OTHER-2024-032-Preliminary official statement

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THE COUNTY FOR ANY AMOUNTS THAT MAY BE OWED BY THE COUNTY UNDER THE TRUST AGREEMENT, AND THE TAXING POWER OF THE COUNTY IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY OR CONTINGENTLY TO SECURE ANY MONEYS OWING BY THE COUNTY UNDER THE TRUST AGREEMENT , THE REMEDIES AFFORDED TO THE TRUSTEE AND THE OWNERS OF THE BONDS ON A DEFAULT BY THE COUNTY UNDER THE TRUST AGREEMENT ARE LIMITED TO THOSE OF A SECURED PARTY UNDER THE LAWS OF THE STATE OF NORTH CAROLINA, INCLUDING FORECLOSING ON THE MODIFIED DEED OF TRUST . RISK OF NONAPPROPRIATION The appropriation of moneys to make payments pursuant to the Trust Agreement is within the sole discretion of the Board of Commissioners of the County . If the Board of Commissioners fails to appropriate such moneys, the only sources of payment for the Bonds will be the moneys, if any, available in certain funds and accounts held by the Trustee under the Trust Agreement and the proceeds of any attempted foreclosure on the County ' s interest in the Mortgaged Property under the Modified Deed of Trust . VALUE OF COLLATERAL The County ' s estimated value of the Mortgaged Property (as further described under the caption above "THE PLAN OF FINANCE — The Mortgaged Property") is at least $ million, which is approximately % * of the aggregate principal amount of the 2024 Bonds and the outstanding Prior Bonds . This value is based in part on the County ' s own estimates , and the County has not commissioned or obtained any appraisals for the purpose of this valuation . The amount of proceeds received through foreclosure of the County ' s interest in the Mortgaged Property may be affected by a number of factors , including ( 1 ) the costs and expenses in enforcing the lien and security, (2) the condition of the Mortgaged Property, (3 ) the occurrence of any damage, destruction, loss or theft of the Mortgaged Property which is not repaired or replaced and for which there are not received from insurance policies or appropriated moneys from any risk management program, (4 ) problems relating to the paucity of alternative uses of the facilities arising from their design, zoning restrictions , use restrictions , easements and encumbrances on the Mortgaged Property and (5 ) environmental problems and risks with respect to the Mortgaged Property . The Trust Agreement permits the issuance of Additional Bonds without regard to the value of the Mortgaged Property, and the Modified Deed of Trust allows for up to $200 million in principal amount of Bonds to be secured thereby . To the extent that Additional Bonds are issued and no additional property is subject to the Modified Deed of Trust, the value of the collateral as a percentage of the outstanding principal amount of Bonds should be expected to decrease, which decrease may be material . NO REPRESENTATION IS MADE AS TO THE VALUE OF, OR THE AMOUNT OF PROCEEDS THAT MAY BE REALIZED FROM, THE COUNTY ' S INTEREST IN THE MORTGAGED PROPERTY IN THE EVENT OF A FORECLOSURE . UNINSURED CASUALTY If all or any part of the Mortgaged Property is damaged or destroyed by any casualty or taken by any governmental authority, the County is obligated under the Trust Agreement to apply any Net Proceeds from insurance or condemnation ( 1 ) to repair, restore or rebuild the Mortgaged Property or (2 ) to provide for the redemption or defeasance of all, but not less than all, of the Bonds . If the County applies any Net Proceeds to repair, restore or rebuild the Mortgaged Property and such Net Proceeds are not sufficient to repair, restore or rebuild the Mortgaged Property to its condition prior to such damage, destruction or taking, then the value of the Mortgaged Property would be reduced . The Trust Agreement requires that certain * Preliminary, subject to change . 14