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

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 25
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 to the segment and assess its performance, and has discrete
financial information available. The Fund’s Principal Financial Officer, acting together as the Fund’s CODM, has determined
that the Fund has operated as a single segment since inception. The CODM monitors the operating results of the Fund, as a whole, and the
Fund’s long-term strategic asset allocation is pre-determined in accordance with the terms of the related Prospectus, based on the
defined investment objectives and strategies that are executed by the Fund’s portfolio management team. The financial information,
in the form of the Fund’s holdings, total returns, expense ratios, and changes in net assets (i.e., changes in net assets resulting
from operations, subscriptions and redemptions) are used by the CODM to assess the Fund’s performance versus the Fund’s benchmark
and to make resource allocation decisions for the Fund’s segment, which is consistent with that presented within the Fund’s
financial statements. Segment assets are reflected on the Fund’s Statement of Assets and Liabilities as “Total Assets”
and significant segment expenses are listed on the Statement of Operations.

7. CREDIT AGREEMENT

On March 9, 2023, the Fund entered into a credit
agreement with BNP Paribas (“BNP Credit Agreement”). The BNP Credit Agreement permits the Fund to borrow funds that are collateralized
by assets held at BNP Paribas pursuant to the agreement. Under the terms of the BNP Credit Agreement, the Fund may borrow up to $15,000,000
bearing an interest rate of the Overnight Bank Funding Rate plus a fixed rate determined by the securities pledged as collateral. Any
unused portion of the BNP Credit Agreement is subject to a commitment fee of 0.50% of the unused portion of the facility until a utilization
of 80% or greater is met.

During the Fund’s utilization period during
the six months ended December 31, 2024, the Fund’s average borrowings and interest rate under the BNP Credit Agreement were $2,700,000
and 5.33%, respectively. At December 31, 2024, there was $2,700,000 outstanding on the credit facility.

RiverNorth Flexible Municipal Income Fund II, Inc.

8. TAX BASIS INFORMATION

Tax Basis of Distributions to Shareholders:
The character of distributions made during the period from net investment income or net realized gains may differ from its ultimate characterization
for federal income tax purposes. Also, due to the