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68 <br /> subject to the Modified Deed of Trust,the value of the collateral as a percentage of the outstanding principal <br /> amount of Bonds should be expected to decrease,which decrease may be material. <br /> NO REPRESENTATION IS MADE AS TO THE VALUE OF,OR THE AMOUNT OF PROCEEDS THAT MAY BE <br /> REALIZED FROM, THE COUNTY'S INTEREST IN THE MORTGAGED PROPERTY IN THE EVENT OF A <br /> FORECLOSURE. <br /> UNINSURED CASUALTY <br /> If all or any part of the Mortgaged Property is damaged or destroyed by any casualty or taken by <br /> any governmental authority,the County is obligated under the Trust Agreement to apply any Net Proceeds <br /> from insurance or condemnation (1)to repair, restore or rebuild the Mortgaged Property or(2)to provide <br /> for the redemption or defeasance of all, but not less than all, of the Bonds. If the County applies any Net <br /> Proceeds to repair, restore or rebuild the Mortgaged Property and such Net Proceeds are not sufficient to <br /> repair,restore or rebuild the Mortgaged Property to its condition prior to such damage,destruction or taking, <br /> then the value of the Mortgaged Property would be reduced. The Trust Agreement requires that certain <br /> insurance be maintained with respect to the Mortgaged Property. Such insurance may not,however, cover <br /> all perils to which the Mortgaged Property is subject. <br /> OUTSTANDING GENERAL OBLIGATION DEBT OF THE COUNTY <br /> The County has issued general obligation bonds and may issue general obligation bonds and notes <br /> in the future. The County will pledge its faith and credit and taxing power to the payment of its general <br /> obligation bonds and notes to be issued. See Appendix A,"THE COUNTY—DEBT INFORMATION" <br /> attached hereto. FUNDS WHICH MAY OTHERWISE BE AVAILABLE TO PAY BOND PAYMENTS OR ADDITIONAL <br /> PAYMENTS OR TO MAKE OTHER PAYMENTS TO BE MADE BY THE COUNTY UNDER THE TRUST AGREEMENT <br /> MAY BE SUBJECT TO SUCH FAITH AND CREDIT PLEDGE BY THE COUNTY AND THEREFORE MAY BE REQUIRED <br /> TO BE APPLIED TO THE PAYMENT OF ITS GENERAL OBLIGATION INDEBTEDNESS. <br /> ENVIRONMENTAL RISKS <br /> A Phase I environmental site assessment was performed on the site of the Northern Campus in <br /> 2018, which revealed no recognized environmental conditions. The sites of the Government Services <br /> Annex and the Emergency Operations Center have been owned by the County since 1968 and 2005, <br /> respectively. The sites of the Link Center and the District Attorney's office have been owned by the County <br /> since 1967 and 1992,respectively. The site of the Southern Campus has been owned by the County since <br /> 1992. The County is not aware of any material environmental contamination on such sites. <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 undertake <br /> 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 secured <br /> by the Mortgaged Property, thereby diluting the relative value of the collateral with respect to the 2020 <br /> Bonds and the Prior Bonds. In addition, remedies under the Trust Agreement and the Modified Deed of <br /> Trust are controlled by the Majority Owners. [Upon issuance of the 2020 Bonds, the Owners of the 2020 <br /> Bonds will be Majority Owners, but may not continue to be the Majority Owners if Additional Bonds are <br /> issued or if a portion of the 2020 Bonds are redeemed or discharged prior to maturity.][Upon issuance of <br /> the 2020 Bonds,the Owners of the 2020 Bonds will not own a majority of the Bonds.] <br /> 14 <br />