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I .- LOAN CONTRACT Lower Arkansas Water Management Association feasibility Study timely manner and as required by the terms and conditions herein to assure repayment of the project loan to the State. In the event that the assessment(s) levied by the Borrower, or the revenues resulting therefrom, are or become insufficient to assure repayment to the State as required by the terms and conditions herein, then the Borrower, upon written notice thereof from the State, shall immediately take all necessary action consistent with its By-laws, including but not limited to additional assessments, to raise sufficient revenue to assure repayment of the feasibility study loan to the State. 9. (SECURITY INTEREST PROVISIONS): 9a, (Borrower Pledges Assessments to Repay the Loan): The Borrower agrees that the specific revenues to be pledged to repay the State shall include, without being limited to, an assessment levied for that purpose as authorized by Resolution of the Borrower. 9b. (Assessment Revenues for this Loan are to be kept Separate): The Borrower hereby pledges such assessment revenues to repay the State loan, agrees that these revenues will be set aside and kept separate from other Borrower revenues, warrants that these revenues will not be used for any other purpose, and agrees to provide the State a perfected security interest such that the State has priority over all other competing claims for such secured revenues. 9c. (Establish Security Interest in the Assessment Revenues): Such security interest shall be in the form provided by the State irrevocably pledging such revenues on the date of execution of this contract. Copies of such security interest (Uniform Commercial Code--Security Agreement and Uniform Commercial Code--Financing Statement) shall be attached hereto and incorporated herein as Appendix E and F, respectively. The security interest of the Borrower is a condition precedent to State performance on this contract. 9d. (Security Interest Continuation Statement required at end of Forth Year): During the fourth year that this contract is in effect, the Borrower shall have the obligation to provide the State with a fully and properly executed Continuation Statement (Form UCC 3) of the Security Interest (Security Agreement and Financing Statement, Appendix E and F) required by this paragraph. Said Continuation Statement must be delivered to the State in such a manner that the State has actual possession of the fully and properly executed form no less than 30 days before the end of the fourth year in which this contract is effective. Page 7 of 12 Pages ..01;. ..... .