Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 238

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 238
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 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, MVF 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

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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 MVF’s investment objective and policies.

The use of leverage can create risks. When leverage is
employed, the NAV and market price of the common shares and the yield to holders of common shares will be more volatile than if leverage were not used. Changes in the value of MVF’s portfolio, including securities bought with the proceeds of
leverage, will be borne entirely by the holders of common shares. If there is a net decrease or increase in the value of MVF’s investment portfolio, leverage will decrease or increase, as the case may be, the NAV per common share to a greater
extent than if MVF did not utilize leverage. A reduction in MVF’s NAV may cause a reduction in the market price of its shares. During periods in which MVF is using leverage, the fee paid to the Investment Advisor for advisory services will be
higher than if MVF did not use leverage, because the fees paid will be calculated on the basis of MVF’s net assets, which includes the proceeds from leverage. MVF’s leveraging strategy may not be successful.

Certain types of leverage MVF may use may result in MVF being subject to covenants relating to asset coverage and portfolio composition
requirements. MVF 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 MVF. The
terms of any borrowings or rating agency guidelines may impose asset coverage or portfolio composition requirements that are more stringent