Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 146

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 146
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 to the market, to reflect their true value. Any capital appreciation realized by BFK will generally result in capital gain distributions subject to federal capital gains taxation.

BFK ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, BFK may realize
taxable capital gains.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal
income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by BFK.

Description of Municipal Bonds

See
“The Acquiring Fund’s Investments – Description of Municipal Bonds” for additional information regarding the types of municipal bonds in which MHD invests.

Tender Option Bond Transactions

BFK currently leverages its assets through the use of TOB Residuals, which are derivative interests in municipal bonds. The TOB Residuals in
which BFK will invest pay interest or income that, in the opinion of counsel to the

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issuer of such TOB Residuals, is exempt from regular U.S. federal income tax. No independent investigation will be made to confirm
the tax-exempt status of the interest or income paid by TOB Residuals held by BFK. Although volatile, TOB Residuals typically offer the potential for yields exceeding the yields available on fixed
rate municipal bonds with comparable credit quality.

TOB Residuals represent beneficial interests in a TOB Trust formed for the purpose
of holding municipal bonds contributed by one or more funds. A TOB Trust typically issues two classes of beneficial interests: short-term floating rate interests (“”), which are sold to third party investors, and TOB
Residuals, which are generally issued to the fund(s) that transferred municipal bonds to the TOB Trust. BFK may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from the municipal bonds held by the
TOB Trust and are enhanced with a liquidity support arrangement from a third party TOBs Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). BFK, as a holder of TOB Residuals, is paid the
residual cash flow from the TOB Trust after payment of TOB Trust expenses and interest on the TOB Floaters. BFK contributes municipal bonds to the TOB Trust and is paid the cash received by the TOB Trust