2014-154A. - Laserfiche WebLink

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MANCIL'S TRACTOR SERVICE, INC. Notes to Financial Statements December 31, 2013 NOTE 9: LEASE AGREEMENTS (continued) Lessor Agreements The Company owns a parcel of land adjacent to its office in Stuart, Florida. On October 13, 2009 a land lease agreement was signed between the Company and a tenant for a five year lease term. The five-year non-cancellable lease commenced on November 1, 2009 and expires on October 31, 2014. This lease was assumed by a new lessee who purchased it from the prior lessee on July 13, 2011. All terms remain as in original lease. The monthly rent payments under this lease are $750 per month and the total rental income received under the lease was $9,000 for the twelve months ended December 31, 2013. The following is a schedule, by years, of future minimum rental income under the lease at December 31: 2014 $ 7,500 NOTE 10: LINES OF CREDIT On March 1, 2011 the Company signed an agreement with PNC Bank,National Association to provide borrowings under a revolving line of credit(LOC). The original maturity date of the LOC was March 1, 2012, but it was renewed until March 2, 2013. The LOC contains conversion to term loan provision that allows conversion of all or any part of the LOC to an amortizing term loan, with or without cause, upon providing sixty (60)days written notice to the Company. As such,the Company classifies the portion of the LOC that has remained outstanding for more than twelve(12)months as a long-term liability and the remaining balance as a short-term liability in its balance sheet. The conversion provision is included in the total current portion of long-term debt amount presented. The details relative to this LOC at December 31,2013 are as follows: Outstanding Letters of Current Long-term Maturity Maximum Principal Credit Amount Portion of Portion of Date Availability Balance Issued Available Debt Debt 3/1/14 $ 150,000 $ 43,771 $ - $ 106,229 $ 43,771 $ - Monthly payments of accrued interest are due on any outstanding balance beginning on April 1, 2011 or thereafter. The interest rate is variable based on the highest Prime Rate as published in the "Money Rates" section of the Wall Street journal plus a 1%-margin. At December 31, 2013,the interest rate was 4.25%. - 15 -