Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 218

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 218
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’s credit quality policies apply only at the time a security is purchased, and MVF is not required to dispose of a security if a rating agency
downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Investment Advisor may consider such factors as the Investment Advisor’s
assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that MVF disposes of a portfolio security
subsequent to its being downgraded, MVF may experience a greater risk of loss than if such security had been sold prior to such downgrade.

MVF may also
purchase MVF Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the
insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce MVF’s income. The insurance feature does not guarantee the market value of the insured obligations
or the net asset value of the common stock. MVF may purchase insured bonds and may purchase insurance for bonds in its portfolio.

110

MVF may invest in certain tax exempt securities classified as PABs (in general, bonds that benefit non-governmental entities) that may subject certain investors in MVF to an alternative minimum tax. The percentage of MVF’s total assets invested in PABs will vary from time to time. MVF has not established any
limit on the percentage of its portfolio that may be invested in MVF Municipal Bonds subject to the federal alternative minimum tax provisions of federal tax law, and MVF expects that a portion of the income it produces will be includable in
alternative minimum taxable income.

MVF also may not invest more than 25% of its total assets (taken at market value at the time of each investment) in
MVF Municipal Bonds whose issuers are located in the same state.

The average maturity of MVF’s portfolio securities varies from time to time based
upon an assessment of economic and market conditions by the Investment Advisor. MVF’s portfolio at any given time may include both long-term, intermediate-term and short-term MVF Municipal Bonds.

MVF’s stated expectation is that it will invest in MVF Municipal Bonds that, in the Investment Advisor’s opinion, are underrated or undervalued