Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 226

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 226
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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, 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

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imposed by the 1940 Act. The Investment Advisor does not believe