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Note 6 - Related Party Transactions
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6 Months Ended |
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Feb. 28, 2013
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| Related Party Transactions Disclosure [Text Block] |
NOTE
6 – RELATED PARTY TRANSACTIONS
On
December 16, 2009, the Company entered into a Participation
Agreement with the District, whereby the Company agreed to
provide funding to the District in connection with the
District joining the South Metro Water Supply Authority
(“SMWSA”). During the three months ended February
28, 2013 and February 29, 2012 the Company provided $38,600
and $15,000 of funding to the District pursuant to the
Participation Agreement, respectively. During the six months
ended February 28, 2013 and February 29, 2012, the Company
provided $39,600 and $40,400 of funding to the District
pursuant to the Participation Agreement,
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 February 28, 2013)
and matures on December 31, 2013. The Company intends to
extend the maturity date of the loan to December 31, 2014.
The $549,900 balance of the note receivable at February 28,
2013, includes borrowings of $229,300 and accrued interest
of $320,600.
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