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Hypothec |
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Hy`poth´ec
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| The credit facility is secured by a first ranking hypothec on three income-producing properties having a total net carrying amount of $46,149 and a second ranking hypothec on two income-producing properties having a total net carrying amount of $243,201. In addition, the Company has issued an irrevocable letter of credit amounting to $389,282, along with a first rank movable hypothec, which can be subordinated in regard to lending institutions, of $1,000,000 covering the Company's tangible assets located in the rented premises. The Corporation also had an authorized operating line of credit of $500,000, secured by a first ranking movable hypothec on accounts receivable and inventories, which was unused as of September 30, 2005. |
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