Orange County NC Website
Browse       Search
73 <br /> Undiscovered or future environmental contamination could have a material adverse effect on the <br /> value of the Mortgaged Property; however, the County is required under the Trust Agreement to <br /> undertake whatever environmental remediation may be required by law. <br /> ADDITIONAL BONDS <br /> The County may execute and deliver Additional Bonds under the Trust Agreement that are <br /> secured by the Mortgaged Property, thereby diluting the relative value of the collateral with respect to the <br /> 2019B Bonds, the 2019A Bonds and the 2018 Bonds. hi addition, remedies under the Trust Agreement <br /> and the Modified Deed of Trust are controlled by the Majority Owners. Upon issuance of the 2019B <br /> Bonds,the Owners of the 2019B Bonds will be Majority Owners,but may not continue to be the Majority <br /> Owners if Additional Bonds are issued or if a portion of the 2019B Bonds are redeemed or discharged <br /> prior to maturity. <br /> BANKRUPTCY <br /> Under current North Carolina law, a local governmental unit such as the County may not file for <br /> bankruptcy protection without(1)the consent of the LGC and(2)the satisfaction of the requirements of§ <br /> 109(c) of the United States Bankruptcy Code. If the County were to initiate bankruptcy proceedings with <br /> the consent of the LGC and satisfy the requirements of 11 U.S.C. § 109(c), the bankruptcy proceedings <br /> could have material and adverse effects on holders of the 2019B Bonds, including (a) delay in <br /> enforcement of their remedies, (b) subordination of their claims to claims of those supplying goods and <br /> services to the County after the initiation of bankruptcy proceedings and to the administrative expenses of <br /> bankruptcy proceedings and (c) imposition without their consent of a plan of reorganization reducing or <br /> delaying payment of the 2019B Bonds. The effect of the other provisions of the United States <br /> Bankruptcy Code on the rights and remedies of the holders of the 2019B Bonds cannot be predicted and <br /> may be affected significantly by judicial interpretation, general principles of equity(regardless of whether <br /> considered in a proceeding in equity or at law) and considerations of public policy. <br /> THE COUNTY <br /> GENERAL <br /> The County is located in the north-central portion of the State. The Town of Chapel Hill is the <br /> largest municipality in the County and is the home of The University of North Carolina at Chapel Hill. <br /> See Appendix A for a description of the County. <br /> FINANCIAL INFORMATION <br /> The financial statements of the County have been audited by certified public accountants for the <br /> fiscal year ended June 30, 2018. Excerpts from the financial statements of the County for the fiscal year <br /> ended June 30, 2018 are available in Appendix B hereto. Copies of the complete financial statements <br /> containing the unqualified report of the independent certified public accountants are available in the office <br /> of Gary Donaldson, Chief Financial Officer, 200 South Cameron St., Hillsborough, North Carolina <br /> 27278. <br /> 17 <br />