The district shall pay out of any funds or property of the district, except the interest and sinking fund:

1. (1) compensation and damages adjudicated in condemnation proceedings; and
2. (2) compensation for damage done to the property of any person or corporation in the construction and maintenance of improvements.

Acts 1971, 62nd Leg., p. 413, ch. 58, Sec. 1, eff. Aug. 30, 1971.