BlackRock MuniYield California Quality Fund, 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 811-06692

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: 07/31/2015

Date of reporting period: 04/30/2015

Item 1 – Schedule of Investments

Schedule of Investments April 30, 2015 (Unaudited)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

California — 93.3%

                 

Corporate — 0.5%

     

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34

    $ 2,435      $ 2,858,933   

County/City/Special District/School District — 29.1%

  

Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 6.00%, 8/01/36

      2,250        2,758,545   

City & County of San Francisco California, COP, AMT, Port Facilities Project, Series C, 5.25%, 3/01/32

      1,050        1,197,315   

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35

      2,000        2,317,180   

County of Los Angeles California Sanitation Districts Financing Authority, Refunding RB, (BHAC), 5.00%, 10/01/15 (a)

      5,000        5,099,200   

County of Orange California Sanitation District, COP, Series A, 5.00%, 2/01/35

      2,500        2,802,900   

County of Orange California Water District, COP, Refunding, 5.25%, 8/15/34

      9,045        10,407,448   

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

      2,755        3,341,953   

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/37

      2,705        3,104,258   

Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/21 (a)

      2,500        3,078,250   

Grossmont Union High School District, GO, Election of 2008, Series C, 5.50%, 8/01/33

      1,880        2,166,888   

Kern Community College District, GO, Safety Repair & Improvements, Series C, 5.25%, 11/01/32

      5,715        6,659,747   

Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 4/01/39

      2,075        2,359,420   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

County/City/Special District/School District (continued)

  

Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series 2013 A, 5.00%, 8/01/34

    $ 4,500      $ 5,188,950   

Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41

      8,140        9,307,195   

Orchard School District, GO, Election of 2001, Series A (AGC), 5.00%, 8/01/34

      7,490        8,519,575   

Oxnard Union High School District California, GO, Refunding, Series A (NPFGC), 6.20%, 8/01/30

      9,645        10,461,739   

Pittsburg Unified School District, GO, Election of 2006, Series B (AGM):

     

5.50%, 8/01/34

      2,000        2,260,780   

5.63%, 8/01/39

      4,500        5,104,575   

Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33

      5,000        5,579,000   

San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34

      7,000        7,054,460   

San Jose California Financing Authority, Series A, LRB, Convention Center Expansion & Renovation Project:

     

5.75%, 5/01/36

      2,570        2,691,253   

5.75%, 5/01/42

      4,500        5,351,085   

San Jose California Financing Authority, Refunding LRB:

     

Civic Center Project, 5.00%, 6/01/32

      3,375        3,845,981   

Convention Center Expansion & Renovation Project, 5.00%, 6/01/39

      8,300        9,294,008   

San Juan Unified School District, GO, Election of 2002 (AGM), 5.00%, 8/01/34

      6,475        7,379,816   

San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41

      3,000        3,584,430   

San Ramon Valley Unified School District, GO, Election of 2012, 4.00%, 8/01/40

      1,665        1,707,224   

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38

      5,600        6,491,464   

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015    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      $ 9,318,912   

West Contra Costa California Unified School District, GO:

     

Election of 2010, Series A (AGM), 5.25%, 8/01/41

      6,140        7,094,647   

Election of 2010, Series B, 5.50%, 8/01/39

      3,000        3,487,380   

Election of 2012, Series A, 5.50%, 8/01/39

      2,500        2,906,150   
    

 

 

  
               161,921,728   

Education — 6.2%

     

California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42

      2,750        3,198,250   

California State University, Refunding RB, Series C (NPFGC), 5.00%, 11/01/15 (a)

      14,000        14,337,540   

Gavilan Joint Community College District, GO, Election of 2004, Series D:

     

5.50%, 8/01/31

      2,165        2,535,994   

5.75%, 8/01/35

      8,400        9,959,376   

University of California, RB, 5.25%, 5/15/36

      3,680        4,334,599   
    

 

 

  
               34,365,759   

Health — 11.0%

     

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series A, 6.00%, 8/01/30

      1,500        1,822,425   

California Health Facilities Financing Authority, RB:

     

Children’s Hospital, Series A, 5.25%, 11/01/41

      10,000        11,176,300   

Providence Health Services, Series B, 5.50%, 10/01/39

      4,105        4,728,549   

Sutter Health, Series A, 5.25%, 11/15/46

      6,970        7,353,141   

Sutter Health, Series B, 6.00%, 8/15/42

      7,715        9,215,799   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A:

     

6.00%, 7/01/34

      2,310        2,669,783   

6.00%, 7/01/39

      5,500        6,347,110   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Health (concluded)

     

California Statewide Communities Development Authority, RB:

     

Kaiser Permanente, Series B, 5.25%, 3/01/45

    $ 6,000      $ 6,180,000   

Sutter Health, Series A, 6.00%, 8/15/42

      4,600        5,494,838   

California Statewide Communities Development Authority, Refunding RB:

     

Catholic Healthcare West, Series D (BHAC), 5.50%, 7/01/31

      865        946,362   

Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41

      2,850        3,170,283   

Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38

      1,625        1,935,115   
    

 

 

  
               61,039,705   

State — 7.6%

     

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      5,500        6,596,205   

6.00%, 4/01/38

      17,180        20,104,723   

6.00%, 11/01/39

      3,510        4,193,537   

State of California Public Works Board, LRB:

     

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

      3,670        4,389,540   

Various Capital Projects, Series I, 5.50%, 11/01/33

      2,575        3,082,945   

Various Capital Projects, Sub-Series I-1, 6.13%, 11/01/29

      3,365        4,083,798   
    

 

 

  
               42,450,748   

Tobacco — 2.3%

     

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/40

      11,480        12,706,064   

Transportation — 16.1%

     

City & County of San Francisco California Airports Commission, ARB:

     

Series E, 6.00%, 5/01/39

      9,650        11,309,124   

Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20

      860        864,068   

 

                
2    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015   

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)

                 

Transportation (continued)

     

City & County of San Francisco California Airports Commission, ARB (concluded):

     

Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.13%, 1/01/27

    $ 985      $ 989,511   

City & County of San Francisco California Airports Commission, Refunding ARB, AMT:

     

2nd Series 34E (AGM), 5.75%, 5/01/24

      5,000        5,583,300   

2nd Series 34E (AGM), 5.75%, 5/01/25

      3,500        3,895,255   

2nd Series A, 5.25%, 5/01/33

      1,435        1,629,328   

City of Los Angeles California Department of Airports, ARB, Los Angeles International Airport, Sub-Series B, 5.00%, 5/15/40

      2,500        2,799,650   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.25%, 5/15/29

      4,760        5,472,191   

City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34

      1,400        1,649,732   

County of Orange California, ARB, Series B, 5.75%, 7/01/34

      5,000        5,497,000   

County of Sacramento California, ARB:

     

Senior Series B, AMT (AGM), 5.25%, 7/01/33

      7,000        7,696,290   

Subordinated & Passenger Facility Charges/Grant, Series C (AGC), 5.75%, 7/01/39

      5,555        6,280,261   

County of San Bernardino California Transportation Authority, RB, Series A, 5.25%, 3/01/40

      4,500        5,265,360   

County of San Diego California Regional Airport Authority, Refunding ARB, Series B, 5.00%, 7/01/40

      6,350        7,018,655   

Los Angeles County Metropolitan Transportation Authority, RB, (AMBAC):

     

5.00%, 7/01/15 (a)

      9,050        9,124,029   

5.00%, 7/01/27

      655        660,319   

5.00%, 7/01/35

      1,120        1,129,094   
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Transportation (concluded)

     

Los Angeles Harbor Department, RB, Series B:

     

5.25%, 8/01/34

    $ 5,530      $ 6,309,841   

5.25%, 8/01/39

      2,760        3,149,215   

Port of Oakland, Refunding RB, AMT, Series P, 5.00%, 5/01/26

      3,000        3,448,620   
    

 

 

  
               89,770,843   

Utilities — 20.5%

     

Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36

      5,000        5,863,400   

City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39

      8,000        8,949,360   

City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A, 5.00%, 6/01/28

      2,000        2,306,100   

City of Napa California Water Revenue, RB, (AMBAC), 5.00%, 5/01/35

      8,070        8,678,478   

City of San Francisco California, Refunding RB, Public Utilities Water Commission, Series A, 5.25%, 11/01/31

      6,280        7,244,357   

City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A, 5.00%, 11/01/37

      10,000        11,251,200   

County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/38

      4,895        5,391,206   

Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41

      4,000        4,791,640   

East Bay California Municipal Utility District Water System Revenue, RB, Series A (NPFGC), 5.00%, 6/01/15 (a)

      10,905        10,950,038   

East Bay California Municipal Utility District Water System Revenue, Refunding RB (a):

     

Series A (NPFGC), 5.00%, 6/01/17

      4,000        4,362,680   

Sub-Series A (AGM), 5.00%, 6/01/17

      10,000        10,906,700   

Sub-Series A (AMBAC), 5.00%, 6/01/17

      3,000        3,270,690   

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015    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)

     

East Bay Municipal Utility District, Refunding RB, Sub-Series A, 5.00%, 6/01/30

    $ 5,000      $ 5,813,200   

El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39

      5,000        5,795,800   

Imperial Irrigation District, Refunding RB, Electric System, 5.13%, 11/01/38

      5,000        5,546,000   

Los Angeles Department of Water & Power, RB, Sub-Series A-2 (AGM), 5.00%, 7/01/35

      5,000        5,237,900   

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34

      2,000        2,283,260   

Santa Monica Community College District, GO, Series B, 5.00%, 8/01/44

      5,000        5,728,550   
    

 

 

  
               114,370,559   
Total Municipal Bonds — 93.3%              519,484,339   
    
   
Municipal Bonds Transferred to
Tender Option Bond Trusts (b)		  

California — 63.9%

                 

County/City/Special District/School District — 31.9%

  

Arcadia Unified School District California, GO, Election of 2006, Series A (AGM), 5.00%, 8/01/37

      7,925        8,452,777   

California Health Facilities Financing Authority, RB, Sutter Health, Series A, 5.00%, 8/15/52

      10,000        11,170,100   

County of San Luis Obispo California, Community College District, GO, Refunding, Election of 2014, Series A, 4.00%, 8/01/40

      6,585        6,723,718   

Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37

      12,150        13,102,317   

Los Angeles Community College District California, GO:

     

Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)

      12,000        13,136,400   

Election of 2001, Series A (NPFGC), 5.00%, 8/01/17

      26,438        28,941,150   
Municipal Bonds Transferred to
Tender Option Bond Trusts (b)		   

Par  

(000)

     Value  

California (continued)

                 

County/City/Special District/School District (concluded)

  

Los Angeles Community College District California, GO (concluded):

     

Election of 2003, Series F-1, 5.00%, 8/01/18

    $ 12,000      $ 13,532,880   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series C, 6.00%, 8/01/19 (a)

      9,596        11,537,146   

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

      5,000        5,658,100   

Palomar Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/44

      15,140        17,334,240   

Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/16

      10,000        10,588,700   

San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/30

      19,630        19,786,255   

West Valley-Mission Community College District, GO, Election of 2012, Series A, 4.00%, 8/01/40

      17,000        17,741,200   
    

 

 

  
               177,704,983   

Education — 10.5%

     

Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35

      11,000        12,548,910   

University of California, RB:

     

Limited Project, Series D (AGM), 5.00%, 5/15/16 (a)

      8,000        8,437,360   

Series AM, 5.25%, 5/15/44

      9,210        10,729,282   

Series I, 5.00%, 5/15/40

      11,500        13,180,495   

Series O, 5.75%, 5/15/19 (a)

      11,190        13,273,466   
    

 

 

  
               58,169,513   

Health — 3.9%

     

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

      19,860        21,945,896   

Transportation — 1.1%

     

City of Los Angeles California Department of Airports, RB, AMT, Senior Revenue, Series A, 5.00%, 5/15/40

      5,500        6,134,150   

 

                
4    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015   

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 Trusts (b)		   

Par  

(000)

     Value  

California (continued)

                 

Utilities — 16.5%

     

Anaheim Public Financing Authority, RB, Refunding:

     

Series A, 5.00%, 5/01/39

    $ 6,000      $ 6,763,980   

Series A, 5.00%, 5/01/46

      13,500        15,163,065   

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39

      4,380        4,963,635   

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

      8,510        9,354,192   

East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/17 (a)

      7,990        8,710,938   

Los Angeles Department of Water & Power, RB, Power System:

     

Sub-Series A-1 (AGM), 5.00%, 7/01/37

      13,525        14,652,516   

Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

      5,029        5,448,579   

Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37

      15,000        16,216,950   
Municipal Bonds Transferred to
Tender Option Bond Trusts (b)		   

Par  

(000)

     Value  

California (concluded)

                 

Utilities (concluded)

     

Rancho Water District Financing Authority, Refunding RB, Series A (AGM), 5.00%, 8/01/34

    $ 9,277      $ 10,302,099   
    

 

 

  
               91,575,954   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 63.9%		         355,530,496   

Total Long-Term Investments

(Cost — $812,190,407) — 157.2%

  

  

     875,014,835   
    
   
Short-Term Securities    Shares         

BIF California Municipal Money Fund, 0.00% (c)(d)

      1,698,054        1,698,054   

Total Short-Term Securities

(Cost — $1,698,054) — 0.3%

  

  

     1,698,054   
Total Investments (Cost — $813,888,461*) — 157.5%        876,712,889   
Other Assets Less Liabilities — 1.8%        9,626,537   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (29.4%)

   

     (163,338,064 ) 
VRDP Shares, at Liquidation Value — (29.9%)        (166,500,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 556,501,362   
    

 

 

  

 

*  As of April 30, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

      

Tax cost

      $ 650,054,202   
    

 

 

  

Gross unrealized appreciation

      $ 64,392,188   

Gross unrealized depreciation

        (1,052,822 ) 
    

 

 

  

Net unrealized appreciation

      $ 63,339,366   
    

 

 

  

 

Notes to Schedule of Investments

 

(a)   U.S. 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.

 

(b)   Represent bonds transferred to a TOB Trust in exchange of cash and residual interest certificates received by the Fund. These bonds serve as collateral in a secured borrowing.

 

(c)   During the period ended April 30, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015    5

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

 

Affiliate      Shares Held
at July 31,
2014		       

Net

Activity

        Shares Held
at April 30,
2015		        Income  

BIF California Municipal Money Fund

        1,241,242           456,812           1,698,054         $ 1   

 

(d)   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

 

•  

As of April 30, 2015, financial futures contracts outstanding were as follows:

 

Contracts

Short

     Issue   Exchange   Expiration  

Notional

Value

    

Unrealized

Depreciation

  
  (400 )    10-Year U.S. Treasury Note   Chicago Board of Trade   June 2015   $ 51,350,000      $ (12,994 ) 

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.

 

                
6    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

 

•  

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. 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. 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. The three levels of the fair value hierarchy are as follows:

 

  •  

Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or 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)

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. 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.

As of April 30, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 
Investments:                 

Long Term Investments1

     —         $ 875,014,835         —      $ 875,014,835   

Short-term Securities

   $ 1,698,054           —         —        1,698,054   
 

 

 

  

Total

   $ 1,698,054         $ 875,014,835         —      $ 876,712,889   
 

 

 

  

1    See above Schedule of Investments for values in each sector.

       

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments2                 

Liabilities:

                 

Interest rate contracts

   $ (12,994 )         —         —      $ (12,994 ) 

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

       

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015    7

Schedule of Investments (concluded)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of April 30, 2015, 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

   $ 552,000           —         —      $ 552,000   

Liabilities:

                 

TOB trust certificates

     —         $ (163,319,321 )       —        (163,319,321 ) 

VRDP Shares

     —           (166,500,000 )       —        (166,500,000 ) 
 

 

 

  

Total

   $ 552,000         $ (329,819,321 )       —      $ (329,267,321 ) 
 

 

 

  

During the period ended April 30, 2015, there were no transfers between levels.

 

                
8    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2015   

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 22, 2015
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 22, 2015
By: /s/ Neal J. Andrews                
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield California Quality Fund, Inc.
Date: June 22, 2015