Company: BLE
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198164
Chunk: 155

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 155
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B Floaters may have first priority on the cash flow from the municipal bonds held by the TOB Trust and are enhanced with a liquidity support arrangement
provided by a TOB Liquidity Provider (defined above) which allows holders to tender their position at par (plus accrued interest). MUE, as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. MUE contributes municipal bonds
to the TOB Trust and is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less certain transaction costs, and typically will invest the cash to purchase additional municipal bonds or other investments permitted by its
investment policies. If MUE ever purchases all or a portion of the TOB Floaters sold by the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the TOB Trust in exchange for a proportionate amount
of the municipal bonds owned by the TOB Trust.

Other registered investment companies advised by the Investment Advisor or its affiliates
(“BlackRock-Advised Funds”) may contribute municipal bonds to a TOB Trust into which MUE has contributed municipal bonds. If multiple BlackRock-Advised Funds participate in the same TOB Trust, the economic rights and obligations under
the TOB Residual will generally be shared among the funds ratably in proportion to their participation in the TOB Trust.

The municipal
bonds transferred to a TOB Trust typically are high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction includes a credit enhancement feature that provides for the
timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee and MUE, as a TOB Residual holder, would be responsible for
reimbursement of any payments of principal and interest made by the credit enhancement provider.

The TOB Residuals held by MUE generally
provide MUE with the right to cause the holders of a proportional share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, MUE may withdraw a corresponding share of the municipal bonds from the TOB
Trust. As a result, a tender option

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bond transaction, in effect, creates exposure for MUE to the entire return of the municipal bonds in the TOB