Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 171

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 171
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 with
the clearing organization in the event of the default by the clearing organization or MVT’s clearing broker. Certain U.S. federal income tax requirements may limit MVT’s ability to engage in interest rate swaps. Distributions
attributable to transactions in interest rate swaps generally will be taxable as ordinary income to stockholders.

92

Counterparty Credit Standards. To the extent that MVT engages in
principal transactions, including, 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