Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 181

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 181
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 facilities having substantially different terms or by the issuance of preferred shares.

Reverse Repurchase Agreements.MVT may enter into reverse repurchase agreements with respect to its portfolio investments
subject to the investment restrictions set forth herein. Reverse repurchase agreements involve the sale of securities held by MVT with an agreement by MVT to repurchase the securities at an agreed upon price, date and interest payment. In accordance
with Rule 18f-4 under the 1940 Act, when MVT engages in reverse repurchase agreements and similar financing transactions, MVT may either (i) maintain asset coverage of at least 300% with respect to such
transactions and any other borrowings in the aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such transactions. Reverse
repurchase agreements involve the risk that the market value of the securities acquired in connection with the reverse repurchase agreement may decline below the price of the securities MVT has sold but is obligated to repurchase. Also, reverse
repurchase agreements involve the risk that the market value of the securities retained in lieu of sale by MVT in connection with the reverse repurchase agreement may decline in price.

If the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or
receiver may receive an extension of time to determine whether to enforce MVT’s obligation to repurchase the securities and MVT’s use of the proceeds of the reverse repurchase agreement may effectively be restricted pending such
decision. Also, MVT would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the securities subject to such agreement.

MVT also may effect simultaneous purchase and sale transactions that are known as “sale-buybacks.” A sale-buyback is similar to a
reverse repurchase agreement, except that in a sale-buyback, the counterparty that purchases the security is entitled to receive any principal or interest payments made on the underlying security pending settlement of MVT’s repurchase of the
underlying security.

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