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

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occurrence of any Event of Default under the Financing Contract, the Trustee lnay declare the principal with respect to the 2a06A Certificates and any Additional Certificates to be immediately due and payable, may direct the Deed of Trust Trustee to foreclose on the Mortgaged Property pursuant to the Deed of Trust and to enter, take possession of and attempt to dispose of the Mortgaged Property {subject to applicable law), and may apply the net proceeds received on account of such disposition to payment of amounts due under the 2006A Certificates and any Additional Certificates. See "SLTMM.~RY OF PRINCIPAL LEGAL DOCUMENTS - The Financing Contract" in Appendix B hereto. The amount of such net proceeds may be affected by {1) the condition of the Mortgaged Property and {2) the occurrence and extent of any damage, destruction, loss or theft of the l~lortgaged Property which is not repaired or replaced and for which there are not received or appropriated moneys from insurance or from any risk management program which may be in effect with respect to the Mortgaged Property. Various factors could negatively affect the value of the I~Iortgaged Property upon foreclosure. Examples of such factors include zoning restrictions on, encumbrances on, and restrictive covenants with respect to, the Mortgaged Property, all of t~~hich could negatively affect its value. [_~ Phase I Enviro~unental Assessment dated `was conducted on the Mortgaged Property=]. Although the assessment did not reveal any significant environmental concerns with the IVlortgaged Property, undiscovered or future envirolunental contamination of the Mortgaged Property could have a material adverse effect on its value. There can be no assurance that the moneys available in the funds and accounts held by the Trustee and the proceeds of any such disposition of the Mortgaged Property will be sufficient to provide for the payment of the principal and interest with respect to the 20{~6A Certificates. Section 160A-20 of the General Statutes of North Carolina provides that no deficiency judgment may he rendered against the County for breach of any contractual obligation authorized under Section 160A-20, and the taxing power of the County is not and may not be pledged directly or indirectly to secure any moneys owing by the County under the Contract. The remedies afforded to the Trustee and the Owners of the 200&A Certificates on a default by the County under the Financing Contract are limited to those of a secured party under the laws of the State of North Carolina, including foreclosing on the Mortgaged Property under the Deed of Trust. THE 20Q6A CERTIFICATES ARE NOT A DEBT OR GENERAL OBLIGATION OF THE COUNTY OR PAYABLE FROM ANY ASSETS OF THE COMPANY OR PAYABLE FROM ANY ASSETS OF THE COUNTY'S DIRECTORS, OFFICERS, AGENTS OR E11~IPLOYEES. Partial Prepa~~ient If all or any part of the Mortgaged Property is partially or totally damaged or destroyed by any casualty or taken by any governmental authority, the County has the option under certain circumstances under the Financing Contract to apply any Net Proceeds from insurance or condemnation to prepay the 20[l6A Certificates in part, with no restoration of the 1Vlortgaged Property. This partial prepayment could have adverse consequences for the remaining Owners of the 2006A Certificates. If the County does not make the Installment Payments, the only other source of payment of the 2006A Certificates will be funds, if any, held by the Trustee under the C-883836v4 13361.00022 11