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86 <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 /> The site of the Whitted Building has been owned by the County since 1975. The site of the <br /> Blackwood Farm Park has been owned by the County since 2001. The site of the Orange County Library <br /> has been owned by the County since 2010. Culbreth Middle School has been owned by the County since <br /> 2014 and has been operated as a public school in the County since 1969. Orange Middle School has been <br /> owned by the County since 2023 and has been operated as a public school in the County since 1968. New <br /> Hope Elementary School has been owned by the County since 2023 and has been operated as a public <br /> school in the County since 1991. Pathways Elementary School has been owned by the County since 2023 <br /> and has been operated as a public school in the County since 2000. Orange High School has been owned <br /> by the County since 2023 and has been operated as a public school in the County since 1963. Ephesus <br /> Elementary School has been owned by the County since 2023 and has been operated as a public school in <br /> the County since 1972. <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 2025 <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 2025 Bonds, the Owners of the 2025 <br /> Bonds will own a majority of the Bonds. <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 2025 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 /> 15 <br />