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                                                                    EXHIBIT 10.7


                           [LOGO IMPERIAL BANK LOGO]

                           GENERAL SECURITY AGREEMENT
                  (Tangible and Intangible Personal Property)

This Agreement is executed on September 11, 1997, by New Arts Acquisition, Inc.
(hereinafter called "Obligor"), in consideration of financial accommodations
given, to be given or continued to Obligor or National Insurance Group, the
Obligor grants to IMPERIAL BANK (hereinafter called "Bank") a security interest
in (a) all property (i) delivered to Bank by Obligor, (ii) which shall be in
Bank's possession or control in any matter or for any purpose, (iii) described
below, (iv) now owned or hereafter acquired by Obligor of the type or class
described below and/or in any supplementary schedule hereto, or in any financing
statements filed by Bank and executed by or on behalf of Obligor; (b) the
proceeds, increase and products of such property, all accessions thereto, and
all property which Obligor may receive on account of such collateral which
Obligor will immediately deliver to Bank (collectively referred to as
"Collateral") to secure payment and performance of all of Obligor's present or
future debts or obligations to Bank, whether absolute or contingent (hereafter
referred to as "Debt"). Unless otherwise defined, words used herein have the
meanings given them in the California Uniform Commercial Code.


Collateral:

A.   VEHICLE, VESSEL, AIRCRAFT:
<TABLE>
<CAPTION>
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                                            Identification      License or
Year      Make/Manufacturer      Model      and Serial No.      Registration No.      New or Used
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<S>       <C>                    <C>        <C>                 <C>                   <C>





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Engine or other equipment: ______________________________________________________________________
(For aircraft - original ink signature on copy to FAA)

B.   DEPOSIT ACCOUNTS:

Type ______________________ Account Number _______________________ Amount $ _____________________

In name of _________________________________________Depository __________________________________
AND ALL EXTENSIONS OR RENEWALS THEREOF.

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C.   ACCOUNTS, INTANGIBLES AND OTHER: (Describe)

          1,000 shares common stock Pinnacle American Realty Tax
          Services, Inc. Certificate No. 1, in the name of New
          Arts Acquisition, Inc.

          1,000 shares common stock Pinnacle American Realty Tax
          Services of New York, Inc. Certificate No. 1, in the
          name of new Arts Acquisition, Inc.

The collateral not in Bank's possession will be located at:

[ ]  If checked, the Obligor is executing this Agreement as an Accommodation
Debtor only and the Obligor's liability is limited to the security interest
granted in the Collateral described herein. The party being accommodated is

                                                                   ("Borrower").

All the terms and provisions on the reverse side hereof are incorporated
herein as though set forth in full, and constitute a part of this Agreement.

                                   Signature
                                (indicate title,
        Name                     if applicable)                   Address
New Arts Acquisition, Inc.   By: /s/ Greg Saunders,       395 Oyster Point Blvd.
-------------------------    --------------------------   ----------------------
                                     EVP, CFO             Ste. 500 S. San
-------------------------    --------------------------   ----------------------
                                                          Francisco, CA 94080
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                         SECURITY AGREEMENT (CONTINUED)

Obligor represents, warrants and agrees:

     1.   Obligor will immediately pay (a) any Debt when due, (b) Bank's costs
of collecting the Debt, of protecting, insuring or realizing on Collateral, and
any expenditure of Bank pursuant hereto, including attorneys' fees and expenses,
with interest at the rate of 24% per year, or the rate applicable to the Debt,
whichever is less, from the date of expenditure and (c) any deficiency after
realization of Collateral.

     2.   Obligor will use the proceeds of any loan that becomes Debt hereunder
for the purpose indicated on the application therefore, and will promptly
contract to purchase and pay the purchase price of any property which becomes
Collateral hereunder from the proceeds of any loan made for that purpose.

     3.   As to all Collateral in Obligor's possession (unless specifically
otherwise agreed to by Bank in writing), Obligor will:

          (a)  Have, or has possession of the Collateral at the location
          disclosed to Bank and will not remove the Collateral from the
          location.

          (b)  Keep the Collateral separate and identifiable.

          (c)  Maintain the Collateral in good and saleable condition, repair
          it if necessary, clean, feed, shelter, water, medicate, fertilize,
          cultivate, irrigate, prune and otherwise deal with the Collateral in
          all such ways as are considered good practice by owners of like
          property, use it lawfully and only as permitted by insurance policies,
          and permit Bank to inspect the Collateral at any reasonable time.

          (d)   Not sell, contract to sell, lease, encumber or transfer the
          Collateral (other than inventory Collateral) until the Debt has been
          paid, even though Bank has a security interest in proceeds of such
          Collateral.

     4.   As to Collateral which is inventory and accounts, Obligor:

          (a)  May, until notice from Bank, sell, lease or otherwise dispose of
          inventory Collateral in the ordinary course of business only, and
          collect the cash proceeds thereof.

          (b)  Will, upon notice from Bank, deposit all cash proceeds as
          received in a demand deposit account with Bank, containing only such
          proceeds and deliver statements identifying units of inventory
          disposed of, accounts which gave rise to proceeds, and all
          acquisitions and returns of inventory as required by Bank.

          (c)  Will receive in trust, schedule on forms satisfactory to the
          Bank and deliver to Bank all non-cash proceeds other than inventory
          received in trade.

          (d)  If not in default, may obtain release of Bank's interest in
          individual units of inventory upon request, therefore, payments to
          Bank of the release price of such units shown on any Collateral
          schedule supplementary hereto, and compliance herewith as to proceeds
          thereof.

     5.   As to Collateral which are accounts, chattel paper, general
intangibles and proceeds described in 4(c) above, Obligor warrants, represents
and agrees:

          (a)  All such Collateral is genuine, enforceable in accordance with
          its terms, free from default, prepayment, defense and conditions
          precedent (except as disclosed and accepted by Bank in writing), and
          is supported by consecutively numbered invoices to, or rights
          against, the debtors thereon. Obligor will supply Bank with duplicate
          invoices or other evidence of Obligor's rights on Bank's request.

          (b)  All persons appearing to be obligated on such Collateral have
          authority and capacity to contract.

          (c)  All chattel paper is in compliance with law as to form, content
          and manner of preparation and execution and has been properly
          registered, recorded, and/or filed to protect Obligor's interest
          thereunder.

          (d)  If an account debtor shall also be indebted to Obligor on
          another obligation, any payment made by him not specifically
          designated to be applied on any particular obligation shall be
          considered to be a payment on the account in which Bank has a
          security interest. Should any remittance include a payment not on an
          account, it shall be delivered to Bank and, if no event of default
          has occurred, Bank shall pay obligor the amount of such payment.

          (e)  Obligor agrees not to compromise, settle or adjust any account or
          renew or extend the time of payment thereof without Bank's prior
          written consent.

     6.   Obligor owns all Collateral absolutely, and no other person has or
claims any interest in any Collateral, accept as disclosed to and accepted by
Bank in writing. Obligor will defend any proceeding which may affect title to or
Bank's security interest in any Collateral, and will indemnify and hold Bank
free and harmless from all costs and expenses of Bank's defense.

     7.   Obligor will pay when due all existing or future charges, liens or
encumbrances on and all taxes and assessments now or hereafter imposed on or
affecting the Collateral and, if the Collateral is in Obligor's possession, the
realty on which the Collateral is located.

     8.   Obligor will insure the Collateral with Bank as loss payee in form and
amounts with companies, and against risks and liability satisfactory to Bank,
and hereby assigns such policies to Bank, agrees to deliver them to Bank at
Bank's request, and authorizes Bank to make any claim thereunder, to cancel the
insurance on Obligor's default, and to receive payment of and endorse any
instrument in payment of any loss or return premium. If Obligor should fail to
deliver the required policy or policies to the Bank, Bank may, at Obligor's cost
and expense, without any duty to do so, get and pay for insurance naming as the
Insured, at Bank's option, either both Obligor and Bank, or only Bank, and the
cost thereof shall be secured by this Security Agreement, and shall be repayable
as provided in paragraph 1 above.

     9.   Obligor will give Bank any information it requires. All information at
any time supplied to Bank by Obligor (including, but not limited to, the value
and condition of Collateral, financial statements, financing statements, and
statements made in documentary Collateral) is correct and complete, and Obligor
will notify Bank of any adverse change in such information. Obligor will
promptly notify Bank of any change of Obligor's residence, chief executive
office or mailing address.

     10.  Bank is irrevocably appointed Obligor's attorney-in-fact to do any act
which Obligor is obligated hereby to do, to exercise such rights as Obligor may
exercise, to use such equipment as Obligor might use, to enter Obligor's
premises to give notice of Bank's security interest, and to collect Collateral
and proceeds and to execute and file in Obligor's name any financing statements
and amendments thereto required to perfect Bank's security interest hereunder,
all to protect and preserve the Collateral and Bank's rights hereunder. Bank
may:

          (a)  Endorse, collect and receive delivery or payment of instruments
          and documents constituting Collateral;
          
          (b)  Make extension agreements with respect to or affecting
          Collateral, exchange it for other Collateral, release persons liable
          thereon or take security for the payment thereof, and compromise
          disputes in connection therewith;
     
          (c)  Use or operate Collateral for the purpose of preserving
          Collateral or its value and for preserving or liquidating Collateral.

     11.  If more than one Obligor signs this Agreement, their liability is
joint and several. Any Obligor who is married agrees that recourse may be had
against separate property for the Debt. Discharge of any Obligor except for full
payment, or any extension, forbearance, change of rate of interest, or
acceptance, release or substitution of Collateral or any impairment or
suspension of Bank's rights against an Obligor, or any transfer of an Obligor's
interest to another shall not affect the liability of any other Obligor. Until
the Debt shall have been paid or performed in full, Bank's rights shall continue
even if the Debt is outlawed. All Obligors waive: (a) any right to require Bank
to proceed against any Obligor before any other, or to pursue any other remedy;
(b) presentment, protest and notice of protest, demand and notice of nonpayment,
demand or performance, notice of sale, and advertisement of sale; (c) any right
to the benefit of or to direct the application of any Collateral until the Debt
shall have been paid; (d) and any right of subrogation to Bank until Debt shall
have been paid or performed in full.

     12.  Upon default, at Bank's option, without demand or notice, all or any
part of the Debt shall immediately become due. Bank shall have all rights given
by law, and may sell, in one or more sales, Collateral in any county where Bank
has an office. Bank may purchase at such sale. Sales for cash or on credit to a
wholesaler, retailer or user of the Collateral, or at public or private auction,
are all to be considered commercially reasonable. Bank may require Obligor to
assemble the Collateral and make it available to Bank at the entrance to the
location of the Collateral, or a place designated by Bank.

          Defaults shall include:

          (a)  Any default by Obligor in the Credit Terms and Conditions
          executed by Obligor.

          (b)  Any default by National Insurance Group in any of its
          obligations to the Bank.

          (c)  Any actual or reasonably anticipated deterioration of the
          Collateral or in the market price thereof which causes it, in Bank's
          judgment, to become unsatisfactory as security.
        
          (d)  Any levy or seizure against Borrower or any of the Collateral.

          (e)  Death, termination of business, assignment for creditors,
          insolvency, appointment of receiver, or the filing of any petition
          under bankruptcy or debtor's relief laws of, by or against Obligor
          or Borrower or any guarantor of the Debt.

          (f)  Any warranty or representation which is false or is reasonably 
          believed in good faith by Bank to be false.

     13.  Bank's acceptance of partial or delinquent payments or the failure of
Bank to exercise any right or remedy shall not waive any obligation of Obligor
or Borrower or right of Bank to modify this Agreement, or waive any other
similar default.

     14.  On transfer of all or any part of the Debt, Bank may transfer all or
any part of the Collateral. Bank may deliver all or any part of the Collateral
to any Obligor at any time. Any such transfer or delivery shall discharge Bank
from all liability and responsibility with respect to such Collateral
transferred or delivered. This Agreement benefits Bank's successors and assigns
and binds Obligor's heirs, legatees, personal representatives, successors and
assigns. Obligor agrees not to assert against any assignee of Bank any claim or
defense that may exist against Bank. Time is of the essence. This Agreement and
supplementary schedules hereto contain the entire security agreement between
Bank and Obligor. Obligor will execute any additional agreements, assignments or
documents reasonably required by Bank to carry this Agreement into effect.

     15.  This Agreement shall be governed by and construed in accordance with
the laws of the State of California, to the jurisdiction of whose courts the
Obligor hereby agrees to submit. Obligor agrees that service of process may be
accompanied by any means authorized by California law. All words used herein in
the singular shall be considered to have been used in the plural where the
context and construction so require.



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