Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 186

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 186
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 an agreed upon price, date and interest
payment. In accordance with Rule 18f-4 under the 1940 Act, when MVT engages in reverse repurchase agreements and similar financing transactions, MVT may either (i) maintain asset coverage of at least 300%
with respect to such transactions and any other borrowings in the aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such
transactions. Reverse repurchase agreements involve the risk that the market value of the securities acquired in connection with the reverse repurchase agreement may decline below the price of the securities MVT has sold but is obligated to
repurchase. Also, reverse repurchase agreements involve the risk that the market value of the securities retained in lieu of sale by MVT in connection with the reverse repurchase agreement may decline in price.

If the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or
receiver may receive an extension of time to determine whether to enforce MVT’s obligation to repurchase the securities and MVT’s use of the proceeds of the reverse repurchase agreement may effectively be

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restricted pending such decision. Also, MVT would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the securities subject to
such agreement.

MVT also may effect simultaneous purchase and sale transactions that are known as “sale-buybacks.” A
sale-buyback is similar to a reverse repurchase agreement, except that in a sale-buyback, the counterparty that purchases the security is entitled to receive any principal or interest payments made on the underlying security pending settlement of
MVT’s repurchase of the underlying security.

Derivatives.MVT may enter into derivative transactions that have
leverage embedded in them. Derivative transactions that MVT may enter into and the risks associated with them are described elsewhere and are also referred to as “Strategic Transactions.” MVT cannot assure you that investments in
derivative transactions that have leverage embedded in them will result in a higher return on its common shares. Under Rule 18f-4 under the 1940 Act, among other things, MVT must either use derivatives in a
limited manner or comply with an outer limit on fund leverage risk based on value-at-risk.

Temporary Borrowings.MVT may also borrow money as a temporary measure for extraordinary or emergency purposes, including the payment
of dividends and