Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 202

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 202
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 various types of notes described above as a group represent the major portion of the
tax-exempt note market, other types of notes are available in the marketplace and MIY may invest in such other types of notes to the extent permitted under its investment objective, policies and limitations.
Such notes may be issued for different purposes and may be secured differently from those mentioned above.

Leverage

MIY currently leverages its assets through the use of preferred shares and residual interest municipal TOBs. MIY currently does not intend to
borrow money or issue debt securities. Although it has no present intention to do so, MIY 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 MIY’s investment objective and policies. MIY is authorized to borrow money in amounts of up to 5% of the value of its total assets at the time of such borrowings; provided, however, that MIY is authorized to borrow moneys in
amounts of up to 33 1/3% of the value

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of its total assets at the time of such borrowings to finance the repurchase of its own
common shares pursuant to tender offers or otherwise to redeem or repurchase preferred shares.

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 MIY’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 MIY’s investment portfolio, leverage will decrease or increase, as the case may be, the NAV per common share to
a greater extent than if MIY did not utilize leverage. A reduction in MIY’s NAV may cause a reduction in the market price of its shares. During periods in which MIY is using leverage, the fee paid to the Investment Advisor for advisory services
will be higher than if MIY did not use leverage, because the fees paid will be calculated on the basis of MIY’s Net Assets, which includes the proceeds from leverage. MIY’s leveraging strategy may not be