Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 174

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 174
---
 perform with respect to such investments by, the counterparties
with which it deals. The Investment Advisor will seek to minimize MVT’s exposure to counterparty risk by entering into such transactions with counterparties the Investment Advisor believes to be creditworthy at the time it enters into the
transaction. Certain option transactions and Strategic Transactions may require MVT to provide collateral to secure its performance obligations under a contract, which would also entail counterparty credit risk.

Leverage

MVT currently
leverages its assets through the use of VMTP Shares and investments in TOB Residuals. MVT currently does not intend to borrow money or issue debt securities. MVT is permitted to 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, 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