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RELATED PARTY TRANSACTIONS
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6 Months Ended |
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Feb. 28, 2014
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| Related Party Transactions | |
| RELATED PARTY TRANSACTIONS |
NOTE 6 RELATED PARTY TRANSACTIONS
On December 16, 2009, the Company entered into a Participation Agreement with 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 $25,000 and $38,600 of funding to the District pursuant to the Participation Agreement during the three months ended February 28, 2014 and 2013, respectively. The Company provided $69,500 and $39,600 of funding to the District pursuant to the Participation Agreement during the six months ended February 28, 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 February 28, 2014) and matured on December 31, 2013. The Company extended the maturity date of the loan to December 31, 2014. The $562,000 balance of the note receivable at February 28, 2014, includes borrowings of $229,300 and accrued interest of $332,700. |