UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-09191

 

Name of Fund: BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniHoldings Quality Fund II, Inc., 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 07/31/2011

 

Date of reporting period: 10/31/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 2.9%

 

 

 

 

 

 

 

Birmingham Special Care Facilities
Financing Authority, RB, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

$

5,225

 

$

5,737,416

 

County of Jefferson Alabama, RB,
Series A, 5.50%, 1/01/22

 

 

3,580

 

 

3,325,247

 

 

 

 

 

 

 

 

 

 

 

 

 

9,062,663

 

Arizona — 0.5%

 

 

 

 

 

 

 

State of Arizona, COP, Department of
Administration, Series A (AGM):

 

 

 

 

 

 

 

5.25%, 10/01/28

 

 

1,175

 

 

1,243,561

 

5.00%, 10/01/29

 

 

305

 

 

315,187

 

 

 

 

 

 

 

 

 

 

 

 

 

1,558,748

 

Arkansas — 4.0%

 

 

 

 

 

 

 

Arkansas Development Finance
Authority, Refunding RB, Series C
(NPFGC):

 

 

 

 

 

 

 

5.35%, 12/01/11 (a)

 

 

1,050

 

 

1,116,455

 

5.35%, 12/01/35

 

 

11,115

 

 

11,267,720

 

 

 

 

 

 

 

 

 

 

 

 

 

12,384,175

 

California — 11.7%

 

 

 

 

 

 

 

City of Vista California, COP, Refunding,
Community Projects (NPFGC), 5.00%,
5/01/37

 

 

3,695

 

 

3,610,089

 

County of Sacramento California, RB,
Senior Series A (AGC), 5.50%,
7/01/41

 

 

3,500

 

 

3,724,735

 

Los Angeles Community College District
California, GO, Election of 2001,
Series A (NPFGC), 5.00%, 8/01/32

 

 

5,000

 

 

5,238,850

 

Modesto Schools Infrastructure
Financing Agency, Special Tax Bonds
(AMBAC), 5.50%, 9/01/36

 

 

4,240

 

 

4,010,786

 

Oceanside Unified School District
California, GO, Series A (AGC), 5.25%,
8/01/33

 

 

3,175

 

 

3,395,694

 

Oxnard Union High School District, GO,
Refunding, Election of 2004, Series A
(AGM), 5.00%, 8/01/40

 

 

3,250

 

 

3,358,777

 

Port of Oakland, RB, Series K, AMT
(NPFGC), 5.75%, 11/01/21

 

 

2,975

 

 

2,979,165

 

Port of Oakland, Refunding RB,
Series M, AMT (NPFGC), 5.38%,
11/01/27

 

 

2,220

 

 

2,250,059

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Roseville Joint Union High School
District California, GO, Election of
2004, Series A (NPFGC), 5.00%,
8/01/29

 

$

2,985

 

$

3,075,356

 

Sacramento City Financing Authority
California, RB, Capital Improvement
(AMBAC), 5.00%, 12/01/27

 

 

150

 

 

152,394

 

San Francisco City & County Airports
Commission, RB, Special Facility
Lease, SFO Fuel, Series A, AMT (AGM),
6.10%, 1/01/20

 

 

1,250

 

 

1,252,487

 

State of California, GO, Refunding,
Veterans, Series BZ, AMT (NPFGC),
5.35%, 12/01/21

 

 

1,280

 

 

1,280,768

 

Stockton Public Financing Authority
California, RB, Redevelopment
Projects, Series A (Radian), 5.25%,
9/01/34

 

 

2,430

 

 

1,949,589

 

 

 

 

 

 

 

 

 

 

 

 

 

36,278,749

 

Colorado — 1.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Hospital, NCMC Inc. Project, Series B
(AGM), 6.00%, 5/15/26

 

 

3,300

 

 

3,750,615

 

Colorado Housing & Finance Authority,
Refunding RB, S/F Program, Senior
Series A-2, AMT, 7.50%, 4/01/31

 

 

135

 

 

142,312

 

 

 

 

 

 

 

 

 

 

 

 

 

3,892,927

 

District of Columbia — 0.8%

 

 

 

 

 

 

 

District of Columbia, RB, Deed Tax,
Housing Production Trust Fund,
Series A (NPFGC), 5.00%, 6/01/32

 

 

2,500

 

 

2,547,650

 

Florida — 19.2%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%,
10/01/37 (b)

 

 

1,930

 

 

325,475

 

Miami International Airport, Series
A, AMT (AGM), 5.25%, 10/01/41

 

 

13,010

 

 

13,186,155

 

Miami International Airport, Series
A, AMT (AGM), 5.50%, 10/01/41

 

 

6,700

 

 

6,898,990

 

Series A, AMT (AGM), 5.00%,
10/01/33

 

 

6,730

 

 

6,730,942

 

Water & Sewer System (AGM),
5.00%, 10/01/39

 

 

11,010

 

 

11,566,005

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

GO

General Obligation Bonds

HFA

Housing Finance Agency

ISD

Independent School District

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

S/F

Single Family

VRDN

Variable Rate Demand Notes

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2010

1

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

County of Miami-Dade Florida,
Refunding RB, Water & Sewer System
(AGM), 5.00%, 10/01/29

 

$

3,000

 

$

3,258,990

 

County of St. John’s Florida, RB, CAB
(AMBAC), 5.37%, 6/01/31 (b)

 

 

995

 

 

333,176

 

Jacksonville Port Authority, RB, AMT
(AGC), 6.00%, 11/01/38

 

 

3,625

 

 

3,714,393

 

Orange County School Board, COP,
Series A (AGC), 5.50%, 8/01/34

 

 

12,375

 

 

13,382,449

 

 

 

 

 

 

 

 

 

 

 

 

 

59,396,575

 

Georgia — 3.5%

 

 

 

 

 

 

 

Georgia Higher Education Facilities
Authority, RB, USG Real Estate III,
Series A (AGC), 5.00%, 6/15/38

 

 

2,175

 

 

2,235,117

 

Gwinnett County Hospital Authority,
Refunding RB, Gwinnett Hospital
System, Series D (AGM), 5.50%,
7/01/41

 

 

3,425

 

 

3,561,144

 

Metropolitan Atlanta Rapid Transit
Authority, RB, Third Indenture,
Series B (AGM), 5.00%, 7/01/34

 

 

4,830

 

 

5,127,576

 

 

 

 

 

 

 

 

 

 

 

 

 

10,923,837

 

Idaho — 0.1%

 

 

 

 

 

 

 

Idaho Housing & Finance Association,
RB, S/F Mortgage, Series E, AMT,
6.00%, 1/01/32

 

 

260

 

 

273,842

 

Illinois — 7.5%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

2,080

 

 

2,405,707

 

Chicago Transit Authority, RB, Federal
Transit Administration Section 5309,
Series A (AGC), 6.00%, 6/01/26

 

 

3,400

 

 

3,968,106

 

City of Chicago Illinois, GO, Refunding,
Projects, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/28

 

 

2,315

 

 

2,470,985

 

5.00%, 1/01/29

 

 

3,585

 

 

3,801,247

 

5.00%, 1/01/30

 

 

1,430

 

 

1,508,450

 

City of Chicago Illinois, RB, General,
Third Lien, Series C (AGM), 5.25%,
1/01/35

 

 

2,085

 

 

2,188,520

 

City of Chicago Illinois, Refunding RB,
Second Lien (NPFGC), 5.50%,
1/01/30

 

 

2,270

 

 

2,567,938

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/28

 

 

4,000

 

 

4,319,160

 

 

 

 

 

 

 

 

 

 

 

 

 

23,230,113

 

Indiana — 3.5%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Series A (NPFGC), 5.00%, 1/01/42

 

 

8,000

 

 

8,152,560

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB,
Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

2,370

 

 

2,603,469

 

 

 

 

 

 

 

 

 

 

 

 

 

10,756,029

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Iowa — 1.0%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB,
Iowa Health System (AGC), 5.25%,
2/15/29

 

$

2,915

 

$

3,140,009

 

Kansas — 0.5%

 

 

 

 

 

 

 

Sedgwick & Shawnee Counties Kansas,
MRB, Series A-2, AMT (Ginnie Mae),
6.20%, 12/01/33

 

 

1,585

 

 

1,609,346

 

Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, RB, Louisville
Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

 

1,000

 

 

1,079,480

 

Kentucky State Property & Buildings
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/29

 

 

1,525

 

 

1,676,936

 

 

 

 

 

 

 

 

 

 

 

 

 

2,756,416

 

Louisiana — 1.3%

 

 

 

 

 

 

 

Louisiana State Citizens Property
Insurance Corp., RB, Series C-3 (AGC),
6.13%, 6/01/25

 

 

3,550

 

 

3,997,123

 

Maine — 0.9%

 

 

 

 

 

 

 

City of Portland Maine, RB, General
(AGM), 5.25%, 1/01/35

 

 

2,795

 

 

2,942,352

 

Michigan — 11.6%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series B (NPFGC),
5.50%, 7/01/29

 

 

4,170

 

 

4,352,187

 

Senior Lien, Series B (AGM), 7.50%,
7/01/33

 

 

2,500

 

 

3,046,450

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC),
5.75%, 7/01/27

 

 

2,600

 

 

2,854,670

 

Second Lien, Series E (BHAC),
5.75%, 7/01/31

 

 

5,060

 

 

5,472,997

 

Senior Lien, Series C-1 (AGM),
7.00%, 7/01/27

 

 

4,180

 

 

4,986,113

 

Senior Lien, Series C-2 (BHAC),
5.25%, 7/01/29

 

 

1,860

 

 

1,955,697

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

2,000

 

 

2,063,580

 

Michigan State Building Authority,
Refunding RB, Facilities Program,
Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,579,651

 

5.25%, 10/15/25

 

 

750

 

 

816,473

 

Michigan Strategic Fund, Refunding RB,
AMT (Syncora):

 

 

 

 

 

 

 

Detroit Edison Co. Project, Series A,
5.50%, 6/01/30

 

 

2,000

 

 

2,000,460

 

Detroit Edison Co., Pollution,
Series C, 5.65%, 9/01/29

 

 

2,935

 

 

2,943,805

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

 

3,115

 

 

3,744,417

 

 

 

 

 

 

 

 

 

 

 

 

 

35,816,500

 

 

 

 

 

2

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2010

 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

$

1,975

 

$

2,250,513

 

Nevada — 4.1%

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International
Airport, Series A (AGC), 5.25%,
7/01/39

 

 

5,765

 

 

5,972,598

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/36

 

 

6,595

 

 

6,614,257

 

Nevada Housing Division, Refunding RB,
S/F Mortgage, Mezzanine, Series A-2,
AMT (NPFGC), 6.30%, 4/01/22

 

 

95

 

 

96,492

 

 

 

 

 

 

 

 

 

 

 

 

 

12,683,347

 

New Jersey — 5.9%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/33

 

 

11,000

 

 

11,335,720

 

New Jersey Health Care Facilities
Financing Authority, RB, Virtua Health
(AGC), 5.50%, 7/01/38

 

 

3,400

 

 

3,687,402

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (AGC), 5.63%, 12/15/28

 

 

2,930

 

 

3,324,876

 

 

 

 

 

 

 

 

 

 

 

 

 

18,347,998

 

New York — 0.8%

 

 

 

 

 

 

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-3,
5.25%, 1/15/39

 

 

2,300

 

 

2,489,359

 

North Carolina — 0.3%

 

 

 

 

 

 

 

North Carolina HFA, RB, Home
Ownership, Series 14A, AMT (AMBAC),
5.35%, 1/01/22

 

 

1,060

 

 

1,067,229

 

Pennsylvania — 2.8%

 

 

 

 

 

 

 

Delaware River Port Authority, RB,
Series D (AGC), 5.00%, 1/01/40

 

 

3,000

 

 

3,134,460

 

Pennsylvania Turnpike Commission, RB,
Sub-Series B (AGM), 5.25%, 6/01/39

 

 

3,000

 

 

3,131,760

 

Pittsburgh & Allegheny County Sports &
Exhibition Authority, Refunding RB,
Regional Asset District Sales Tax
(AGM), 5.00%, 2/01/31

 

 

2,270

 

 

2,380,617

 

 

 

 

 

 

 

 

 

 

 

 

 

8,646,837

 

Puerto Rico — 1.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

3,500

 

 

4,000,255

 

South Carolina — 5.4%

 

 

 

 

 

 

 

South Carolina State Housing Finance &
Development Authority, Refunding RB,
Series A-2, AMT (AGM), 6.35%,
7/01/19

 

 

960

 

 

973,920

 

South Carolina State Public Service
Authority, RB, Series A (AMBAC),
5.00%, 1/01/42

 

 

15,000

 

 

15,670,500

 

 

 

 

 

 

 

 

 

 

 

 

 

16,644,420

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas — 19.0%

 

 

 

 

 

 

 

City of Austin Texas, Refunding RB,
Series A (AGM):

 

 

 

 

 

 

 

5.00%, 11/15/28

 

$

1,795

 

$

1,943,788

 

5.00%, 11/15/29

 

 

2,270

 

 

2,440,659

 

City of Dallas Texas, Refunding RB
(AGC), 5.25%, 8/15/38

 

 

2,100

 

 

2,199,225

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

6,700

 

 

7,761,414

 

County of Bexar Texas, RB, Venue
Project, Motor Vehicle Rental (BHAC),
5.00%, 8/15/39

 

 

1,805

 

 

1,881,749

 

Harris County Health Facilities
Development Corp., Refunding RB,
Memorial Hermann Healthcare
System, Series B, 7.25%, 12/01/35

 

 

1,000

 

 

1,148,130

 

Lower Colorado River Authority,
Refunding RB, LCRA Transmission
Services Project (AGC), 5.50%,
5/15/36

 

 

2,935

 

 

3,149,842

 

Lubbock Cooper ISD Texas, GO, School
Building (AGC), 5.75%, 2/15/42

 

 

1,250

 

 

1,359,775

 

North Texas Tollway Authority, RB,
System, First Tier, Series K-2 (AGC),
6.00%, 1/01/38

 

 

1,000

 

 

1,130,000

 

North Texas Tollway Authority,
Refunding RB (NPFGC) System, First
Tier:

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

14,750

 

 

15,645,767

 

Series A, 5.13%, 1/01/28

 

 

3,950

 

 

4,154,017

 

Series A, 5.63%, 1/01/33

 

 

10,975

 

 

11,696,277

 

Series B, 5.75%, 1/01/40

 

 

1,000

 

 

1,060,730

 

Tarrant County Cultural Education
Facilities Finance Corp., Refunding
RB, Christus Health, Series A (AGC),
6.50%, 7/01/37

 

 

3,000

 

 

3,339,030

 

 

 

 

 

 

 

 

 

 

 

 

 

58,910,403

 

Utah — 1.4%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health
Services Inc., 5.00%, 8/15/41

 

 

4,085

 

 

4,246,766

 

Virginia — 0.8%

 

 

 

 

 

 

 

Virginia Public School Authority, RB,
School Financing, 6.50%, 12/01/35

 

 

2,195

 

 

2,562,684

 

Washington — 1.7%

 

 

 

 

 

 

 

Chelan County Public Utility District
No. 1, RB, Chelan Hydro System,
Series A, AMT (AMBAC), 5.45%,
7/01/37

 

 

3,840

 

 

3,848,793

 

Washington Health Care Facilities
Authority, Refunding RB, Providence
Health, Series C (AGM), 5.25%,
10/01/33

 

 

1,330

 

 

1,416,703

 

 

 

 

 

 

 

 

 

 

 

 

 

5,265,496

 

Total Municipal Bonds – 115.4%

 

 

 

 

 

357,682,361

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2010

3

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

Par
(000)

 

Value

 

Alabama — 1.3%

 

 

 

 

 

 

 

Mobile Board of Water & Sewer
Commissioners, RB (NPFGC), 5.00%,
1/01/31

 

$

3,750

 

$

3,856,350

 

California — 3.6%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries,
Parks, and Public Safety Project
(NPFGC), 5.00%, 9/01/30

 

 

3,805

 

 

3,991,839

 

San Diego Community College District
California, GO, Election of 2002
(AGM), 5.00%, 5/01/30

 

 

1,486

 

 

1,571,862

 

Sequoia Union High School District
California, GO, Refunding, Election of
2004, Series B (AGM), 5.50%,
7/01/35

 

 

5,189

 

 

5,493,876

 

 

 

 

 

 

 

 

 

 

 

 

 

11,057,577

 

Colorado — 3.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health, Series C-3 (AGM),
5.10%, 10/01/41

 

 

9,410

 

 

9,675,550

 

District of Columbia — 0.6%

 

 

 

 

 

 

 

District of Columbia Water & Sewer
Authority, RB, Series A, 6.00%,
10/01/35

 

 

1,700

 

 

1,935,303

 

Florida — 7.6%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding
RB (NPFGC), 5.00%, 10/01/35

 

 

6,493

 

 

6,608,786

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B-1, 6.00%, 7/01/38

 

 

12,500

 

 

14,040,250

 

Lee County Housing Finance Authority,
RB, Multi-County Program, Series A-2,
AMT (Ginnie Mae), 6.00%, 9/01/40

 

 

2,535

 

 

2,851,191

 

 

 

 

 

 

 

 

 

 

 

 

 

23,500,227

 

Georgia — 2.1%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/34

 

 

6,290

 

 

6,584,246

 

Illinois — 6.3%

 

 

 

 

 

 

 

Chicago Illinois O Hare International
Airport Rev Ser A, 5.00%, 1/01/38

 

 

7,500

 

 

7,646,512

 

City of Chicago Illinois, RB, Series A
(AGM), 5.00%, 1/01/33

 

 

7,500

 

 

7,646,513

 

City of Chicago Illinois, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

 

3,969

 

 

4,277,633

 

 

 

 

 

 

 

 

 

 

 

 

 

19,570,658

 

Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky State Property & Building
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/27

 

 

2,304

 

 

2,553,349

 

Massachusetts — 1.7%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series A (AGM), 5.00%,
8/15/30

 

 

4,994

 

 

5,284,902

 

Nevada — 6.6%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

11,295,400

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

Par
(000)

 

Value

 

Nevada (concluded)

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO (concluded):

 

 

 

 

 

 

 

Series B, 5.50%, 7/01/29

 

$

8,247

 

$

9,223,123

 

 

 

 

 

 

 

 

 

 

 

 

 

20,518,523

 

New Jersey — 1.4%

 

 

 

 

 

 

 

New Jersey State Housing & Mortgage
Finance Agency, RB, S/F Housing,
Series CC, 5.25%, 10/01/29

 

 

3,941

 

 

4,163,166

 

New York — 2.4%

 

 

 

 

 

 

 

Sales Tax Asset Receivable Corp., RB,
Series A (AMBAC), 5.25%, 10/15/27

 

 

6,751

 

 

7,454,234

 

Washington — 2.5%

 

 

 

 

 

 

 

City of Bellevue Washington, GO,
Refunding (NPFGC), 5.50%,
12/01/39

 

 

6,883

 

 

7,728,094

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 40.0%

 

 

 

 

 

123,882,179

 

Total Long-Term Investments

 

 

 

 

 

 

 

(Cost – $460,600,472) – 155.4%

 

 

 

 

 

481,564,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

Florida — 0.4%

 

 

 

 

 

 

 

Jacksonville Health Facilities
Authority, VRDN, 0.28%,
8/15/27 (d)

 

 

1,115

 

 

1,115,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market Fund – 4.9%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.13% (e)(f)

 

 

15,320,105

 

 

15,320,105

 

Total Short-Term Securities
(Cost – $16,435,105) – 5.3%

 

 

 

 

 

16,435,105

 

Total Investments
(Cost – $477,035,577*) – 160.7%

 

 

 

 

 

497,999,645

 

Other Assets Less Liabilities – 1.7%

 

 

 

 

 

5,376,500

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (20.1)%

 

 

 

 

 

(62,432,272

)

Preferred Shares, at Redemption Value – (42.3)%

 

 

 

 

 

(131,006,607

)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

309,937,266

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

414,839,331

 

 

 

 

Gross unrealized appreciation

 

$

22,915,447

 

Gross unrealized depreciation

 

 

(2,138,067

)

 

 

 

Net unrealized appreciation

 

$

20,777,380

 

 

 

 

 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

 

 

4

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2010

 

 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

 

 

(c)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(d)

Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

(e)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
July 31,
2010

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

17,366,850

 

 

(2,046,745

)

 

15,320,105

 

$

6,760

 

 

 

 

(f)

Represents the current yield as of report date.

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

481,564,540

 

 

—

 

$

481,564,540

 

Short-Term
Securities

 

$

15,320,105

 

 

1,115,000

 

 

—

 

 

16,435,105

 

 

 

Total

 

$

15,320,105

 

$

482,679,540

 

 

—

 

$

497,999,645

 

 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

OCTOBER 31, 2010

5

Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(b) –

There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

BlackRock MuniHoldings Quality Fund II, Inc.
   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniHoldings Quality Fund II, Inc.
   
  Date: December 22, 2010
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniHoldings Quality Fund II, Inc.
   
  Date: December 22, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Quality Fund II, Inc.
     
  Date: December 22, 2010