Company: RFMZ
Filing Date: 2025-03-07
Form Type: N-CSRS
Source: 0001398344-25-005064
Chunk: 21

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 21
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 from liquidating
an unfavorable position, and the fund would remain obligated to meet margin requirements until the position is closed. In addition, a
fund could be exposed to risk if the counterparties to the contracts are unable to meet the terms of their contracts. With exchange-traded
futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse,
as counterparty to all exchange-traded futures, guarantees the futures against default. The Fund is party to certain enforceable master
netting arrangements, which provide for the right of offset under certain circumstances, such as the event of default.

When a purchase or sale of a futures contract
is made by a fund, the fund is required to deposit with its custodian (or broker, if legally permitted) a specified amount of liquid assets
(“initial margin”). The margin required for a futures contract is set by the exchange on which the contract is traded and
may be modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the
futures contract that is returned to the Fund upon termination of the contract, assuming all contractual obligations have been satisfied.
These amounts are included in Deposit with broker for futures contracts on the Statement of Assets and Liabilities. Each day the Fund
may pay or receive cash, called “variation margin,” equal to the daily change in value of the futures contract. Such payments
or receipts are recorded for financial statement purposes as unrealized gains or losses by the Fund. Variation margin does not represent
a borrowing or loan by the Fund but instead is a settlement between the Fund and the broker of the amount one would owe the other if the
futures contract expired. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was closed.

Derivative Instruments: The following tables
disclose the amounts related to the Fund’s use of derivative instruments.

| 30 | (888) 848-7569 | www.rivernorth.com |

RiverNorth Flexible Municipal Income Fund II, Inc.

The effect of derivatives instruments on the Fund's Statement of Assets
and Liabilities as of December 31, 2024:

| Risk Exposure Statement                 |     | Asset Derivatives                            
 Statement of Assets and Liabilities Location |     | Fair Value |           |
|:----------------------------------------|:----|