BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

Regulatory Filings • Dec 22, 2010

N-Q 1 i00562_mue-nq.htm

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 52 nd 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

insert

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

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	$
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 — FFI Institutional Tax-Exempt Fund	17,366,850	(2,046,745	)	15,320,105	Income — $ 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 | | Total |
| --- | --- | --- | --- | --- |
| Assets: | | | | |
| Investments
in Securities: | | | | |
| Long-Term Investments 1 | — | $ 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

end

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