Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 157

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 157
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 maintain a portion of its assets in cash or high-grade securities as a reserve against interest or principal payments and expenses.
The Acquiring Fund expects that any credit facility would have customary covenant, negative covenant and default provisions. There can be no assurance that the Acquiring Fund will enter into an agreement for a credit facility, or one on terms and
conditions representative of the foregoing, or that additional material terms will not apply. In addition, if entered into, a credit facility may in the future be replaced or refinanced by one or more credit facilities having substantially different
terms or by the issuance of preferred shares.

84

Derivatives

The Acquiring Fund may enter into derivative transactions that have leverage embedded in them. Derivative transactions that the
Acquiring Fund may enter into and the risks associated with them are described elsewhere and are also referred to as “.” The Acquiring Fund 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, the Acquiring Fund 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

The
Acquiring Fund may also borrow money as a temporary measure for extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely dispositions of Acquiring
Fund securities.

Investment Restrictions

Each Fund has adopted certain investment restrictions that are “fundamental,” meaning such investment restrictions
cannot be changed without approval by holders of a “majority of the Fund’s outstanding voting securities” as defined in the 1940 Act. As defined in the 1940 Act, this phrase means the vote of (1) 67% or more of the voting
securities present at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy, or (2) more than 50% of the outstanding voting securities, whichever is less. Each Fund has also adopted
certain non-fundamental investment restrictions. The investment restrictions of the Funds are similar, although there are some differences, and are set forth in to this Joint Proxy
Statement/Prospectus.

Each Fund’s VRDP Shares or VMTP Shares, as applicable, are assigned long-term ratings by
Moody’s and Fitch. In order to maintain the required ratings, each Fund is required to