Orange County NC Website
Browse       Search
69 <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 2020 Bonds, including (a) delay in enforcement <br /> of their remedies, (b) subordination of their claims to claims of those supplying goods and services to the <br /> County after the initiation of bankruptcy proceedings and to the administrative expenses of bankruptcy <br /> proceedings and (c) imposition without their consent of a plan of reorganization reducing or delaying <br /> payment of the 2020 Bonds. The effect of the other provisions of the United States Bankruptcy Code on <br /> the rights and remedies of the holders of the 2020 Bonds cannot be predicted and may be affected <br /> significantly by judicial interpretation, general principles of equity(regardless of whether considered in a <br /> 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. See <br /> 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, 2019. Excerpts from the financial statements of the County for the fiscal year <br /> ended June 30, 2019 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 27278. <br /> LEGAL MATTERS <br /> LITIGATION <br /> [County to confirm] To the best of the knowledge of the County, no litigation is now pending or <br /> threatened against or affecting the County which seeks to restrain or enjoin the authorization, execution or <br /> delivery of the 2020 Bonds, the Trust Agreement or the Modified Deed of Trust, or which contests the <br /> County's creation, organization or corporate existence, or the title of any of the present officers thereof to <br /> their respective offices or the authority or proceedings for the County's authorization, execution and <br /> delivery of the 2020 Bonds,the Trust Agreement or the Modified Deed of Trust,or the County's authority <br /> to carry out its obligations thereunder or which would have a material adverse impact on the County's <br /> condition, financial or otherwise. <br /> OPINIONS OF COUNSEL <br /> Legal matters related to the execution, sale and delivery of the 2020 Bonds are subject to the <br /> approval of Sanford Holshouser LLP. Certain legal matters will be passed upon for the County by its <br /> counsel, John L. Roberts, Esq., and for the Underwriters by their counsel, McGuireWoods LLP. The <br /> opinion of Sanford Holshouser LLP, as Bond Counsel, substantially in the form set forth in Appendix D <br /> hereto,will be delivered at the time of the delivery of the 2020 Bonds. <br /> 15 <br />