Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 157

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 157
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 invests in TOB Trusts on a non-recourse basis, and the TOBs Liquidity Provider is required to
make a payment under the liquidity facility, the TOBs Liquidity Provider will typically liquidate all or a portion of the municipal bonds held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility
proceeds (“Liquidation Shortfall”). If MUE invests in a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the TOBs Liquidity Provider pursuant to which MUE is required to reimburse the TOBs
Liquidity Provider the amount of any Liquidation Shortfall. As a result, if MUE invests in a recourse TOB Trust, MUE will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-Advised Funds participate in any such
TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB Trust.

Under accounting rules, Municipal
Bonds of MUE that are deposited into a TOB Trust are investments of MUE and are presented on MUE’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust are presented as liabilities in MUE’s Statement of Assets and
Liabilities. Interest income from the underlying Municipal Bonds is recorded by MUE on an accrual basis. Interest expense incurred on the TOB Floaters and other expenses related to remarketing, administration, trustee and other services to a TOB
Trust are reported as expenses of MUE. In addition, under accounting rules, loans made to a TOB Trust sponsored by MUE may be presented as loans of MUE in MUE’s financial statements even if there is no recourse to MUE’s assets.

For TOB Floaters, generally, the interest rate earned will be based upon the market rates for municipal bonds with maturities or remarketing
provisions that are comparable in duration to the periodic interval of the tender option. Since the tender option feature has a shorter term than the final maturity or first call date of the underlying municipal bonds deposited in the TOB Trust, the
holder of the TOB Floaters relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as well as the credit strength of that institution. The perceived reliability and creditworthiness, of many major
financial institutions, some of which

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sponsor and/or provide liquidity support to TOB Trust