Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 231

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 231
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 Act. Although it has no present intention to do so, MVF 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 MVF’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 MVF’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 MVF’s investment portfolio, leverage will decrease or increase, as the case may be, the NAV per common share to a greater extent than if MVF did not utilize leverage. A reduction in MVF’s NAV may cause
a reduction in the market price of its shares. During periods in which MVF is using leverage, the fee paid to the Investment Advisor for advisory services will be higher than if MVF did not use leverage, because the fees paid will be calculated on
the basis of MVF’s net assets, which includes the proceeds from leverage. MVF’s leveraging strategy may not be successful.

Certain types of leverage MVF may use may result in MVF being subject to covenants relating to asset coverage and portfolio composition
requirements. MVF 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 MVF. 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 MVF’s portfolio in accordance with its investment objective and policies if MVF were to utilize leverage.

Under the Investment Company Act, MVF is not permitted to issue senior securities if, immediately after the issuance of such senior
securities, MVF would have an asset coverage ratio (as defined in the 1940 Act) of less than 300% with respect to senior securities representing indebtedness (i