BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

Regulatory Filings • Jun 27, 2011

N-Q 1 i00272_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: John M. Perlowski, 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: 04/30/2011

Item 1 – Schedule of Investments

insert

Schedule of Investments April 30, 2011 (Unaudited) BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
Alabama — 3.1%
Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39	$ 5,225	$ 5,464,880
County of Jefferson Alabama, RB, Series A, 5.50%, 1/01/22	3,580	3,143,813
		8,608,693
Arizona — 0.4%
State of Arizona, COP, Department of Administration, Series A (AGM), 5.25%, 10/01/28	1,175	1,206,314
Arkansas — 4.0%
Arkansas Development Finance Authority, Refunding RB, Series C (NPFGC), 5.35%, 12/01/35	11,115	11,137,897
California — 17.0%
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38	5,050	5,183,926
California Health Facilities Financing Authority, Refunding RB, Sutter Health, Series B, 6.00%, 8/15/42	2,865	2,905,425
City of Sunnyvale California, Refunding RB, 5.25%, 4/01/40	2,800	2,831,696
City of Vista California, COP, Refunding, Community Projects (NPFGC), 5.00%, 5/01/37	3,375	2,941,380
County of Sacramento California, RB, Senior Series A (AGC), 5.50%, 7/01/41	3,500	3,479,280
Los Angeles Community College District California, GO:
Election of 2001, Series A (NPFGC), 5.00%, 8/01/32	5,000	4,948,000
Election of 2008, Series C, 5.25%, 8/01/39	2,500	2,525,350
Oceanside Unified School District California, GO, Series A (AGC), 5.25%, 8/01/33	3,175	3,176,619
Oxnard Union High School District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/40	3,250	2,953,373
Port of Oakland, RB, Series K, AMT (NPFGC), 5.75%, 11/01/21	2,975	2,976,398

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (concluded) | | |
| Port of Oakland, Refunding RB, Series M, AMT (NPFGC), 5.38%, 11/01/27 | $ 2,220 | $ 2,098,100 |
| Roseville Joint Union High School District California, GO, Election of 2004, Series A (NPFGC), 5.00%, 8/01/29 | 2,985 | 2,993,656 |
| San Bernardino Community College District, GO, Election of 2002, Series A, 6.25%, 8/01/33 | 2,165 | 2,370,502 |
| San Francisco City & County Airports Commission, RB, Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20 | 1,250 | 1,251,800 |
| Schools Infrastructure Financing Agency, Special Tax Bonds (AGM), 5.50%, 9/01/36 | 230 | 219,703 |
| State of California, GO, Refunding, Veterans, Series BZ, AMT (NPFGC), 5.35%, 12/01/21 | 10 | 10,005 |
| Stockton Public Financing Authority California, RB, Redevelopment Projects, Series A (Radian), 5.25%, 9/01/34 | 2,430 | 1,702,920 |
| Ventura County Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/33 | 3,175 | 3,295,777 |
| | | 47,863,910 |
| Colorado — 1.6% | | |
| Colorado Health Facilities Authority, RB, Hospital, NCMC Inc. Project, Series B (AGM), 6.00%, 5/15/26 | 3,300 | 3,559,314 |
| Colorado Housing & Finance Authority, Refunding RB, S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31 | 125 | 129,805 |
| Regional Transportation District, COP, Series A, 5.00%, 6/01/25 | 765 | 778,387 |
| | | 4,467,506 |

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
LOC	Letter of Credit
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. APRIL 30, 2011 1

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

Municipal Bonds	Par (000)	Value
District
of Columbia — 0.9%
District of Columbia, RB, Deed Tax, Housing Production Trust Fund, Series A (NPFGC), 5.00%, 6/01/32	$ 2,500	$ 2,390,650
Florida — 15.4%
County of Miami-Dade Florida, RB:
CAB,
Sub-Series A (NPFGC), 5.00%, 10/01/37 (a)	350	52,612
Miami
International Airport, Series A, AMT (AGM), 5.25%, 10/01/41	12,420	11,235,877
Miami
International Airport, Series A, AMT (AGM), 5.50%, 10/01/41	6,700	6,295,923
Series
A, AMT (AGM), 5.00%, 10/01/33	6,430	5,909,685
Water
& Sewer System (AGM), 5.00%, 10/01/39	1,485	1,441,103
Jacksonville Port Authority, RB, AMT (AGC), 6.00%, 11/01/38	3,625	3,647,729
Orange County School Board, COP, Series A (AGC), 5.50%, 8/01/34	7,600	7,659,432
Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/36	6,965	7,014,730
		43,257,091
Georgia — 3.8%
Augusta-Richmond County Georgia, RB (AGM), 5.25%, 10/01/39	2,500	2,513,875
Gwinnett County Hospital Authority, Refunding RB, Gwinnett Hospital System, Series D (AGM), 5.50%, 7/01/41	3,425	3,293,240
Metropolitan Atlanta Rapid Transit Authority, RB, Third Indenture, Series B (AGM), 5.00%, 7/01/34	4,830	4,847,485
		10,654,600
Idaho — 0.1%
Idaho Housing & Finance Association, RB, S/F Mortgage, Series E, AMT, 6.00%, 1/01/32	245	250,966
Illinois — 7.8%
Chicago Board of Education Illinois, GO, Refunding, Chicago School Reform Board, Series A (NPFGC), 5.50%, 12/01/26	2,080	2,096,931
Chicago Transit Authority, RB, Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26	3,400	3,713,242
City of Chicago Illinois, GO, Refunding, Projects, Series A (AGM), 5.00%, 1/01/29	2,380	2,311,837
City of Chicago Illinois, RB, General, Third Lien, Series C (AGM), 5.25%, 1/01/35	2,085	2,059,793
City of Chicago Illinois, Refunding RB:
General,
Third Lien, Series C, 6.50%, 1/01/41 (b)	2,230	2,376,377
Second
Lien (NPFGC), 5.50%, 1/01/30	2,270	2,327,181

Municipal Bonds	Par (000)	Value
Illinois
(concluded)
Railsplitter Tobacco Settlement Authority, RB:
5.50%, 6/01/23	$ 2,350	$ 2,267,468
6.00%, 6/01/28	670	644,366
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/28	4,000	4,076,560
		21,873,755
Indiana — 3.5%
Indiana Municipal Power Agency, RB, Series A (NPFGC), 5.00%, 1/01/42	8,000	7,409,840
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38	2,370	2,408,323
		9,818,163
Iowa — 0.6%
Iowa Finance Authority, Refunding RB, Iowa Health System (AGC), 5.25%, 2/15/29	1,710	1,721,816
Kansas — 0.5%
Sedgwick & Shawnee Counties Kansas, MRB, Series A-2, AMT (Ginnie Mae), 6.20%, 12/01/33	1,480	1,502,200
Kentucky — 0.9%
Kentucky Economic Development Finance Authority, RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%, 12/01/38	1,000	1,011,430
Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29	1,525	1,575,874
		2,587,304
Louisiana — 1.4%
Louisiana State Citizens Property Insurance Corp., RB, Series C-3 (AGC), 6.13%, 6/01/25	3,550	3,928,181
Michigan — 10.4%
City of Detroit Michigan, RB:
Second
Lien, Series B (NPFGC), 5.50%, 7/01/29	4,170	4,088,018
Senior
Lien, Series B (AGM), 7.50%, 7/01/33	2,500	2,916,675
City of Detroit Michigan, Refunding RB:
Second
Lien, Series C (BHAC), 5.75%, 7/01/27	2,600	2,692,352
Second
Lien, Series E (BHAC), 5.75%, 7/01/31	5,060	5,172,787
Senior
Lien, Series C-1 (AGM), 7.00%, 7/01/27	4,180	4,853,523
Senior
Lien, Series C-2 (BHAC), 5.25%, 7/01/29	1,860	1,855,536
Kalamazoo Hospital Finance Authority, RB, Bronson Methodist Hospital (AGM), 5.25%, 5/15/36	1,255	1,169,070
Michigan State Building Authority, Refunding RB, Facilities Program, Series I (AGC):
5.25%, 10/15/24	1,440	1,505,578
5.25%, 10/15/25	750	773,857

2 BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. APRIL 30, 2011

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

Municipal Bonds	Par (000)	Value
Michigan
(concluded)
Michigan Strategic Fund, Refunding RB, Detroit Edison Co. Project, Series A, AMT (Syncora), 5.50%, 6/01/30	$ 750	$ 718,350
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39	3,115	3,531,694
		29,277,440
Minnesota — 0.7%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38	1,975	2,104,323
Nevada — 5.2%
Clark County Water Reclamation District, GO, Series A, 5.25%, 7/01/34	3,210	3,276,030
County of Clark Nevada, RB:
Las
Vegas-McCarran International Airport, Series A (AGC), 5.25%, 7/01/39	5,765	5,410,510
Subordinate
Lien, Series A-2 (NPFGC), 5.00%, 7/01/36	6,595	5,973,223
Nevada Housing Division, Refunding RB, S/F Mortgage, Mezzanine, Series A-2, AMT (NPFGC), 6.30%, 4/01/22	95	96,450
		14,756,213
New Jersey — 6.2%
New Jersey EDA, RB, Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33	11,000	10,927,950
New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38	3,400	3,417,476
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGC), 5.63%, 12/15/28	2,930	3,154,379
		17,499,805
New York — 4.7%
New York City Municipal Water Finance Authority, RB:
Fiscal
2009, Series EE, 5.25%, 6/15/40	6,930	7,067,283
Second
General Resolution, Series EE, 5.38%, 6/15/43	3,720	3,836,808
New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39	2,300	2,324,495
		13,228,586
North Carolina — 0.4%
North Carolina HFA, RB, Home Ownership, Series 14A, AMT (AMBAC), 5.35%, 1/01/22	1,020	1,021,306
Pennsylvania — 1.0%
Delaware River Port Authority, RB, Series D (AGC), 5.00%, 1/01/40	3,000	2,950,410

Municipal Bonds	Par (000)	Value
Puerto Rico — 1.3%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39	$ 3,500	$ 3,627,820
South Carolina — 5.6%
South Carolina State Housing Finance & Development Authority, Refunding RB, Series A-2, AMT (AGM), 6.35%, 7/01/19	765	775,588
South Carolina State Public Service Authority, RB, Series A (AMBAC), 5.00%, 1/01/42	15,000	15,028,350
		15,803,938
Texas — 19.2%
City of Austin Texas, Refunding RB, Series A (AGM):
5.00%, 11/15/28	1,795	1,849,927
5.00%, 11/15/29	2,270	2,320,076
City of Houston Texas, Refunding RB, Combined, First Lien, Series A (AGC), 6.00%, 11/15/35	6,700	7,338,711
Clifton Higher Education Finance Corp., Refunding RB, Baylor University, 5.25%, 3/01/32	3,120	3,214,068
Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.25%, 12/01/38	5,965	6,126,115
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/35	1,000	1,084,740
Lubbock Cooper ISD Texas, GO, School Building (AGC), 5.75%, 2/15/42	1,250	1,288,638
North Texas Tollway Authority, RB, System, First Tier, Series K-2 (AGC), 6.00%, 1/01/38	1,000	1,023,950
North Texas Tollway Authority, Refunding RB (NPFGC), System, First Tier:
5.75%, 1/01/40	11,575	11,241,756
Series A, 5.13%, 1/01/28	3,425	3,427,637
Series A, 5.63%, 1/01/33	10,975	10,899,272
Series B, 5.75%, 1/01/40	1,000	971,210
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37	3,000	3,107,610
		53,893,710
Utah — 1.3%
City of Riverton Utah, RB, IHC Health Services Inc., 5.00%, 8/15/41	4,085	3,785,079
Virginia — 0.9%
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35	2,195	2,421,085
Washington — 1.9%
City of Seattle Washington, Refunding RB, Series A, 5.25%, 2/01/36	2,400	2,477,496
State of Washington, GO, Various Purpose, Series B, 5.25%, 2/01/36	1,865	1,932,569

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. APRIL 30, 2011 3

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
Washington — (concluded)
Washington Health Care Facilities Authority, Refunding RB, Providence Health, Series C (AGM), 5.25%, 10/01/33	$ 1,020	$ 1,014,635
		5,424,700
Total Municipal Bonds – 119.8%		337,063,461

Municipal Bonds Transferred to Tender Option Bond Trusts (c)
Alabama — 1.3%
Mobile Board of Water & Sewer Commissioners, RB (NPFGC), 5.00%, 1/01/31	3,750	3,768,337
California — 3.8%
City of San Jose California, GO, Libraries, Parks, and Public Safety Project (NPFGC), 5.00%, 9/01/30	3,805	3,849,497
San Diego Community College District California, GO, Election of 2002 (AGM), 5.00%, 5/01/30	1,486	1,490,321
Sequoia Union High School District California, GO, Refunding, Election of 2004, Series B (AGM), 5.50%, 7/01/35	5,189	5,279,581
		10,619,399
Colorado — 3.1%
Colorado Health Facilities Authority, RB, Catholic Health, Series C-3 (AGM), 5.10%, 10/01/41	9,410	8,817,076
District of Columbia — 0.7%
District of Columbia Water & Sewer Authority, RB, Series A, 6.00%, 10/01/35	1,700	1,860,724
Florida — 7.8%
City of St. Petersburg Florida, Refunding RB (NPFGC), 5.00%, 10/01/35	6,493	6,349,511
County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/38	12,500	13,275,500
Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40	2,235	2,375,894
		22,000,905
Georgia — 2.3%
Augusta-Richmond County Georgia, RB (AGM), 5.25%, 10/01/34	6,290	6,362,272
Illinois — 6.5%
Chicago Illinois O Hare International Airport Rev Ser A, 5.00%, 1/01/38	7,500	7,098,187
City of Chicago Illinois, RB, Series A (AGM), 5.00%, 1/01/33	7,500	7,098,188
City of Chicago Illinois, Refunding RB, Second Lien (AGM), 5.25%, 11/01/33	3,969	3,983,377
		18,179,752

| Municipal
Bonds Transferred to Tender Option Bond Trusts (c) | Par (000) | Value |
| --- | --- | --- |
| Kentucky — 0.9% | | |
| Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 | $ 2,304 | $ 2,411,815 |
| Massachusetts — 1.8% | | |
| Massachusetts School Building Authority, RB, Series A (AGM), 5.00%, 8/15/30 | 4,994 | 5,115,671 |
| Nevada — 6.9% | | |
| Clark County Water Reclamation District, GO: | | |
| Limited Tax, 6.00%, 7/01/38 | 10,000 | 10,808,300 |
| Series B, 5.50%, 7/01/29 | 8,247 | 8,747,841 |
| | | 19,556,141 |
| New Jersey — 1.4% | | |
| New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 | 3,941 | 3,968,845 |
| New York — 2.6% | | |
| Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.25%, 10/15/27 | 6,751 | 7,225,882 |
| Washington — 2.6% | | |
| City of Bellevue Washington, GO, Refunding (NPFGC), 5.50%, 12/01/39 | 6,883 | 7,414,160 |
| Total Municipal Bonds Transferred to Tender Option Bond Trusts – 41.7% | | 117,300,979 |
| Total Long-Term Investments (Cost – $458,200,365) – 161.5% | | 454,364,440 |

Short-Term Securities
Florida — 0.4%
Jacksonville Health Facilities Authority, Refunding RB, VRDN, Baptist Series C (Bank of America NA LOC), 0.27%, 8/15/27(d)	1,015	1,015,000

Money Market Fund – 5.5%
FFI Institutional Tax-Exempt Fund, 0.23% (e)(f)	15,439,072	15,439,072
Total Short-Term Securities (Cost – $16,454,072) – 5.9%		16,454,072
Total Investments
(Cost – $474,654,437*) – 167.4%		470,818,512
Other Assets Less Liabilities – 1.3%		3,685,855
Liability for Trust Certificates, Including
Interest Expense and Fees Payable – (22.1)%		(62,231,247	)
Preferred Shares, at Redemption Value –
(46.6)%		(131,006,109	)
Net Assets Applicable to Common
Shares–100.0%	$	281,267,011

4 BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. APRIL 30, 2011

Schedule of Investments (continued) BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

• The cost and unrealized appreciation (depreciation) of investments as of April 30, 2011, as computed for federal income tax purposes, were as follows:

| Aggregate
cost | $ | |
| --- | --- | --- |
| Gross
unrealized appreciation | $ 6,896,769 | |
| Gross
unrealized depreciation | (10,907,168 | ) |
| Net
unrealized depreciation | $ (4,010,399 | ) |

| (a) | Represents a
zero-coupon bond. Rate shown reflects the current yield as of report date. |
| --- | --- |
| (b) | When-issued
security. Unsettled when-issued transactions were as follows: |

Counterparty	Value	Unrealized Appreciation
Citigroup
Global Markets	$ 2,376,377	$ 23,995

| (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	(1,927,778	)	15,439,072	$ 15,477

| (f) | Represents
the current yield as of report date. |
| --- | --- |
| • | Financial
futures contracts sold as of April 30, 2011 were as follows: |

Contracts	Issue	Exchange	Expiration	Notional Value	Unrealized Depreciation
104	10-Year U.S. Treasury Note	Chicago Board of Trade	June 2011	$ 12,325,427	$ (273,198	)

•
•	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
and derivative financial instruments)

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 semi-annual report.

BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. APRIL 30, 2011 5

Schedule of Investments (concluded) BlackRock MuniHoldings Quality Fund II, Inc. (MUE)

The following tables summarize the inputs used as of April 30, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

| Valuation
Inputs | Level 1 | Level 2 | | Total |
| --- | --- | --- | --- | --- |
| Assets: | | | | |
| Investments: | | | | |
| Long-Term Investments 1 | — | $ 454,364,440 | — | $ 454,364,440 |
| Short-Term Securities | $ 15,439,072 | 1,015,000 | — | 16,454,072 |
| Total | $ 15,439,072 | $ 455,379,440 | — | $ 470,818,512 |

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

| Valuation
Inputs | Level 1 | | | | Total | |
| --- | --- | --- | --- | --- | --- | --- |
| Derivative
Financial Instruments 2 | | | | | | |
| Liabilities: | | | | | | |
| Interest rate contracts | $ (273,198 | ) | — | — | $ (273,198 | ) |

2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

6 BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC. APRIL 30, 2011

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/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer of
		BlackRock MuniHoldings Quality Fund II, Inc.
	Date: June 24, 2011
	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/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock MuniHoldings Quality Fund II, Inc.
	Date: June 24, 2011
	By:	/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock MuniHoldings Quality Fund II, Inc.
	Date: June 24, 2011