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67 <br /> CERTAIN RISKS OF 2020 BOND OWNERS <br /> INSUFFICIENCY OF PAYMENTS <br /> If the County fails to pay any payments on the Bonds as the same become due or if another event <br /> of default occurs under the Trust Agreement, the Trustee may accelerate the principal with respect to the <br /> Bonds, direct the Deed of Trust Trustee to foreclose on the Mortgaged Property under the Modified Deed <br /> of Trust,take possession of the Mortgaged Property and attempt to dispose of the Mortgaged Property. See <br /> "THE DEED OF TRUST" in Appendix C hereto. Zoning restrictions and other land use factors relating <br /> to the Mortgaged Property may limit the use of the Mortgaged Property and may affect the proceeds <br /> obtained on any disposition by the Deed of Trust Trustee. THERE CAN BE NO ASSURANCE THAT THE <br /> MONEYS AVAILABLE IN THE FUNDS AND ACCOUNTS HELD BY THE TRUSTEE AND THE PROCEEDS OF ANY <br /> SUCH DISPOSITION OF THE MORTGAGED PROPERTY WILL BE SUFFICIENT TO PROVIDE FOR THE PAYMENT OF <br /> THE PRINCIPAL AND INTEREST WITH RESPECT TO THE BONDS. SECTION 160A-20(f) OF THE GENERAL <br /> STATUTES OF NORTH CAROLINA PROVIDES THAT NO DEFICIENCY JUDGMENT MAY BE RENDERED AGAINST <br /> THE COUNTY FOR ANY AMOUNTS THAT MAY BE OWED BY THE COUNTY UNDER THE TRUST AGREEMENT, <br /> AND THE TAXING POWER OF THE COUNTY IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY OR <br /> CONTINGENTLY TO SECURE ANY MONEYS OWING BY THE COUNTY UNDER THE TRUST AGREEMENT. THE <br /> REMEDIES AFFORDED TO THE TRUSTEE AND THE OWNERS OF THE BONDS ON A DEFAULT BY THE COUNTY <br /> UNDER THE TRUST AGREEMENT ARE LIMITED TO THOSE OF A SECURED PARTY UNDER THE LAWS OF THE <br /> STATE OF NORTH CAROLINA,INCLUDING FORECLOSING ON THE MODIFIED DEED OF TRUST. <br /> RISK OF NONAPPROPRIATION <br /> The appropriation of moneys to make payments pursuant to the Trust Agreement is within the sole <br /> discretion of the Board of Commissioners of the County. If the Board of Commissioners fails to appropriate <br /> such moneys, the only sources of payment for the Bonds will be the moneys, if any, available in certain <br /> funds and accounts held by the Trustee under the Trust Agreement and the proceeds of any attempted <br /> foreclosure on the County's interest in the Mortgaged Property under the Modified Deed of Trust. <br /> VALUE OF COLLATERAL <br /> The County's estimated value of the Mortgaged Property (as further described under the caption <br /> above "THE PLAN OF FINANCE — The Mortgaged Property") is at least $[35.9] million, which is <br /> approximately [_]*of the aggregate principal amount of the 2020 Bonds and the outstanding Prior Bonds. <br /> This value is based in part on the County's own estimates,and the County has not commissioned or obtained <br /> any appraisals for the purpose of this valuation. The amount of proceeds received through foreclosure of <br /> the County's interest in the Mortgaged Property may be affected by a number of factors, including(1)the <br /> costs and expenses in enforcing the lien and security, (2) the condition of the Mortgaged Property, (3)the <br /> occurrence of any damage, destruction, loss or theft of the Mortgaged Property which is not repaired or <br /> replaced and for which there are not received from insurance policies or appropriated moneys from any risk <br /> management program, (4)problems relating to the paucity of alternative uses of the facilities arising from <br /> their design, zoning restrictions,use restrictions, easements and encumbrances on the Mortgaged Property <br /> and(5) environmental problems and risks with respect to the Mortgaged Property. <br /> The Trust Agreement permits the issuance of Additional Bonds without regard to the value of the <br /> Mortgaged Property, and the Modified Deed of Trust allows for up to $200 million in principal amount of <br /> Bonds to be secured thereby. To the extent that Additional Bonds are issued and no additional property is <br /> 'Preliminary,subject to change. <br /> 13 <br />