Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 179

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 179
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ations under a contract, which would also entail counterparty credit risk.

Leverage

MVT currently leverages its assets through the use of VMTP Shares and investments in TOB Residuals. MVT currently does not intend to borrow
money or issue debt securities. MVT is permitted to borrow money (including by investing in TOB Residuals) or 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, MVT 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 MVT’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 MVT’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 MVT’s investment portfolio, leverage will decrease or increase, as the case may be, the NAV per common share to a greater extent than if MVT did not utilize leverage. A reduction in MVT’s NAV may
cause a reduction in the market price of its shares. During periods in which MVT is using leverage, the fee paid to the Investment Advisor for advisory services will be higher than if MVT did not use leverage, because the fees paid will be
calculated on the basis of MVT’s Managed Assets, which includes the proceeds from leverage. MVT’s leveraging strategy may not be successful.

Certain types of leverage MVT may use may result in MVT being subject to covenants relating to asset coverage and portfolio composition
requirements. MVT may be subject to certain restrictions on investments imposed