Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 152

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 152
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, in the opinion of the Manager, to other obligations in which MUE may invest.

MUE may invest up to 20% of its managed assets in securities that are rated below investment grade, which are securities rated at the time of purchase Ba or
below by Moody’s, BB or below by S&P or Fitch, or securities determined by the Manager to be of comparable quality. Below investment grade quality is regarded as predominantly speculative with respect to the issuer’s capacity to pay
interest and repay principal. Such securities commonly are referred to as “high yield” or “junk” bonds.

The foregoing credit
quality policies apply only at the time a security is purchased, and MUE is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or
sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at

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which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that MUE disposes of a portfolio security subsequent to its being
downgraded, MUE may experience a greater risk of loss than if such security had been sold prior to such downgrade.

MUE may also purchase Municipal Bonds
that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain
financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce MUE’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the
common shares. MUE may purchase insured bonds and may purchase insurance for bonds in its portfolio.

MUE may invest in certain tax exempt securities
classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit
non-governmental entities) that may subject certain investors in MUE to an alternative minimum tax. The percentage of MUE’s total assets invested in PABs will vary from time to time. MUE has not
established any limit on the percentage of its portfolio that may be invested in Municipal Bonds subject to the federal alternative minimum tax provisions of federal tax law, and MUE expects that a portion of the income