Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 134

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 134
---
 and will be subject to an increased interest rate based on number of days the loan is
outstanding.

BLE may invest in a TOB Trust on either a non-recourse or recourse basis. When BLE
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 BLE 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 BLE is required to reimburse the TOBs Liquidity Provider the amount of any Liquidation Shortfall. As a result, if BLE invests in a recourse TOB Trust, BLE 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 BLE that are deposited into a TOB Trust are investments of BLE and are presented on BLE’s
Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust are presented as liabilities in BLE’s Statement of Assets and Liabilities. Interest income from the underlying Municipal Bonds is recorded by BLE 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 BLE. In addition, under accounting rules, loans made to a TOB Trust
sponsored by BLE may be presented as loans of BLE in BLE’s financial statements even if there is no recourse to BLE’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,