Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 175

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 175
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 leverage, because the fees paid will be calculated on the basis of MVT’s Managed Assets, which includes the proceeds from leverage. MVT’s leveraging strategy may not be
successful.

Certain types of leverage MVT may use may result in MVT being subject to covenants relating to asset coverage and portfolio
composition requirements. MVT may be subject to certain restrictions on investments imposed by one or more lenders or by guidelines of one or more rating agencies, which may issue ratings for any short-term debt securities or preferred shares issued
by MVT. The terms of any borrowings or rating agency guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the 1940 Act. The Investment Advisor does not believe that these covenants
or guidelines will impede it from managing MVT’s portfolio in accordance with its investment objective and policies if MVT were to utilize leverage.

Under the 1940 Act, MVT is not permitted to issue senior securities if, immediately after the issuance of such senior securities, MVT would
have an asset coverage ratio (as defined in the 1940 Act) of less than 300% with respect to senior securities representing indebtedness (i.e., for every dollar of indebtedness outstanding, MVT is required to have at least three dollars of
assets) or less than 200% with respect to senior securities representing preferred shares (i.e., for every dollar of preferred shares outstanding, MVT is required to have at least two dollars of assets). The 1940 Act

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also provides that MVT may not declare distributions, or purchase its stock (including through tender offers) if, immediately after doing so, it will have an asset coverage ratio of less than
300% or 200%, as applicable. Under the 1940 Act, certain short-term borrowings (such as for cash management purposes) are not subject to these limitations if (i) repaid within 60 days, (ii) not extended or renewed, and (iii) not
in excess of 5% of the total assets of MVT.

Preferred Shares.MVT has leveraged its portfolio by issuing VMTP Shares. Under the
1940 Act, MVT is not permitted to issue preferred shares if, immediately after such issuance, the liquidation value of MVT’s outstanding preferred shares exceeds 50% of its assets (including the proceeds from the issuance) less liabilities
other than borrowings (i.e., the value of MVT’s assets must be