Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 205

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 205
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 credit facility would contain covenants that, among other things, likely would limit MIY’s ability to pay distributions in certain circumstances,
incur additional debt, change certain of its investment policies and engage in certain transactions, including mergers and consolidations, and require asset coverage ratios in addition to those required by the 1940 Act. MIY may be required to pledge
its assets and to maintain a portion of its assets in cash or high-grade securities as a reserve against interest or principal payments and expenses. MIY expects that any credit facility would have customary covenant, negative covenant and default
provisions. There can be no assurance that MIY 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.

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

MVF’s Investment Objective and Policies

MVF’s investment objective is to provide stockholders with as high a level of current income exempt from federal income
taxes as is consistent with its investment policies and prudent investment management. MVF’s investment policies provide that it seeks to achieve its investment objective by investing, as a fundamental policy, at least 80% of an aggregate of
MVF’s net assets (including proceeds from the issuance of preferred

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stock), and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of states, territories and possessions of the United States and
their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of