TAX-FREE FIXED INCOME FUND III FOR PUERTO RICO RESIDENTS, INC. AMENDED AND RESTATED TRANSFER AGENCY, REGISTRAR, AND SHAREHOLDER SERVICING AGREEMENT

(a)

“Authorized Person.” The term ‘Authorized Person’ shall mean any officer of the Fund and any other person who is duly authorized by the Fund’s Board of Directors (the “Board”) to give Oral Instructions and Written Instructions on behalf of the Fund. Such persons and their positions with the Fund and specimen signatures are set forth in Exhibit A attached hereto, as such exhibit may be amended by the Fund from time to time and provided to UBSTC.

(b)

“Oral Instructions.” The term “Oral Instructions” shall mean verbal instructions received by UBSTC from an Authorized Person by telephone or in person.

(c)

“Shares.” The term “Shares” shall mean the shares of common stock, par value $0.01 per share, of the Fund.

(d)

“Written Instructions.” ‘The term “Written Instructions” shall mean written instructions signed by an Authorized Person and received by UBSTC. The instructions may be delivered by hand, mail, telegram, cable, telex, facsimile or email.

(a)

Certificate of Incorporation: a copy of the Certificate of Incorporation of the Fund, and all amendments thereto, certified by the Department of State of Puerto Rico;

(b)

By-laws: a copy of the By-laws of the Fund incorporating all amendments thereto, certified by the Secretary of the Fund under the Fund’s corporate seal;

(c)

Specimen Share Certificates: specimens of all forms of outstanding certificates evidencing Shares (the “Stock Certificates”) as approved by the Board, together with a certificate by the Secretary of the Fund as to such approval;

(d)

Certified or authenticated copies of the resolutions of the Board approving the appointment of UBSTC to provide the services to the Fund described herein and approving this Agreement;

(e)

Copies of the Fund’s [administration agreement with State Street Corporation];

(f)

A copy of the Fund’s underwriting agreement with UBS Financial Services Incorporated of Puerto Rico; and

(g)

Copies of any and all amendments or supplements to the foregoing agreements and documents.

(a)

Advice of the Fund. If UBSTC is in doubt as to any action it should or should not take, UBSTC will request directions or advice, including Oral Instructions or Written Instructions, from the Fund.

(b)

Advice of Counsel. If UBSTC shall be in doubt as to any question of law pertaining to any action it should or should not take. UBSTC may request advice at its own cost from such counsel of its own choosing (who may be counsel for the Fund).

(c)

Conflicting Advice. In the event of a conflict between the directions, advice, Oral Instructions or Written Instructions that UBSTC receives from the Fund and the advice it receives from counsel. UBSTC may rely upon and follow the advice of counsel. In the event UBSTC chooses to rely on the advice of counsel. UBSTC shall so advise the Fund and UBSTC shall remain liable for any action or omission on the part of UBSTC which constitutes willful misfeasance, bad faith, gross negligence or reckless disregard by UBSTC of any of its duties, obligations or responsibilities under this this Agreement.

(d)

Protection of UBSTC. UBSTC shall be protected in any action it takes or does not take in reliance upon directions, advice, Oral Instructions or Written Instructions it receives from the Fund or from counsel in accordance with this Agreement and which UBSTC believes, in good faith, to be consistent with those directions, advice, Oral Instructions or Written Instructions.

(a)

The Fund agrees to indemnify, defend and hold harmless UBSTC and its affiliates and their respective directors, trustees, officers, agents and employees, from any and all claims, losses or damages arising directly or indirectly from any action or omission to act taken or omitted by or on behalf of UBSTC in connection with the provision of services to the Fund under this Agreement, provided that in each case in which indemnification is sought, UBSTC has not acted with willful misfeasance, bad faith, gross negligence or reckless disregard of its duties, obligations or responsibilities under this Agreement.

(b)

UBSTC agrees to indemnify, defend and hold harmless the Fund and its affiliates and their respective directors, trustees, officers, agents and employees, from any and all claims, losses or damages arising directly or indirectly out of UBSTC’s willful misfeasance, bad faith, negligence or reckless disregard of its duties, obligations or responsibilities under this Agreement.

(c)

Insurance. UBSTC shall maintain insurance of the types and in the amounts deemed by it to be appropriate. To the extent that insurance policies provide for coverage of claims for liability or indemnity by the parties set forth in this Agreement, the contracts of insurance shall take precedence, and no provision of this Agreement shall be construed to relieve an insurer of any obligation to pay claims to the Fund, UBSTC or other insured party which would otherwise be a covered claim in the absence of any provision of this Agreement.

(d)

This Section 9 shall survive termination of this Agreement.

(a)

Each party shall keep the Confidential Information (as defined in subsection (b) below) of the other party in confidence and will not use or disclose or allow access to or use of such Confidential Information except in connection with the activities contemplated by this Agreement or as otherwise expressly agreed in writing. Each party acknowledges that the Confidential Information of the disclosing party will remain the sole property of such party. In complying with the first sentence of this subsection (a), each party will use the same degree of care it uses to protect its own confidential information, but in no event less than a commercially reasonable degree of care.

(b)

Subject to subsections (c) and (d) below, “Confidential Information” means (i) except to the extent disclosure may be required by the applicable law or regulation, this Agreement and its contents, all compensation agreements, arrangements and understandings (including waivers) respecting this Agreement, disputes pertaining to the Agreement, and information about a party’s exercise of rights hereunder, performance of obligations hereunder or other conduct of a party in connection with the Agreement, in whatever form and (ii) information and data of, owned by or about a disclosing party or its affiliates, customers, or subcontractors that may be provided to the other party or become known to the other party in the course of the relationship established by this Agreement, regardless of form or content, including but not limited to (A) competitively sensitive material, and not generally known to the public, including, but not limited to, studies, plans, reports, surveys, summaries, documentation and analyses, regardless of form, information about product plans, marketing strategies, finances, operations, customer relationships, customer profiles, customer lists, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of the Fund or UBSTC, their respective subsidiaries and affiliates and the customers, clients and suppliers of any of them; (B) scientific, technical or technological information, a design, process, procedure, formula, or improvement that is commercially valuable and secret in the sense that its confidentiality affords the Fund or UBSTC a competitive advantage over its competitors; (C) a confidential or proprietary concept, documentation, report, data, specification, computer software, source code, object code, flow chart, database, invention, know how, trade secret, whether or not patentable or copyrightable; (D) information related to security, disaster recovery, business continuity and any other operational plans, procedures, practices and protocols, and (E) anything designated as confidential.

(c)

Information or data that would otherwise constitute Confidential Information under subsection (b) above shall not constitute Confidential Information to the extent it:

(i)

is already known to the receiving party at the time it is obtained;

(ii)

is or becomes publicly known or available through no wrongful act of the receiving party;

(iii)

is rightfully received from a third party who. to the receiving party’s knowledge, is not under a duty of confidentiality;

(iv)

is released by the protected party to a third party without restriction; or

(v)

has been or is independently developed or obtained by the receiving party without reference to the Confidential Information provided by the protected party.

(d)

Confidential Information of a disclosing party may be used or disclosed by the receiving party in the circumstances set forth below but except for such permitted use or disclosure shall remain Confidential Information subject to all applicable terms of this Agreement:

(i)

in connection with activities contemplated by this Agreement;

(ii)

as required by law or regulation or pursuant to a court order, subpoena, order or request of a governmental or regulatory or self- regulatory authority or agency, or binding discovery request in pending litigation (provided the receiving party will provide the other party written notice of such requirement or request, to the extent such notice is permitted, and subject to proper jurisdiction, if applicable);

(iii)

in connection with inquiries, examinations, audits or other reviews by a governmental, regulatory or self-regulatory authority or agency, audits by independent auditors or requests for advice or opinions from counsel; or

(iv)

the information or data is relevant and material to any claim or cause of action between the parties or the defense of any claim or cause of action asserted against the receiving party.

(e)

Subject to the exceptions in (d), each party agrees not to publicly disseminate Confidential Information of the other party or mutual Confidential Information.

(f)

The provisions of this Section 10 shall survive termination of this Agreement for a period of one (1) year after such termination.

(a)

Dividends and Distributions. Upon receipt of a resolution of the Board authorizing the declaration and payment of dividends and distributions, UBSTC shall issue such dividends and distributions in cash or if the resolution so provides, pay such dividends and distributions in Shares, as provided in the Fund then current prospectus (the “Prospectus”) and Dividend Reinvestment Plan. Such issuance or payment shall be made after deduction and payment of the required amount of funds to be withheld in accordance with any applicable tax laws or other laws, rules or regulations. UBSTC shall mail to the Fund’s shareholders such tax forms and other information, or permissible substitute notice, relating to dividends and

(b)

Transfer Restrictions: Stock Certificates. In the absence of contrary Written Instructions, UBSTC is authorized to take the following actions:

(i)

Stock Certificates.

1)

The Fund will supply UBSTC with a sufficient supply of stock certificates representing the Shares in the form approved from time to time by the Board. Such stock certificates shall be properly signed, manually or by facsimile signature, by an Authorized Person and shall bear the corporate seal or facsimile thereof of the Fund, and notwithstanding the death, resignation or removal of any officer of the Fund, such executed certificates bearing the manual or facsimile signature of such officer shall remain valid and may be issued to shareholders until UBSTC is otherwise directed by Written Instructions.

2)

UBSTC shall place a stop notice against any certificate reported to be lost or stolen and shall comply with all applicable federal regulatory and Puerto Rico law requirements for reporting such loss or alleged misappropriation. In the case of the loss or destruction of any certificate representing Shares, no new certificate shall be issued in lieu thereof, unless there shall first have been furnished an appropriate bond of indemnity issued by the surety company approved by UBSTC.

3)

Upon receipt of signed stock certificates, which shall be in proper form for transfer, and upon cancellation or destruction thereof. UBSTC shall countersign, register and issue new certificates for the same number of Shares and

4)

Upon receipt of the stock certificates, which shall be in proper form for transfer, together with the shareholder’s instructions to hold such stock certificates for safekeeping, UBSTC shall reduce such Shares to uncertificated status, while retaining the appropriate registration in the name of the shareholder upon the transfer books.

(c)

UBSTC agrees to furnish the Fund with (1) annual reports of its financial condition, consisting of a balance sheet, earnings statement and any other financial information as is made public by UBSTC in connection with the foregoing and (2) semi-annually with a copy of a Statement on Standards for Attestation Engagements No. 16 (SSAE 16), report on controls at a Service Organization or successor report issued by UBSTC’s certified public accountants pursuant to Rule 17Ad-l3 under the Exchange Act as filed with the Securities and Exchange Commission (if applicable). The annual financial statements will be certified by UBSTC’s certified public accountants and the posting of a current copy thereof on UBSTC’s website shall be deemed to be delivery to the Fund.

(d)

UBSTC shall assist the Fund to fulfill the Fund’s responsibilities under certain provisions of USA PATRIOT Act, ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act. Title V of Gramm ▇▇▇▇▇ ▇▇▇▇▇▇ Act, Securities Act, Exchange Act, and 1940 Act, including, inter alia, Rule 38a-1, by maintaining a compliance program that adequately covers certain business processes relating to key activities of the transfer agent/service provider function. These business processes are anti-money laundering, certificate processing, correspondence processing, fingerprinting, lost securityholder processing, reconciliation and control, transaction processing, customer identification, transfer agent administration, safeguarding fund assets and securities, disaster recovery and business continuity, UBSTC reserves the right to make changes thereto as experience suggests alternative and better ways to perform the affected function provided that the affected function will not be diminished in comparison with those currently provided by UBSTC to the Fund under this Agreement. UBSTC shall provide the Fund with written notice of any such changes.

(e)

UBSTC shall employ commercially reasonable measures to comply on behalf of a Fund with the unclaimed property laws and regulations of the States and Territories of the United States (as defined below) (“Unclaimed Property Laws”) with respect to Eligible Property (as defined below). In connection with its performance of the foregoing services (“Unclaimed Property Services”), UBSTC and its subcontractors shall be entitled to rely

“States and Territories of the United States” means the states of the United States of America, the District of Columbia, Guam. Puerto Rico, U.S. Virgin Islands and any territory or commonwealth of the United States of America with a formal local government substantially equivalent to a state government which subsequent to the date of this Agreement adopts a statute substantially similar to the Uniform Unclaimed Property Act of 1995 (or its then current successor).

“Eligible Property” means property beneficially owned by a person or entity other than the Fund and held in a bank account maintained by UBSTC for or on behalf of the Fund, or property held in a shareholder account, which is (x) subject to reporting or escheat under an Unclaimed Property Law. (y) of a nature or type or classification reasonably related to the services performed by UBSTC under this Agreement (such as cash amounts representing non- negotiated dividend checks and shares in abandoned shareholder accounts), and (z) under the control of UBSTC.

This Agreement shall continue until terminated by the Fund or by UBSTC on sixty (60) days’ prior written notice to the other party.

Upon the termination hereof, the Fund shall pay to UBSTC such compensation as may be due for the period prior to the effective date of such termination. In the event that the Fund designates a successor to any of

UBSTC’s obligations under this Agreement, UBSTC shall, at the direction and expense of the Fund, transfer to such successor all relevant books, records and other data established or maintained by UBSTC hereunder including, a certified list of the shareholders of the Fund with name, address, and if provided, taxpayer identification or Social Security number, and a complete record of the account of each shareholder. To the extent that UBSTC incurs expenses related to a transfer of responsibilities to a successor, other than expenses involved in UBSTC’s providing the Fund’s books and records to the successors. UBSTC shall be entitled to be reimbursed for such extraordinary expenses.

Any termination effected pursuant to this paragraph shall not affect the rights and obligations of the parties under Section 9 hereof.

Notwithstanding the foregoing, this Agreement shall terminate with respect to the Fund upon the liquidation merger into another entity, other dissolution of the Fund or upon the Fund’s ceasing to be a registered closed-end investment company under the 1940 Act.

By:

By:

President

Digitally signed by ▇▇▇▇▇▇ ▇▇▇▇▇▇ (43145150)

Date: 2021.05.13 16:24:49 -04’00’

Name

Position

Services Provided on an Ongoing Basis by UBSTC to the Fund, if Applicable.

Establish and maintain proper shareholder registrations:

Prepare and certify stockholder lists in conjunction with proxy solicitations:

Countersign share certificates;

Prepare and mail to shareholders confirmation of activity;

Provide customer liaison staff for on-line inquiry response;

Provide periodic shareholder lists and related statistics to the Fund:

Prepare periodic mailing of year-end tax information: and

Perform other shareholder services as may be mutually agreed upon by the parties to this Agreement in writing from time to time.

Services Provided by UBSTC under Oral Instructions or Written Instructions of the Fund.

Accept, post and perform shareholder transfers in accordance with applicable laws;

Pay dividends and other distributions and effect reinvestments:

Solicit and tabulate proxies; and

Issue and cancel certificates.

Communications to Shareholders. Pursuant to timely written instructions. UBSTC shall mail all communications by the Fund to its shareholders, including:

Reports to shareholders,

Confirmations of transfers of Fund shares;

Monthly or quarterly statements;

Dividend, distribution, and reinvestment notices.

Proxy material; and

Tax form information.

Records:. UBSTC shall maintain records of the accounts for each shareholder showing the following information:

Name, address and United States Tax Identification or Social Security Number;

Number and class of shares held and number and class of shares for which certificates, if any, have been issued, including certificate numbers and denominations;

Historical information regarding the account of each shareholder, including dividends and distributions reinvested and paid and the transfer date for all transactions in a shareholder’s account;

Any stop or restraining order placed against a shareholder’s account;

Any correspondence relating to the current maintenance of a shareholder’s account;

Information with respect to withholdings; and

Any information required in order for the transfer agent to perform any calculations contemplated or required by this Agreement.

Shareholder Inspection of Stock Records. Upon requests from Fund shareholders to inspect stock records, UBSTC will notify the Fund and require instructions granting or denying such request prior to taking any action. Unless UBSTC has acted contrary to the Fund’s instructions, the Fund agrees to release UBSTC from any liability for refusal of permission for a particular shareholder to inspect the Fund’s shareholder records.

Incidental Services. UBSTC will provide other incidental transfer agency, registrar, dividend disbursing agent, and shareholder servicing agency services as contemplated in the Prospectus.