Company: RFMZ
Filing Date: 2025-03-07
Form Type: N-CSRS
Source: 0001398344-25-005064
Chunk: 8

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 8
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 appropriate; however,
actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the
value the Fund ultimately realizes upon sale of the securities. The financial statements have been prepared as of the close of the New
York Stock Exchange (“NYSE”) on December 31, 2024.

The Fund invests in CEFs, each of which has its
own investment risks. Those risks can affect the value of the Fund's investments and therefore the value of the Fund's shares. To the
extent that the Fund invests more of its assets in one CEF than in another, the Fund will have greater exposure to the risks of that CEF.

RiverNorth Flexible Municipal Income Fund II, Inc.

Security Valuation: The Fund’s investments
are generally valued at their fair value using market quotations. If a market value quotation is unavailable a security may be valued
at its estimated fair value as described in Note 3.

Security Transactions and Investment Income:
The Fund follows industry practice and records securities transactions on the trade date basis. The specific identification method is
used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend
date, and interest income and expenses are recorded on an accrual basis. Discounts and premiums on securities purchased are amortized
or accreted using the effective interest method over the life of the respective securities.

Federal Income Taxes: The Fund makes no
provision for federal income tax. The Fund intends to qualify each year as a “regulated investment company” ("RIC")
under Subchapter M of the Internal Revenue Code of 1986, as amended (the "IRC"). In order to qualify as a RIC, the Fund must,
among other things, satisfy income, asset diversification and distribution requirements. As long as it so qualifies, the Fund will not
be subject to U.S. federal income tax to the extent that it distributes annually its investment company taxable income and its “net
capital gain”. If the Fund retains any investment company taxable income or net capital gain, it will be subject to U.S. federal
income tax on the retained amount at regular corporate tax rates. In addition, if the Fund fails to qualify as a RIC for any taxable year,
it will be subject to U.S. federal income tax on all of its income and gains at regular corporate tax rates.

The Fund recognizes the tax benefits of uncertain
tax positions only where the position is “more likely than not