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NOTE 7 – NOTES PAYABLE
9 Months Ended
Sep. 30, 2011
Notes to Financial Statements 
NOTE 7 – NOTES PAYABLE

 

   09/30/11  12/31/10
 Notes payable consist of the following for the periods ended;          
           
Peacock Settlement Note of 2008 resettled three existing notes as stated on
November 26, 2008 with a simple interest rate with a simple interest rate
of 3% per annum. Note holder has right on 30 days written notice
to demand stock totaling no more than 9.9% of total outstanding
shares current and not allowing cumulative total to exceed 30%
adjusting with new issuanced for dilutive purposes		  $357,430   $357,430 
           
Debentures at 10%, unsecured, were to be convertible into
common shares at the option of the holder, all debentures
are currently in default		   10,383    10,383 
           
Convertible note from a related party dated June 28, 2004 with a
stated rate of 10% per annum payable quarterly. The holder has
the right to convert upon written request at 80% of market
of the five previous trading days of the conversion request		   30,000    30,000 
           
Convertible note payable, accrues with an interest at a Rate
of 6.0% per annum, two-year term. Currently in default		   42,988    42,988 
           
Short term unsecured working capital demand notes, with
stated interest rate of 10%. Reclassified back into notes
payable after the Company confirmed status during the last
fiscal audit of the 2010 year-end		   20,000    0 
           
Virginia Roberts investment was originally stated as Minority Interest
investment in 2003 financials, was reclassed in 2004 to secured demand
note against Canyon Shadows Investment and entitled note holder to
21% if Investment distributions, at no less than $5,000 per quarter		   200,000    200,000 
           
Total Notes Payable   660,801    640,801 
           
Less Current Portion   660,801    640,801 
           
Long Term Notes Payable  $0   $0 
           
The aggregate principal maturities of notes payable are as follows:          
All are classified as short term by the Company          
           
During these periods, the Company was in default on two notes
payable. The note holders have not taken any legal action against the
Company as permitted by the agreements. Accrued interest on
these notes totaled:		  $213,308   $184,376