Agenda - 03-02-2006-8bOS - Laserfiche WebLink

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Enforceability The Trust Agreement, the Deed of Trust and the Financing Contract are subject to bankruptcy, insolvency, reorganization and other laws relating to or affecting the enforcement of creditors' rights and, to the extent that certain remedies under such instruments require or may require enforcement by a court, to such principles of equity as the court having jurisdiction may impose. The Financing Contract does not directly or indirectly or contingently obligate the County to make any payments beyond those appropriated in the sole discretion of the County in any Fiscal Year in which the Financing Contract is in effect. If the County fails to make Installment Payments required under the Financing Contract or there otherwise occurs an Event of Default under the Financing Contract, the Trustee may declare the entire unpaid principal portion of the Installment Payments to be immediately due and payable and enforce its security interest granted by the County or direct the Deed of Trust Trustee to institute foreclosure proceedings under the Deed of Trust and may in accordance with law dispose of such IVlortgaged Property and apply the proceeds of any such disposition toward any balance owing by the County under the Financing Contract to make Installment Payments. No assurance can be given that such proceeds will be sufficient to pay the principal of and interest with respect to the 2006A Certificates. In addition, Section 160A-20 of the North Carolina General Statutes provides that no deficiency judgment may be rendered against the County for breach of any contractual obligation authorized under Section 160A-20. See "SUMMARY OF PRINCIPAL LEGAL DOCUl1'IENTS -The Financing Contract -Defaults and Remedies under Financing Contract" and "- County's Limited Obligation" in Appendix B hereto and the caption "CERTAIN RISKS OF CERTIFICATE OWNERS-Insufficiency of Collateral and Linritations on the Cowity's Obli6ation" herein. Additional Certificates Under the conditions described in the Trust Agreement and without the approval or consent of the C}wners, the Company may execute and deliver Additional Certificates secured by a lien on the Mortgaged Property on a parity with the lien securing the 2006A Certificates to pay the costs (including financing costs) of (1}completing, expanding or improving the Facilities, (2) refunding any 2006A Certificates or Additional Certificates, (3}paying financing costs or establishing resen~es in connection with the issuance of Additional Certificates, (4) any other purpose allowed by law, or (5} any combination of those purposes. See "SU11'INTARY OF PRINCIPAL LEGAL DOCUMENTS -The Trust Agreement -Additional Certificates" in Appendix B hereto. CERTAIN RISKS OF CERTIFICATE O1~'NERS Insufficiency of Collateral and Limitations on the County's Obligation The Financing Contract provides for payment of Installment Payments by the County to pay the principal and interest with respect to the 2006A Certificates and any Additional Certificates as the same shall become due. Upon failure by the County to make such Installment Payments (whether as a result of an Event of Non-Appropriation or otherwise) or upon the C-883836v4 13361.00022 1