740 | ||||||
| University of California, RB: |
||||||||
| Limited Project, Series D (AGM), 5.00%, 5/15/41 |
8,000 | 8,705,440 | ||||||
| Series L, 5.00%, 5/15/40 |
7,398 | 8,050,582 | ||||||
| Series O, 5.75%, 5/15/34 |
11,190 | 13,040,975 | ||||||
|
|
|
|||||||
| 62,926,737 | ||||||||
| Utilities — 13.3% |
| |||||||
| County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 |
8,510 | 9,463,375 | ||||||
| East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/37 |
7,990 | 8,868,181 | ||||||
| Los Angeles Department of Water & Power, RB, Power System: |
||||||||
| Sub-Series A-1 (AGM), 5.00%, 7/01/37 |
13,525 | 14,958,092 | ||||||
| Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 |
5,029 | 5,562,207 | ||||||
| Sub-Series A-2 (AGM), 5.00%, 7/01/35 |
7,500 | 8,121,075 | ||||||
| Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37 |
15,000 | 16,390,350 | ||||||
| 4 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 |
| Schedule of Investments (continued) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (a) |
Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| Utilities (concluded) |
||||||||
| Rancho Water District Financing Authority, Refunding RB, Series A (AGM), 5.00%, 8/01/34 |
$ | 9,277 | $ | 10,372,998 | ||||
|
|
|
|||||||
| 73,736,278 | ||||||||
| Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts — 51.4% |
284,430,615 | |||||||
| Total Long-Term Investments (Cost — $768,995,469) — 150.0% |
829,426,836 | |||||||
| Short-Term Securities — 1.0% | Shares | |||||||
| BIF California Municipal Money Fund, 0.00% (b)(c) |
5,795,269 | 5,795,269 | ||||||
| Total Short-Term Securities (Cost — $5,795,269) — 1.0% |
|
5,795,269 | ||||||
| Value | ||||||||
| Total Investments (Cost — $774,790,738*) — 151.0% |
$ | 835,222,105 | ||||||
| Other Assets Less Liabilities — 3.1% |
16,986,758 | |||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (24.0%) |
(132,735,776 | ) | ||||||
| VRDP Shares, at Liquidation Value — (30.1%) |
(166,500,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% |
$ | 552,973,087 | ||||||
|
|
|
|||||||
| * As of April 30, 2014, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows: |
| |||||||
| Tax cost |
$ | 641,864,470 | ||||||
|
|
|
|||||||
| Gross unrealized appreciation |
$ | 60,774,526 | ||||||
| Gross unrealized depreciation |
(119,717 | ) | ||||||
|
|
|
|||||||
| Net unrealized appreciation |
$ | 60,654,809 | ||||||
|
|
|
|||||||
| Notes to Schedule of Investments |
| (a) | Represent bonds transferred to a TOB. In exchange for which the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction. |
| (b) | Investments in issuers considered to be an affiliate of the Fund during the period ended April 30, 2014, 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 April 30, 2014 |
Income | ||||||||||||
| BIF California Municipal Money Fund |
10,447,577 | (4,652,308 | ) | 5,795,269 | $ | 275 | ||||||||||
| (c) | Represents the current yield as of report date. |
| Portfolio Abbreviations |
| 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. | |||
| COP | Certificates of Participation | |||
| GO | General Obligation Bonds | |||
| LRB | Lease Revenue Bonds | |||
| NPFGC | National Public Finance Guarantee Corp. | |||
| RB | Revenue Bonds |
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 | 5 |
| Schedule of Investments (continued) | BlackRock MuniYield California Quality Fund, Inc. (MCA) |
| Ÿ | Financial futures contracts outstanding as of April 30, 2014 were as follows: |
| Contracts Sold |
Issue | Exchange | Expiration | Notional Value |
Unrealized Appreciation |
|||||||||
| (480) | 10-Year U.S. Treasury Note | Chicago Board of Trade | June 2014 | $ | 59,722,500 | $ | 76,299 | |||||||
| Ÿ | For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| Ÿ | 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: |
| 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 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 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 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, 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, 2014:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: |
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| Investments: | ||||||||||||||||
| Long-Term Investments 1 |
— | $ | 829,426,836 | — | $ | 829,426,836 | ||||||||||
| Short-Term Securities |
$ | 5,795,269 | — | — | 5,795,269 | |||||||||||
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| Total |
$ | 5,795,269 | $ | 829,426,836 | — | $ | 835,222,105 | |||||||||
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| 1 | See above Schedule of Investments for values in each sector. |
| 6 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 |
| Schedule of Investments (concluded) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) |
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Derivative Financial Instruments 2 | ||||||||||||||||
| Assets: |
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| Interest rate contracts |
$ | 76,299 | — | — | $ | 76,299 | ||||||||||
| 2 | Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The carrying amount for certain of the Fund’s assets and/or liabilities approximates fair value for financial reporting purposes. As of April 30, 2014, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: |
||||||||||||||||
| Cash pledged for financial futures contracts |
$ | 634,000 | — | — | $ | 634,000 | ||||||||||
| Liabilities: |
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| TOB trust certificates |
— | $ | (132,702,826 | ) | — | (132,702,826 | ) | |||||||||
| VRDP Shares |
— | (166,500,000 | ) | — | (166,500,000 | ) | ||||||||||
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| Total |
$ | 634,000 | $ | (299,202,826 | ) | — | $ | (298,568,826 | ) | |||||||
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There were no transfers between levels during the period ended April 30, 2014.
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2014 | 7 |
| 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 California Quality Fund, Inc. | ||
| By: |
/s/ John M. Perlowski | |
| John M. Perlowski | ||
| Chief Executive Officer (principal executive officer) of | ||
| BlackRock MuniYield California Quality Fund, Inc. | ||
Date: June 23, 2014
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 California Quality Fund, Inc. |
Date: June 23, 2014
| By: |
/s/ Neal J. Andrews | |
| Neal J. Andrews | ||
| Chief Financial Officer (principal financial officer) of | ||
| BlackRock MuniYield California Quality Fund, Inc. |
Date: June 23, 2014