Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 132

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 132
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 does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a derivatives transaction
under Rule 18f-4.

Call Rights. The Acquiring Fund may purchase
a MYI Municipal Bond issuer’s right to call all or a portion of such MYI Municipal Bond for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a mandatory tender for the
purchase of related MYI Municipal Bonds, subject to certain conditions. A Call Right that is not exercised prior to maturity of the related MYI Municipal Bond will expire without value. The economic effect of holding both the Call Right and the
related MYI Municipal Bond is identical to holding a MYI Municipal Bond as a non-callable security. Certain investments in such obligations may be illiquid.

70

Yields. Yields on MYI Municipal Bonds are dependent on a variety of
factors, including the general condition of the money market and of the MYI Municipal Bond market, the size of a particular offering, the financial condition of the issuer, the maturity of the obligation and the rating of the issue. The ability of
the Acquiring Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of the securities in which the Acquiring Fund invests to meet their obligations for the payment of interest and principal when due.
There are variations in the risks involved in holding MYI Municipal Bonds, both within a particular classification and between classifications, depending on numerous factors. Furthermore, the rights of owners of MYI Municipal Bonds and the
obligations of the issuer of such MYI Municipal Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights of creditors generally and to general equitable principles, which may limit the
enforcement of certain remedies.

“High Yield” or “Junk” Bonds. The Acquiring Fund may
invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase, subject to the Acquiring Fund’s other investment policies.
Information with respect to ratings assigned to tax-exempt obligations that the Acquiring Fund may purchase is set forth in— Ratings of Investments. MYI Municipal Bonds
of below investment grade quality (“Ba/BB” or below) are commonly known as “junk bonds.” Securities rated below investment grade are judged to have speculative characteristics with respect to their interest and principal
payments.