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Note 6 - Related Party Transactions
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3 Months Ended |
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Nov. 30, 2011
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| Note 6 - Related Party Transactions Disclosure | |
| Note 6 - Related Party Transactions |
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 November 30, 2011) and matures on December 31, 2012.
The $534,900 balance of the note receivable at November 30, 2011
includes borrowings of $229,300 and accrued interest of
$305,600. 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 during each of the three months
in the periods ended November 30, 2011 and 2010,
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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