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86 <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 $ million, which is <br /> approximately %* of the aggregate principal amount of the 2024 Bonds and the outstanding Prior <br /> Bonds. This value is based in part on the County's own estimates, and the County has not commissioned <br /> or obtained any appraisals for the purpose of this valuation. The amount of proceeds received through <br /> foreclosure of the County's interest in the Mortgaged Property may be affected by a number of factors, <br /> including (1)the costs and expenses in enforcing the lien and security, (2)the condition of the Mortgaged <br /> Property, (3)the occurrence of any damage, destruction, loss or theft of the Mortgaged Property which is <br /> not repaired or replaced and for which there are not received from insurance policies or appropriated <br /> moneys from any risk management program, (4)problems relating to the paucity of alternative uses of the <br /> facilities arising from their design,zoning restrictions,use restrictions,easements and encumbrances on the <br /> Mortgaged Property 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 /> 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 /> *Preliminary,subject to change. <br /> 14 <br />