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<br />( <br /> <br />7. The District is authorized to execute and perfect a <br />security interest in the form provided by the State in the <br />revenues resulting from the water allotment contract <br />assessments levied for the purpose of repayment of the <br />contract loan to the State. Such security interest shall be <br />signed by the President and Secretary of the District. Such <br />security interest shall be deemed to include any future water <br />allotment contract assessment revenues obtained for repayment <br />of the contract loan. The District shall insure that the <br />State has first priority interest in such revenues. The <br />District is authorized to establish a separate fund account, <br />entitled "Loan Repayment Account," at a state or national <br />bank or savings and loan association insured by the federal <br />government, and to deposit into such account all revenues <br />resulting from the water allotment contract assessments made <br />to repay the contract loan to the State, and to pay such <br />monies to the State as required by the contract. The <br />District shall insure that these revenues are not used for <br />any other purpose. <br /> <br /> <br />INDER OF PAGE INTENTIONALLY LEFT BLANK <br /> <br />-3- <br />