Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 185

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 185
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 bonds) notwithstanding the limitation on the
issuance of senior securities in Section 18 of the 1940 Act, provided that MVT either (i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the aggregate, or (ii) treats such
transactions as derivatives transactions under Rule 18f-4.

Future regulatory requirements or SEC
guidance may necessitate more onerous contractual or regulatory requirements, which may increase the costs or reduce the degree of potential economic benefits of TOB Trust transactions or limit MVT’s ability to enter into or manage TOB Trust
transactions.

See “Risk Factors and Special Considerations— General Risks of Investing in the Acquiring Fund—Tender
Option Bond Risk” for a description of the risks involved with a TOB issuer.

Credit Facility.MVT is permitted
to leverage its portfolio by entering into one or more credit facilities. If MVT enters into a credit facility, MVT may be required to prepay outstanding amounts or incur a penalty rate of interest upon the occurrence of certain events of default.
MVT would also likely have to indemnify the lenders under the credit facility against liabilities they may incur in connection therewith. In addition, MVT expects that any credit facility would contain covenants that, among other things, likely
would limit MVT’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. MVT 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. MVT expects
that any credit facility would have customary covenant, negative covenant and default provisions. There can be no assurance that MVT 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.

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