0000844779-16-000136.txt : 20160628 0000844779-16-000136.hdr.sgml : 20160628 20160628113650 ACCESSION NUMBER: 0000844779-16-000136 CONFORMED SUBMISSION TYPE: NSAR-B PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20160430 FILED AS OF DATE: 20160628 DATE AS OF CHANGE: 20160628 EFFECTIVENESS DATE: 20160628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK MUNIHOLDINGS FUND II , INC CENTRAL INDEX KEY: 0001038190 IRS NUMBER: 223559055 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NSAR-B SEC ACT: 1940 Act SEC FILE NUMBER: 811-08215 FILM NUMBER: 161735238 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 800-441-7762 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: MUNIHOLDINGS FUND II INC /NJ/ DATE OF NAME CHANGE: 19981110 FORMER COMPANY: FORMER CONFORMED NAME: MUNIHOLDINGS INSURED FUND INC DATE OF NAME CHANGE: 19970519 FORMER COMPANY: FORMER CONFORMED NAME: MUNIHOLDINGS FUND II INC DATE OF NAME CHANGE: 19970422 NSAR-B 1 answer.fil PAGE 1 000 B000000 04/30/2016 000 C000000 0001038190 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 6.1 000 J000000 A 001 A000000 BLACKROCK MUNIHOLDINGS FUND II, INC. 001 B000000 811-08215 001 C000000 8004417762 002 A000000 100 BELLEVUE PARKWAY 002 B000000 WILMINGTON 002 C000000 DE 002 D010000 19809 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 N 007 B000000 0 007 C010100 1 008 A000001 BLACKROCK ADVISORS, LLC 008 B000001 A 008 C000001 801-47710 008 D010001 WILMINGTON 008 D020001 DE 008 D030001 19809 012 A000001 COMPUTERSHARE TRUST COMPANY, N.A. 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ANDREWS TITLE CFO EX-99.77I NEW SECUR 2 muh77i.txt BlackRock MuniHoldings Fund II, Inc. File No. 811-08215 Item No. 77I (Terms of New or Amended Securities) -- Attachment A copy of an amendment to the Articles Supplementary Establishing and Fixing the Rights and Preferences of Variable Rate Muni Term Preferred Shares is attached under Sub-Item 77Q1(a). EX-99.77Q1 OTHR EXHB 3 muh77q1d.txt BlackRock MuniHoldings Fund II, Inc. File No. 811-08215 Item No. 77Q1(d) (Copies of All Constituent Instruments Referred to in Sub-Item 77I) -- Attachment A copy of an amendment to the Articles Supplementary Establishing and Fixing the Rights and Preferences of Variable Rate Muni Term Preferred Shares is attached under Sub-Item 77Q1(a). EX-99.77B ACCT LTTR 4 muni777b.txt REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To Shareholders and Board of Directors of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc.: In planning and performing our audits of the financial statements of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc. (collectively, the "Funds"), as of and for the year ended April 30, 2016, in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered the Funds' internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. The management of the Funds is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A fund's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A fund's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the fund are being made only in accordance with authorizations of management and directors of the fund; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a fund's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Funds' annual or interim financial statements will not be prevented or detected on a timely basis. Our consideration of the Funds' internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the Public Company Accounting Oversight Board (United States). However, we noted no deficiencies in the Funds' internal control over financial reporting and their operation, including controls for safeguarding securities that we consider to be a material weakness, as defined above, as of April 30, 2016. This report is intended solely for the information and use of management and the Board of Directors of BlackRock MuniAssets Fund, Inc., BlackRock MuniEnhanced Fund, Inc., BlackRock MuniHoldings Fund, Inc., BlackRock MuniHoldings Fund II, Inc., BlackRock MuniHoldings Quality Fund, Inc., BlackRock Muni Intermediate Duration Fund, Inc., and BlackRock MuniVest Fund II, Inc., and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties. /s/ Deloitte & Touche LLP Boston, Massachusetts June 23, 2016 EX-99.77Q1 OTHR EXHB 5 muh77q1a.txt BlackRock MuniHoldings Fund II, Inc. File No. 811-08215 Item No. 77Q1(a) (Copies of Material Amendments to Registrant's Charter or By-laws) -- Attachment Attached please find as an exhibit under Sub-Item 77Q1(a) of Form N-SAR, a copy of BlackRock MuniHoldings Fund II, Inc.'s Articles of Amendment Amending the Articles Supplementary Establishing and Fixing the Rights and Preferences of Variable Rate Muni Term Preferred Shares filed with the State Department of Assessments and Taxation of Maryland on April 12, 2016. Exhibit 77Q1(a) BLACKROCK MUNIHOLDINGS FUND II, INC. ARTICLES OF AMENDMENT AMENDING THE ARTICLES SUPPLEMENTARY ESTABLISHING AND FIXING THE RIGHTS AND PREFERENCES OF VARIABLE RATE MUNI TERM PREFERRED SHARES This is to certify that First: The charter of BlackRock MuniHoldings Fund II, Inc., a Maryland ----- corporation (the "Corporation"), is amended by these Articles of Amendment, which amend the Articles Supplementary Establishing and Fixing the Rights and Preferences of Variable Rate Muni Term Preferred Shares, dated as of December 15, 2011, as amended on June 30, 2014 and on June 30, 2015 (together, the "Articles Supplementary"). Second: The charter of the Corporation is hereby amended by deleting ------ Appendix A to the Articles Supplementary and replacing it with the Appendix A attached hereto. Third: These Articles of Amendment shall be effective as of April 13, 2016. ----- Fourth: The amendment to the charter of the Corporation as set forth above ------ in these Articles of Amendment has been duly advised by the board of directors of the Corporation and approved by the stockholders of the Corporation as and to the extent required by law and in accordance with the charter of the Corporation. [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, BlackRock MuniHoldings Fund II, Inc. has caused these Articles of Amendment to be signed as of April 13, 2016 in its name and on its behalf by the person named below who acknowledges that these Articles of Amendment are the act of the Corporation and, to the best of such person's knowledge, information and belief and under penalties for perjury, all matters and facts contained in these Articles of Amendment are true in all material respects. BLACKROCK MUNIHOLDINGS FUND II, INC. By: /s/ Jonathan Diorio ------------------------------- Name: Jonathan Diorio Title: Vice President ATTEST: /s/ Janey Ahn -------------------------- Name: Janey Ahn Title: Secretary APPENDIX A ELIGIBLE ASSETS On the Date of Original Issue and at all times thereafter that the VMTP Preferred Shares are Outstanding: 1. "Eligible Assets" are defined to consist only of assets that conform to the following requirements as of the time of investment: A. Debt obligations. The following debt obligations which are not in payment default at the time of investment: i. "Municipal securities," defined as obligations of a State, the District of Columbia, a U.S. territory, or a political subdivision thereof and including general obligations, limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of the Internal Revenue Code of 1986 issued by or on behalf of any State, the District of Columbia, any U.S. territory or any political subdivision thereof, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State, the District of Columbia, any U.S. territory or any political subdivision thereof. The purchase of any municipal security will be based upon the Investment Adviser's assessment of an asset's relative value in terms of current yield, price, credit quality, and future prospects; and the Investment Adviser will monitor the creditworthiness of the Corporation's portfolio investments and analyze economic, political and demographic trends affecting the markets for such assets. ii.Debt obligations of the United States. iii.Debt obligations issued, insured, or guaranteed by a department or an agency of the U.S. Government, if the obligation, insurance, or guarantee commits the full faith and credit of the United States for the repayment of the obligation. iv.Debt obligations of the Washington Metropolitan Area Transit Authority guaranteed by the Secretary of Transportation under Section 9 of the National Capital Transportation Act of 1969. v. Debt obligations of the Federal Home Loan Banks. vi.Debt obligations, participations or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association. vii.Debt obligations which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to sections 305 or 306 of the Federal Home Loan Mortgage Corporation Act. viii.Debt obligations of any agency named in 12 U.S.C. (S) 24(Seventh) as eligible to issue obligations that a national bank may underwrite, deal in, purchase and sell for the bank's own account, including qualified Canadian government obligations. ix.Debt obligations of issuers other than those specified in (i) through (viii) above that are rated in one of the three highest rating categories by two or more NRSROs, or by one NRSRO if the security has been rated by only one NRSRO, and which have been determined by the Corporation, based on the Corporation's internal credit due diligence, to be securities where the issuer has adequate capacity to meet financial commitments under the security for the projected life of the security such that the lack of default on the security such that the risk of default on the security is low, and the full and timely repayment of principal and interest is expected, and that are "marketable". For these purposes, an obligation is "marketable" if: . it is registered under the Securities Act; . it is offered and sold pursuant to Securities and Exchange Commission Rule 144A; 17 CFR 230.144A; or . it can be sold with reasonable promptness at a price that corresponds reasonably to its fair value. x. Certificates or other securities evidencing ownership interests in a municipal bond trust structure (generally referred to as a tender option bond structure) that invests in (a) debt obligations of the types described in (i) above or (b) depository receipts reflecting ownership interests in accounts holding debt obligations of the types described in (i) above. An asset shall not fail to qualify as an Eligible Asset solely by virtue of the fact that: . it provides for repayment of principal and interest in any form including fixed and floating rate, zero interest, capital appreciation, discount, leases, and payment in kind; or . it is for long-term or short-term financing purposes. B. Derivatives i. Interest rate derivatives; or ii.Swaps, credit default swaps, futures, forwards, structured notes, options and swaptions related to Eligible Assets or on an index related to Eligible Assets. C. Other Assets i. (A) Shares of other investment companies registered under Section 8 of the Investment Company Act of 1940 (open- or closed-end funds and ETFs) the assets of which consist entirely of Eligible Assets based on the Investment Adviser's assessment of the assets of each such investment company taking into account the investment company's most recent publicly available schedule of investments and publicly disclosed investment policies. (B) Notwithstanding Paragraph C.i.(A) above, the Trust shall be permitted, subject to Applicable Law, to invest up to five percent (5%) of the Trust's Managed Assets as of the time of investment in securities issued by a money-market fund (each, an "Eligible Money-Market Fund") that is (a) registered under the Investment Company Act of 1940, and (b) affiliated with the Investment Adviser; provided that if the Investment Advisor represents that the Eligible Money-Market Fund meets the requirements of Paragraph C.i.(A) above, the amount of such Managed Assets invested in any such Eligible Money-Market Fund meeting the requirements of Paragraph C.i.(A) above shall be excluded from the foregoing five percent (5%) limitation. ii.Cash. iii.Repurchase agreements on assets described in A above. iv.Taxable fixed-income securities issued by an issuer described in Paragraph 1(A) (a "Permitted Issuer") that are not in default at the time of acquisition, acquired for the purpose of influencing control over such Permitted Issuer or creditor group of municipal bonds of such Permitted Issuer (a) the Corporation already owns and (b) which have deteriorated or are expected shortly to deteriorate, with the expectation that such investment should enable the Corporation to better maximize the value of its existing investment in such issuer, provided that the taxable fixed-income securities of such issuer so acquired do not constitute more than 0.5% of the Corporation's Managed Assets as of the time of investment. 2. At any time that VMTP Preferred Shares are outstanding, for any investment company the securities of which are held by the Corporation, the Corporation will provide or make available the following information to the Holders within 10 days after the public quarterly release of such information and on the Date of Original Issue (for the reporting period having ended most recently prior to the closing): i. the identity of the investment company and the CUSIP Number, the number of shares owned, as of the end of the prior quarter, and the percentage of the investment company's equity represented by the Corporation's investment, as of the end of the prior quarter; ii.other than in the case of an investment in an Eligible Money-Market Fund, a representation that each such investment company invests solely in "Eligible Assets," which representation may be based upon the affirmative representation of the underlying investment company's investment adviser; and iii.other than in the case of an investment in an Eligible Money-Market Fund, the information contained in the most recently released financial statements of each such underlying investment company relating to the portfolio holdings of each such investment company.