Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 19

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 19
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B Issuer are treated as investments of
the Fund, and are presented in the Fund’s Schedule of Investments. Outstanding TOB Floaters issued by a TOB Issuer are presented
as a liability at their face value as “Payable for Floating Rate Note Obligations” in the Fund’s Statement of Assets
and Liabilities. The face value of the TOB Floaters approximates the fair value of the floating rate notes. Interest income from the Underlying
Securities is recorded by the Fund on an accrual basis. Interest expense incurred on the 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 June 30, 2025, 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 |
| $319,567,535                      |                $240,675,000 |

During the year ended June 30, 2025, 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     |
| $241,111,986               | 3.61%                     |

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