UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~November~~June 28, ~~2017~~2018

United Development Funding III, L.P.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

000-53159

20-3269195

(State or other jurisdiction of incorporation
or organization)

(Commission File Number)

(I.R.S. Employer

Identification No.)

1301 Municipal Way, Suite 200, Grapevine, Texas 76051

76051

(Address of principal executive offices)

(Zip Code)

(214) 370-8960

(Registrant’s telephone number, including area code)

~~1301 Municipal Way, Suite 100, Grapevine, Texas~~None

76051

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨ o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨o

Item 78.01 ~~Regulation~~Other ~~FD Disclosure~~Events.

On ~~November~~June 28, ~~2017~~2018, ~~United~~ ~~Development Funding, L.P.,~~ United Development Funding ~~II, L.P., United Development Funding~~ III, L.P., ~~United Development Funding IV, United Development Funding Income Fund V, United Mortgage Trust, United Development Funding Land Opportunity Fund, L.P.,~~ and United Development Funding ~~Land~~IV ~~Opportunity Fund Investors, L.L.C.~~ (collectively, ~~the~~ “~~Plaintiffs” or “~~UDF ~~Funds~~”) ~~filed~~entered into a ~~lawsuit~~settlement in with the ~~County~~U.S. ~~Court~~Securities ofand ~~Dallas~~Exchange ~~County,~~Commission ~~Texas against J. Kyle Bass~~ (the “~~Bass~~SEC”) ~~and~~of ~~Hayman Capital~~all ~~Management,~~outstanding ~~L.P.,~~issues ~~Hayman Offshore Management, Inc., Hayman Capital Master Fund, L.P., Hayman Capital Partners, L.P., Hayman Capital Offshore Partners, L.P.,~~ and ~~Hayman~~the ~~Investments,~~complete ~~LLC,~~resolution ~~all~~ of ~~which are hedge fund entities believed to be under~~ the ~~control~~ ofSEC’s ~~Bass~~investigation ~~(collectively~~into ~~with~~possible ~~Bass,~~violations ~~the~~of ~~“Defendants”~~certain orprovisions ~~the “Bass Entities”). A copy~~ of the ~~Plaintiffs’ complaint~~Securities ~~can~~Act beof ~~found~~1933 atand the ~~County~~Securities ~~Court~~Exchange Act of ~~Dallas County, Texas website (https://courtsportal~~1934.~~dallascounty.org/DALLASPROD), using the Case No. CC-17-06253-B.~~

~~The~~As ~~lawsuit~~previously ~~alleges~~disclosed ~~claims~~by ~~against Defendants for business disparagement~~UDF, ~~interference~~the ~~with~~SEC ~~contract,~~had ~~interference~~been ~~with~~conducting ~~prospective~~an ~~economic~~investigation ~~advantage and~~since ~~civil~~April ~~conspiracy. In general~~2014, ~~the~~which ~~UDF~~was ~~Funds~~followed ~~allege~~by ~~that~~“Wells ~~the~~Notices” Bass Entities made false and disparaging statements – first anonymously on a third-party website and later in their own name on a proprietary website – about the business of the UDF Funds in order to destroy the UDF Funds’ business. The UDF Funds further allege that the Bass Entities profited from the ~~resulting~~staff ~~damage to the business~~ of the ~~UDF~~SEC ~~Funds because the Bass Entities had, prior to the publication of the false statements, established a large short position~~ in ~~the~~September ~~UDF Funds~~2016.

The ~~UDF~~settlement ~~Funds allege~~includes ~~that~~ the ~~false~~filing ~~and~~of ~~disparaging~~a ~~statements~~complaint ~~include~~by ~~statements designed to convey that~~ the ~~UDF~~SEC ~~Funds~~and ~~were~~ a ~~Ponzi~~consent ~~scheme,~~judgment. ~~that~~Under the ~~UDF~~ ~~Funds~~consent ~~had~~judgment, noUDF ~~genuine~~and ~~ability~~certain toindividuals ~~carry~~(the on“Individuals”) associated ~~their~~with ~~business, that the~~ UDF ~~Funds’~~consent ~~insolvency~~to ~~would~~the ~~render~~entry ~~their~~of ~~shares~~orders ~~virtually worthless,~~enjoining ~~that~~them ~~the~~from ~~UDF~~future ~~Funds’~~violations ~~real~~of ~~estate~~certain ~~developments~~provisions ~~were~~of ~~not genuine developments, that~~ the ~~UDF~~federal ~~Funds’ largest~~securities ~~borrower~~laws ~~was~~(including ~~not~~misrepresentation anand ~~arm’s-length~~omissions, ~~borrower~~reporting and ~~was~~books ~~also insolvent,~~ and ~~that~~records ~~investor~~provisions). The ~~proceeds~~Individuals ~~were~~will ~~being~~also ~~misappropriated.~~collectively ~~The~~be ~~UDF~~subject ~~Funds~~to ~~allege~~disgorgement ~~that~~and ~~all~~pre-judgement interest of ~~these~~$7.2 ~~assertions~~million ~~were false~~ and ~~that,~~a inmonetary ~~truth,~~fine ~~the~~of $1.075 million. UDF ~~Funds~~and the ~~were~~Individuals aneither ~~family~~admit ofnor ~~successful~~deny ~~real estate~~the ~~investment~~allegations ~~funds~~of ~~engaged~~the incomplaint, ~~genuine~~and ~~real~~none ~~estate~~of ~~development with arm~~UDF’s~~-length~~ ~~borrowers~~executives ~~with~~will abe ~~long~~limited ~~track~~from continuing ~~record~~to ~~of real~~manage ~~estate~~UDF’s ~~development~~business.

~~The~~A ~~lawsuit~~copy ~~alleges that the UDF Funds suffered damage because the false statements~~ of ~~the Defendants caused, among other things, a sudden and severe loss of credit and reduction in capital that the~~ UDF ~~Funds relied on to carry on their business of lending to real estate developers~~’s ~~for~~press ~~use~~release inannouncing ~~land acquisition and single-family home developments. The Plaintiffs seek damages for~~ the ~~loss~~settlement ofis ~~income~~attached ~~that~~hereto ~~they suffered~~ as aExhibit ~~consequence,~~99.1 ~~as well as damages for various other injuries~~ and ~~other~~is ~~costs~~incorporated ~~caused~~ by ~~the~~reference ~~false statements~~herein. ~~However, no assurances can be given that the Plaintiffs will receive any damages as a result of the lawsuit, nor can any assurances be given regarding a timeframe for a resolution of the lawsuit.~~

~~SIGNATURE~~Item 9.01 Financial Statements and Exhibits.

~~Pursuant~~(d) ~~to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.~~Exhibits

	United Development Funding III, L.P.
	By:	UMTH Land Development, L.P.
		Its General Partner
		By:	UMT Services, Inc.
			Its General Partner
Dated: November 29, 2017			By:	/s/ Hollis M. Greenlaw
				Hollis M. Greenlaw
				President and Chief Executive Officer

99.1

Press Release of United Development Funding III, L.P. and United Development Funding IV dated July 3, 2018.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	United Development Funding III, L.P.

	By:	UMTH Land Development, L.P.
		Its General Partner

		By:	UMT Services, Inc.
			Its General Partner

Dated: July 3, 2018			By:	/s/ Hollis M. Greenlaw
				Hollis M. Greenlaw
				President and Chief Executive Officer

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