Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 129

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 129
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 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 which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that BLE disposes of a portfolio security
subsequent to its being downgraded, BLE may experience a greater risk of loss than if such security had been sold prior to such downgrade.

BLE may also invest in securities of other open- or closed-end investment companies that invest
primarily in Municipal Bonds of the types in which BLE may invest directly and in tax-exempt preferred shares that pay dividends that are exempt from regular federal income tax. In addition, BLE may purchase
Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of

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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 BLE’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares. BLE may purchase insured bonds and may
purchase insurance for bonds in its portfolio.

BLE may invest in certain tax exempt securities classified as “private activity
bonds” (or industrial development bonds, under pre-1986 law) (in general, bonds that benefit non-governmental entities) that may subject certain investors in BLE
to an alternative minimum tax. The percentage of BLE’s total assets invested in private activity bonds will vary from time to time. BLE has not established any limit on the percentage of its portfolio that may be invested in Municipal Bonds
subject to the alternative minimum tax provisions of federal tax law, and BLE expects that a portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable
investment for investors who are subject to the federal alternative minimum tax or who would become subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be provided from BLE with that from comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable
investments, in light of each such investor’s tax position. Special considerations may apply to corporate investors.

The average
maturity of BLE’s portfolio securities varies from time to