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88 <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 /> 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 Government Services Annex has been owned by the County since 1968; the site of <br /> the Link Center has been owned by the County since 1967; the site of the District Attorney's office has <br /> been owned by the County since 1992;the site of the Emergency Operations Center has been owned by the <br /> County since 2005; the site of the Southern Campus has been owned by the County since 1992; the site of <br /> the Efland EMS Center has been owned by the County since ; and the site of the Justice Center has <br /> been owned by the County since . The County is not aware of any material environmental <br /> contamination on such sites. A Phase I environmental site assessment was performed on the site of the <br /> Northern Campus in 2018, which revealed no recognized environmental conditions. [A Phase I <br /> environmental site assessment was performed on Crisis Diversion Center site in 20_, which revealed no <br /> recognized environmental conditions.] <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 2026A <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 2026A Bonds,the Owners of the 2026A <br /> Bonds will not 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 2026A 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 2026A Bonds. The effect of the other provisions of the United States Bankruptcy Code on <br /> 15 <br />