Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 141

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 141
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 a
remarketing agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the TOBs Liquidity Provider to purchase the tendered TOB Floaters. Any loans made by the TOBs Liquidity Provider will be secured by the purchased TOB
Floaters held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

BYM may
invest in a TOB Trust on either a non-recourse or recourse basis. When BYM 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 BYM 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 BYM is required to reimburse the TOBs
Liquidity Provider the amount of any Liquidation Shortfall. As a result, if BYM invests in a recourse TOB Trust, BYM 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 BYM that are deposited into a TOB Trust are investments of BYM and are presented on BYM’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust are presented as liabilities in BYM’s Statement of Assets and
Liabilities. Interest income from the underlying Municipal Bonds is recorded by BYM on an accrual basis. Interest expense incurred on the TOB Floaters and other expenses related to

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remarketing, administration, trustee and other services to a TOB Trust are reported as expenses of BYM. In addition, under accounting rules, loans made to a TOB Trust sponsored by BYM may be
presented as loans of BYM in BYM’s financial statements even if there is no recourse to BYM’s assets.

For TOB Floaters,
generally, the interest rate earned will be based upon the market rates for municipal bonds with maturities