Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 175

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 175
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 but not limited to, OTC options, forward currency transactions, swap transactions, repurchase and reverse repurchase agreements and the purchase and sale of bonds and other fixed-income
securities, it must rely on the creditworthiness of its counterparties under such transactions. In certain instances, the credit risk of a counterparty is increased by the lack of a central clearing house for certain transactions, including certain
swap contracts. In the event of the insolvency of a counterparty, MVT may not be able to recover its assets, in full or at all, during the insolvency process. Counterparties to investments may have no obligation to make markets in such investments
and may have the ability to apply essentially discretionary margin and credit requirements. Similarly, MVT will be subject to the risk of bankruptcy of, or the inability or refusal to perform with respect to such investments by, the counterparties
with which it deals. The Investment Advisor will seek to minimize MVT’s exposure to counterparty risk by entering into such transactions with counterparties the Investment Advisor believes to be creditworthy at the time it enters into the
transaction. Certain option transactions and Strategic Transactions may require MVT to provide collateral to secure its performance obligations under a contract, which would also entail counterparty credit risk.

Leverage

MVT currently leverages its
assets through the use of VMTP Shares and investments in TOB Residuals. MVT currently does not intend to borrow money or issue debt securities. MVT is permitted to borrow money (including by investing in TOB Residuals) or issue debt securities in an
amount up to 33 1/3% of its Managed Assets (50% of its net assets), issue preferred shares in an amount up to 50% of its Managed Assets (100% of its net assets) and enter into derivative instruments with leverage embedded in them in a limited manner
or subject to a limit on leverage risk calculated based on value-at-risk, as required by Rule 18f-4 under the
1940 Act. Although it has no present intention to do so, MVT reserves the right to borrow money from banks or other financial institutions, or issue debt securities, in the future if it believes that market conditions would be conducive to the
successful implementation of a leveraging strategy through borrowing money or issuing debt securities. Any such leveraging will not be fully achieved until the proceeds resulting from the use of leverage have been invested in accordance with
MVT’s investment objective and policies.

The use of leverage