Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 49

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 49
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 and
principal payments.

General Obligation Bonds. General obligation
bonds are backed by the issuer’s full faith and credit and taxing authority for the payment of principal and interest. The taxing
authority of any governmental entity may be limited, however, by provisions of its state constitution or laws, and an entity’s creditworthiness
will depend on many factors, including potential erosion of its tax base due to population declines, natural disasters, declines in the
state’s industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,
state legislative proposals or voter initiatives to limit ad valorem real property taxes (i.e., taxes based upon an assessed value of
the property) and the extent to which the entity relies on federal or state aid, access to capital markets or other factors beyond the
state’s or entity’s control. Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment
of interest and the repayment of principal when due is affected by the issuer’s maintenance of its tax base.

Revenue Bonds. Revenue bonds are payable
only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise
tax or other specific revenue sources such as payments from the user of the facility being financed. Accordingly, the timely payment of
interest and the repayment of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic
viability of such facility or such revenue source.

Private Activity Bonds. Private activity
bonds are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass
transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local
facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction,
equipping, repair or improvement of privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the
current U.S. federal income tax laws place substantial limitations on the size of such issues.

Private activity bonds are secured primarily by
revenues derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a parent company or
otherwise secured. Private activity bonds generally are not secured by a pledge of the taxing power of the issuer of such bonds. Therefore,
an investor should be aware that repayment of such bonds generally depends on the revenues of