Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 168

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 168
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 rating agencies. In the event that MVT disposes of a portfolio
security subsequent to its being downgraded, MVT may experience a greater risk of loss than if such security had been sold prior to such downgrade.

MVT does not ordinarily invest more than 25% of its managed assets (taken at market value) in municipal obligations whose issuers are located
in the same state.

In addition, MVT may purchase MVT Municipal Bonds that are additionally secured by insurance, bank credit agreements
or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market
price paid for insured obligations may reduce MVT’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of MVT’s common shares. MVT may purchase insured bonds and may
purchase insurance for bonds in its portfolio.

MVT may invest in certain tax exempt securities classified as PABs (in general, bonds that
benefit non-governmental entities) that may subject certain investors in MVT to an alternative minimum tax. The percentage of MVT’s total assets invested in PABs will vary from time to time. MVT expects
that a portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable investment for investors who are subject to the federal alternative minimum tax or who would
become subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be provided from MVT with that from
comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax position. Special considerations may
apply to corporate investors.

The average maturity of MVT’s portfolio securities varies from time to time based upon an assessment
of economic and market conditions by the Investment Advisor. MVT’s portfolio at any given time may include long- term and intermediate-term MVT Municipal Bonds.

MVT’s stated expectation is that it will invest in MVT Municipal Bonds that, in the Investment Advisor’s opinion, are underrated
or undervalued. Underrated MVT Municipal Bonds are those whose ratings do not, in the opinion of the Investment Advisor, reflect their true higher creditworthiness. Undervalued MVT Municipal Bonds are bonds that, in the