Company: RFMZ
Filing Date: 2025-03-31
Form Type: N-2/A
Source: 0001398344-25-006257
Chunk: 9

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-31
Form: N-2/A
Chunk 9
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 also purchase and sell municipal market data rate locks (“MMD Rate Locks”). An MMD Rate Lock permits the                      
 Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular investment     
 or a portion of its portfolio as a duration management technique or to protect against any increase in the price of securities         
 to be purchased at a later date. By using an MMD Rate Lock, the Fund can create a synthetic long or short position, allowing           
 the Fund to select what the manager believes is an attractive part of the yield curve. The Fund will ordinarily use these transactions 
 as a hedge or for duration or risk management although it is permitted to enter into them to enhance income or gain or to increase     
 the Fund's yield, for example, during periods of steep interest rate yield curves (i.e., wide differences between short term           
 and long term interest rates). An MMD Rate Lock is a contract between the Fund and an MMD Rate Lock provider pursuant to which         
 the parties agree to make payments to each other on a notional amount, contingent upon whether the Municipal Market Data AAA           
 General Obligation Scale is above or below a specified level on the expiration date of the contract. For example, if the Fund          
 buys an MMD Rate Lock and the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration        
 date, the counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level, multiplied 
 by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above the specified level         
 on the expiration date, the Fund will make a payment to the counterparty equal to the actual level minus the specified level,          
 multiplied by the notional amount of the contract.                                                                                     
 In                                                                                                                                     
 addition to the foregoing principal investment strategies of the Fund, the Adviser also may allocate the Fund’s Managed                
 Assets among cash and short-term investments. See “Investment Policies and Techniques-Temporary Investments and Defensive              
 Position” in the SAI. There are no limits on the Fund’s portfolio turnover, and the Fund may buy and sell securities                   
 to take advantage of potential short-term trading opportunities without regard to length of time and when the Adviser or Subadviser    
 believes investment considerations warrant such action. High portfolio turnover may result in the realization of net short-term        
 capital gains by the Fund which, when distributed to Common Shareholders, will be taxable as ordinary income. In addition