Company: RFMZ
Filing Date: 2025-03-07
Form Type: N-CSRS
Source: 0001398344-25-005064
Chunk: 14

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 14
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 TOB Floaters and other expenses related to remarketing,
administration and trustee services to a TOB Issuer are recognized as a component of “Interest expense and fees on Floating Rate
Note Obligations” in the Statement of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and
are amortized to "Interest expense and fees on floating rate note obligations" in the Statement of Operations.

At December 31, 2024, the aggregate value of the
Underlying Securities transferred to the TOB Issuer and the related liability for TOB Floaters was as follows:

| Underlying Securities Transferred 
 to TOB Issuers                    | Liability for Floating Rate 
            Note Obligations |
| $ 334,849,940                     |                $242,375,000 |

During the six months ended December 31, 2024,
the Fund’s average TOB Floaters outstanding and the daily weighted average interest rate, including fees, were as follows:

| Average Floating Rate Note 
 Obligations Outstanding    | Annualized Daily Weighted 
 Average Interest Rate     |
| $239,423,370               | 3.83%                     |

Other: Distributions received from investments
in securities that represent a return of capital or long-term capital gains are recorded as a reduction of the cost of investments or
as a realized gain, respectively.

RiverNorth Flexible Municipal Income Fund II, Inc.

3. SECURITIES VALUATION AND FAIR VALUE MEASUREMENTS

Fair value is defined as the price that the Fund
might reasonably expect to receive upon selling an investment in a timely transaction to an independent buyer in the principal or most
advantageous market of the investment. U.S. GAAP establishes a three-tier hierarchy to maximize the use of observable market data and
minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

Inputs refer broadly to the assumptions that market
participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular
valuation technique used to measure fair value including using such a pricing model and/or the risk inherent in the inputs to the valuation
technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would
use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable
inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions