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<br /> except to the extent payable from Bond proceeds,investment earnings,Net Proceeds related to casualty or
<br /> condemnation proceeds,or amounts derived from the enforcement of remedies on default.
<br /> As security for the 2019B Bonds, the Prior Bonds and any additional bonds issued under the
<br /> Trust Agreement on a parity therewith (the "Additional Bonds" and, together with the 2019B Bonds and
<br /> the Prior Bonds,the"Bonds"),the County has executed and delivered to a deed of trust trustee(the"Deed
<br /> of Trust Trustee"), for the benefit of the Trustee, a Deed of Trust dated as of June 1, 2018 (the "2018
<br /> Deed of Trust"), and a Deed of Trust Supplement dated as of May 1, 2019 (the "First Deed of Trust
<br /> Supplement"), supplementing the 2018 Deed of Trust(as so supplemented,the"Existing Deed of Trust"),
<br /> granting a lien of record on the site of the County's Government Services Annex located in Hillsborough,
<br /> North Carolina (the "Government Services Annex"), the County's Meadowlands Emergency Operations
<br /> Center located in Hillsborough, North Carolina (the "Emergency Operations Center"), the County's
<br /> Visitors Center in Chapel Hill, North Carolina (the "Visitors Center") and land owned by the County in
<br /> Hillsborough, North Carolina, which will be the site of the County's Northern Campus (the "Northern
<br /> Campus"), the County's Link Center (the "Link Center"), the County District Attorney's office building
<br /> (the "District Attorney's Building"), and the real estate improvements thereon and appurtenances thereto
<br /> (collectively, the "Existing Mortgaged Property"), all as more particularly described in the Existing Deed
<br /> of Trust, subject only to Permitted Encumbrances (as defined in Appendix C hereto). As security for the
<br /> Bonds and in connection with the issuance of the 2019B Bonds, the County will execute and deliver to
<br /> the Deed of Trust Trustee, for the benefit of the Trustee, a Deed of Trust Supplement #2 dated as of
<br /> November 1, 2019 (the "Second Deed of Trust Supplement"), supplementing the Existing Deed of Trust
<br /> (as so supplemented, the "Modified Deed of Trust"), granting a lien of record on the site of the County's
<br /> Southern Campus, located in Chapel Hill, North Carolina (the "Southern Campus"), and the real estate
<br /> improvements thereon and appurtenances thereto (the "2019B Mortgaged Property" and, together with
<br /> the Existing Mortgaged Property,the"Mortgaged Property"), subject only to Permitted Encumbrances.
<br /> The Modified Deed of Trust authorizes future obligations evidenced by Additional Bonds as
<br /> described below, to be secured by the Modified Deed of Trust, provided that the total amount of present
<br /> and future obligations secured by the Modified Deed of Trust at any one time does not exceed
<br /> $200,000,000 and such future obligations are incurred not later than 30 years from the date of the 2018
<br /> Deed of Trust.
<br /> In addition, the County will grant to the Trustee a lien on and security interest in all moneys held
<br /> by the Trustee in the funds and accounts created under the Trust Agreement.
<br /> If a default occurs under the Trust Agreement, the Trustee is authorized to direct the Deed of
<br /> Trust Trustee to foreclose on the Mortgaged Property and apply the proceeds received as a result of any
<br /> such foreclosure to the payment of the amounts due to the owners of the 2019B Bonds and the Prior
<br /> Bonds, subject to the rights of the owners of any other Bonds. No assurance can be given that any such
<br /> proceeds will be sufficient to pay the principal of and the interest on the Bonds. In addition, no
<br /> deficiency judgment can be rendered against the County if the proceeds from any such foreclosure sale
<br /> (together with other funds that may be held by the Trustee under the Trust Agreement) are insufficient to
<br /> pay the Bonds in full. The 2019B Bonds do not constitute a pledge of the County's faith and credit within
<br /> the meaning of any constitutional provision. See the caption "SECURITY AND SOURCES OF
<br /> PAYMENT OF 2019B BONDS"herein.
<br /> THE 2019B BONDS
<br /> The 2019B Bonds will be dated as of their date of delivery. Interest is payable on April 1 and
<br /> October 1 of each year, beginning October 1, 2020, at the rates set forth on the inside front cover page of
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