Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 172

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 172
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, MVT 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 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 MVT’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 MVT’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 MVT’s investment portfolio, leverage will decrease or increase, as the case may be, the NAV per common share to a greater extent than if MVT did not utilize leverage. A reduction in
MVT’s NAV may cause a reduction in the market price of its shares. During periods in which MVT is using leverage, the fee paid to the Investment Advisor for advisory services will be higher than if MVT did not use 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,

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