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159 <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 Whitted Building in <br /> which revealed no recognized environmental conditions.][The site of the Whiffed Building has been <br /> owned by the County since .] <br /> [A Phase I environmental site assessment was performed on the site of the Blackwood Farm Park <br /> in , which revealed no recognized environmental conditions.][The site of the Blackwood Farm Park <br /> has been owned by the County since .] <br /> [A Phase I environmental site assessment was performed on the site of Culbreth Middle School in <br /> which revealed no recognized environmental conditions.][The site of Culbreth Middle School has <br /> been owned by the County since .] <br /> [A Phase I environmental site assessment was performed on the site of the Orange County Library <br /> in , which revealed no recognized environmental conditions.][The site of the Orange County Library <br /> has been owned by the County since .] <br /> [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 2021 <br /> Bonds. In addition, remedies under the Trust Agreement and the Deed of Trust are controlled by the <br /> Majority Owners. Upon issuance of the 2021 Bonds, the Owners of the 2021 Bonds will be Majority <br /> Owners,but may not continue to be the Majority Owners if Additional Bonds are issued. <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 2021 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 /> 15 <br />