Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 45

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 45
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, except that the foregoing industry and issuer restrictions
shall not apply to general obligation bonds and the Fund will consider the obligor or borrower underlying the Municipal Bond to be the
“issuer.” The Fund may invest up to 30% of the Managed Assets allocated to the Municipal Bond Income Strategy in Municipal
Bonds that pay interest that may be includable in taxable income for purposes of the Federal alternative minimum tax. The Fund can invest,
directly or indirectly through Underlying Funds, in bonds of any maturity; however, under this strategy, it will generally invest in Municipal
Bonds that have a maturity of five years or longer at the time of purchase.

Under normal market conditions, the Fund invests
at least 60% of the Fund’s Managed Assets allocated to the Municipal Bond Income Strategy directly in investment grade Municipal
Bonds. The Subadviser invests no more than 20% of the Managed Assets allocated to the Municipal Bond Income Strategy in Municipal Bonds
rated at or below Caa1 by Moody’s or CCC+ by S&P or Fitch, or comparably rated by another NRSRO, including unrated bonds judged
to be of equivalent quality as determined by the Adviser or Subadviser, as applicable. Investment grade securities are those rated Baa
or higher by Moody’s (although Moody’s considers securities rated Baa to have speculative characteristics) or BBB or higher
by S&P or rated similarly by another NRSRO or, if unrated, judged to be of equivalent quality as determined by the Adviser or Subadviser,
as applicable. If the independent ratings agencies assign different ratings to the same security, the Fund will use the higher rating
for purposes of determining the security’s credit quality. Subject to the foregoing limitations, the Fund may invest in securities
receiving the lowest ratings from the NRSROs, including securities rated C by Moody’s or D- by S&P, which indicates that the
security is in default or has little prospect for full recovery of principal or interest.

| 46 | (888) 848-7569 | www.rivernorth.com |

RiverNorth Flexible Municipal Income Fund II, Inc.

Under normal market conditions, the Fund, or the
Underlying Funds in which the Fund invests, invests at least 50% of its Managed Assets, directly or indirectly in investment grade Municipal
Bonds.

“Managed Assets” means the total assets
of the Fund, including assets attributable to leverage, minus liabilities (