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Note 6 - Related Party Transactions
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6 Months Ended |
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Feb. 29, 2012
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| Notes To Financial Statements | |
| Related Party Transactions Disclosure [Text Block] |
NOTE
6 RELATED PARTY TRANSACTIONS
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 February 29, 2012) and matures on December 31, 2012.
The $537,900 balance of the note receivable at February 29, 2012
includes borrowings of $229,300 and accrued interest of
$308,600. The $531,900 balance of the note receivable
at August 31, 2011 includes borrowings of $229,300 and
accrued interest of $302,600.
HP
A&M paid the Company $10,500 and $21,000 during each of the
three and six months in the periods ended February 29, 2012 and
February 28, 2011, respectively. This is to reimburse
the Company for 50% of the salary and expenses of a Company
employee that performs various farm management duties which are
for the benefit of HP A&M since HP A&M manages the farm
leases as described in Note 4 above.
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