Company: IQI
Filing Date: 2025-05-02
Form Type: N-CSR
Source: 0001193125-25-111545
Chunk: 42

Company: Invesco Quality Municipal Income Trust
Filing Date: 2025-05-02
Form: N-CSR
Chunk 42
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 their qualified institutional buyers (such as the Trust) to keep certain offering information confidential, which

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could adversely affect the ability of the Trust to sell such securities. Tobacco Related Bonds Risk.The Trust may invest in tobacco settlement revenue bonds and tobacco bonds subject to a state’s appropriation pledge (STA Tobacco Bonds). ∎ Tobacco Settlement Revenue Bonds Risk.In 1998, U.S. tobacco manufacturers representing a majority of U.S. market share reached an out of court agreement, known as the Master Settlement Agreement (MSA), to settle claims against them by 46 states and six U.S. jurisdictions. Tobacco settlement revenue bonds are secured by payments made under the MSA, which provides for annual payments by participating tobacco manufacturers to the states and other jurisdictions in perpetuity. A number of states and local governments have securitized the future flow of those payments by selling bonds backed by the future revenue flows from the tobacco manufacturers. Annual payments on the bonds, and thus the risk to the Trust, are dependent on the receipt of future settlement payments by the state or its instrumentality. The actual amount of future settlement payments is dependent on many factors including, but not limited to, annual domestic cigarette shipments, cigarette consumption, inflation and the financial capability of participating tobacco companies. Accordingly, payments made by tobacco manufacturers could be reduced if there is a significant decrease in tobacco consumption, which could be a result of, among other things, increased regulation or restrictions on cigarette sales or smoking, anti-smoking campaigns, tax increases, price increases or increased competition from other nicotine delivery devices. A market share loss by the MSA companies to non-MSAparticipating tobacco manufacturers or issues affecting a tobacco manufacturer, such as bankruptcy, could also cause a reduction or delay in bond payments, which could affect the Trust’s net asset value. Because tobacco settlement revenue bonds are backed by payments from the tobacco manufacturers, and generally not by the credit of the state or local government issuing the bonds, their creditworthiness depends on the ability of tobacco manufacturers to meet their obligations. The MSA and tobacco manufacturers have been and continue to be subject to various legal claims and an adverse outcome could affect the payment streams associated with the MSA or cause delays or reductions in bond payments. ∎ “Subject to Appropriation” (STA) Tobacco Bonds Risk.STA Tobacco Bonds rely on both the revenue from the MSA and a state appropriation pledge. “Government appropriation” or “subject to appropriation” bonds (or “appropriation debt”)