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RELATED PARTY TRANSACTIONS
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9 Months Ended |
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May 31, 2014
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| Related Party Transactions | |
| RELATED PARTY TRANSACTIONS |
On December 16, 2009, the Company entered into a Participation Agreement with Rangeview Metropolitan District (District), whereby the Company agreed to provide funding to the District in connection with the District joining the South Metro Water Supply Authority (SMWSA). The Company provided $50,000 of funding to the District pursuant to the Participation Agreement during each of the three months ended May 31, 2014 and 2013, respectively. The Company provided $130,000 and $89,500 of funding to the District pursuant to the Participation Agreement during the nine months ended May 31, 2014 and 2013, respectively. These amounts were expensed at the time of funding.
In 1995, the Company extended a loan to the District, a related party. The loan provided for borrowings of up to $250,000, is unsecured, bears interest based on the prevailing prime rate plus 2% (5.25% at May 31, 2014) and matured on December 31, 2013. The Company extended the maturity date of the loan to December 31, 2015. The $565,000 balance of the note receivable at May 31, 2014, includes borrowings of $229,300 and accrued interest of $335,700. |