Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 63

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 63
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 and are subject to risks related to the issuer’s ability
to raise tax revenues and ability to maintain an adequate tax base. Revenue bonds are subject to the risk that the underlying facilities
may not generate sufficient income to pay expenses and interest costs, lack recourse to ensure payment, or might be subordinate to other
debtors. Municipal lease obligations and certificates of participation are subject to the added risk that the governmental lessee will
fail to appropriate funds to enable it to meet its payment obligations under the lease. Moral obligation bonds are generally issued by
special purpose public authorities of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds
becomes a moral commitment, but not a legal obligation, of the state or municipality. Municipalities and other public authorities issue
private activity bonds to finance development of facilities for use by a private enterprise, which is solely responsible for paying the
principal and interest on the bond.

| 58 | (888) 848-7569 | www.rivernorth.com |

RiverNorth Flexible Municipal Income Fund II, Inc.

Failure of Municipal Bonds to meet regulatory
requirements may cause the interest received by the Fund and distributed to shareholders to be taxable, which may apply retroactively
to the date of the issuance of the bond. Municipal bonds are also subject to interest rate, credit, and liquidity risk, which are discussed
generally under this Risks Factors section.

The COVID-19 pandemic significantly stressed the
financial resources of many municipalities and other issuers of municipal securities, which may impair their ability to meet their financial
obligations and may harm the value or liquidity of the Fund’s investments in municipal securities. In particular, responses by municipalities
to the COVID-19 pandemic caused disruptions in business activities. These and other effects of the COVID-19 pandemic, such as increased
unemployment levels, impacted tax and other revenues of municipalities and other issuers of municipal securities and the financial conditions
of such issuers. As a result, there is increased budgetary and financial pressure on municipalities and heightened risk of default or
other adverse credit or similar events for issuers of municipal securities, which would adversely impact the Fund’s investments.

State Specific and Industry Risk.While the Fund may not directly invest more than 25% of its Managed Assets in Municipal Bonds in any one industry or in any one state of origin, indirect investments through Underlying Funds might increase the Fund’s exposure to economic, political or regulatory occurrences affecting a particular state or industry.

Puerto Rico Municipal