Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 134

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 134
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 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, 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 BLE 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 BLE either (i) complies
with the 300% asset coverage

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ratio with respect to such transactions and any other