Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 235

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 235
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 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.e., for every dollar of indebtedness outstanding, MVF is required to have at
least three dollars of assets) or less than 200% with respect to senior securities representing preferred shares (i.e., for every dollar of preferred shares outstanding, MVF is required to have at least two dollars of assets). The Investment
Company Act also provides that MVF may not declare distributions, or purchase its stock (including through tender offers) if, immediately after doing so, it will have an asset coverage ratio of less than 300% or 200%, as applicable. Under the 1940
Act, certain short-term borrowings (such as for cash management purposes) are not subject to these limitations if (i) repaid within 60 days, (ii) not extended or renewed, and (iii) not in excess of 5% of the total assets of MVF.

Preferred Shares.MVF has leveraged its portfolio by issuing VMTP Shares. Under the 1940 Act, MVF is not permitted to issue preferred
shares if, immediately after such issuance, the liquidation value of MVF’s outstanding preferred shares exceeds 50% of its assets (including the proceeds from the issuance) less liabilities other than borrowings (i.e., the