Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 74

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 74
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-driven increase in sea levels or flooding could cause coastal properties to
lose value or become unmarketable altogether. Economists warn that, unlike previous declines in the real estate market, properties in
affected coastal zones may not ever recover their value. Large wildfires driven by high winds and prolonged drought may devastate businesses
and entire communities and may be very costly to any business found to be responsible for the fire. Regulatory changes and divestment
movements tied to concerns about climate change could adversely affect the value of certain land and the viability of industries whose
activities or products are seen as accelerating climate change.

These losses could adversely affect the bonds
of municipalities that depend on tax or other revenues and tourist dollars generated by affected properties, and insurers of the property
and/or of municipal securities. Since property and security values are driven largely by buyers’ perceptions, it is difficult to know
the time period over which these market effects might unfold.

Swap Risks.The Fund and the Underlying Funds may enter into various swap agreements, including but not limited to, interest rate, credit default, index, equity (including total return), currency exchange and MMD Rate Locks for various portfolio management purposes. Swap agreements are subject to interest rate risks; credit risks; the risk that the counterparty to the swap will default on its obligation to pay the Fund and the risk that the Fund will not be able to meet its obligations to pay the counterparty to the swap. In addition, there is the risk that a swap may be terminated by the Fund or the counterparty in accordance with its terms. Each of these could cause the Fund to incur losses and fail to obtain its investment objective.

Short Sale Risks.Short sales are expected to be utilized by the Fund, if at all, for hedging purposes. A short sale is a transaction in which a fund sells a security it does not own in anticipation that the market price of that security will decline. Positions in shorted securities are speculative and riskier than long positions (purchases) in securities because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore, in theory, securities sold short have unlimited risk and may also result in higher transaction costs and higher taxes.

Rating Agency Risk.Ratings represent an NRSRO’s opinion regarding the quality of the security and are not a guarantee of quality. NRSROs may fail to make timely credit ratings in response to subsequent events.