Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 150

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 150
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 may be presented as loans of BFK in BFK’s financial statements even if there is no recourse to BFK’s assets.

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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 sponsor and/or provide liquidity support to TOB Trusts increases the risk associated with TOB Floaters. This in turn may reduce the desirability of TOB
Floaters as investments, which could impair the viability or availability of TOB Trusts.

Rule
18f-4 under the 1940 Act permits BFK to enter into TOB Trust transactions, reverse repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on the
issuance of senior securities in Section 18 of the 1940 Act, provided that BFK either (i) complies with the 300% asset coverage ratio applicable to senior securities representing indebtedness with respect to such transactions and any other
borrowings in the aggregate, or (ii) treats such transactions as derivatives transactions under Rule 18f-4. Future regulatory requirements or SEC guidance may necessitate more onerous contractual or
regulatory requirements, which may increase the costs or reduce the degree of potential economic benefits of TOB Trust transactions or limit BFK’s ability to enter into or manage TOB Trust transactions.

Lending of Securities

See “The
Acquiring Fund’s Investments—Lending of Securities” for a discussion of the securities lending arrangements applicable to BFK.

MUE’s Investment Objective and Policies

MUE’s investment objective is to provide stockholders with current income exempt from federal income taxes. There can be no assurance that MUE’s
investment objective will be realized. MUE’s investment objective may not be changed without the approval of the holders of a majority of MUE’s outstanding common shares and the outstanding preferred shares, including the variable rate
muni term preferred shares (“VMTP Shares”), voting together as a single class, and