(a) The Authority acknowledges notice of, and consents to, the security interest granted over the Contractor's rights under the Contract effected by the Contractor in favour of the Senior Lenders under the Security Document.16
(b) The Authority confirms that it has not received notice of any other security interest granted over the Contractor's rights under the Contract.17
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16 This should restrict the ability of the Senior Lenders to transfer in breach of Clause 8 (Novation).
17 Departments will sometimes argue that they may not be aware of such notices. The correct view is that they should be and so should be able to make this confirmation.