XML 149 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 6: Bank and Other Loans Payable | 12 Months Ended
--- | ---
Dec. 31, 2013
Notes |
Note 6: Bank and Other Loans Payable | 6) Bank and Other Loans Payable Bank loans payable are summarized as follows:
|  | December 31
|  | 2013 |  | 2012
6.34% note payable in monthly installments of $13,556 including principal and interest, collateralized by real property with a book value of approximately $498,000, due November 2017. |  | $ 612,068 |  | $ 748,612
5.75% note payable in monthly installments of $28,271 including principal and interest, collateralized by real property with a book value of approximately $6,033,000 due December 2014. |  | 3,509,944 |  | 3,643,192
Bank prime rate less .75% (2.50% at December 31, 2013) note payable in quarterly installments of $75,000 plus interest collateralized by shares of Security National Life Insurance Company stock, paid in full in 2013. |  | - |  | 225,000
Mark to market of interest rate swaps (discussed below) adjustment |  | 58,310 |  | 93,572
3.85% note payable in monthly installments of $79,468 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due June 2015. |  | 1,377,925 |  | 2,258,968
3.85% note payable in monthly installments of $86,059 including principal and interest, collateralized by shares of Security National Life Insurance Company stock, due December 2017. |  | 3,891,926 |  | -
4.40% note payable in monthly installments of $46,825 including principal and interest, collateralized by real property with a book value of approximately $12,450,000 due January 2026. |  | 8,500,000 |  | -
Revolving line-of-credit, interest payable at the prime rate minus .75% (2.5% as of December 31, 2013) secured by shares of Security National Life Insurance Company stock, matures June 2014. |  | - |  | 4,608,204
Other collateralized bank loans payable |  | 338,304 |  | 331,834
Other notes payable |  | 961 |  | 961
Total bank and other loans |  | 18,289,438 |  | 11,910,343
Less current installments |  | 5,849,926 |  | 6,266,765
Bank and other loans, excluding current installments |  | $ 12,439,512 |  | $ 5,643,578
During 2001, the Company entered into an interest rate swap instrument that effectively fixed the interest rate on the note payable at 6.34% per annum. Management considers the interest rate swap instrument an effective cash flow hedge against the variable interest rate on the bank note since the interest rate swap mirrors the term of the note payable and expires on the maturity date of the bank loan it hedges. The interest rate swap is a derivative financial instrument carried at its fair value. In the event the swap is terminated, any resulting gain or loss would be deferred and amortized to interest expense over the remaining life of the bank loan it hedged. In the event of early extinguishment of the hedged bank loan, any realized or unrealized gain or loss from the hedging swap would be recognized in income coincident with the extinguishment. At December 31, 2013, the fair value of the interest rate swap was an unrealized loss of $58,310 and was computed based on the underlying variable Libor rate plus 1.65%, or 2.65% per annum. The unrealized loss resulted in a derivative liability of $58,310 and has been reflected in accumulated other comprehensive income. The change in accumulated other comprehensive income from the interest rate swap in 2013 was $35,262. The fair value of the interest rate swap was derived from a proprietary model of the bank from whom the interest rate swap was purchased and to whom the note is payable. At December 31, 2012, the fair value of the interest rate swap was an unrealized loss of $93,572 and was computed based on the underlying variable Libor rate plus 1.65%, or 2.65% per annum. The unrealized loss resulted in a derivative liability of $93,572 and has been reflected in accumulated other comprehensive income. The change in accumulated other comprehensive income from the interest rate swap in 2012 was $24,240. The fair value of the interest rate swap was derived from a proprietary model of the bank from whom the interest rate swap was purchased and to whom the note is payable. The Company has a $2,000,000 revolving line-of-credit with a bank with interest payable at the prime rate minus .75% ( 2.50% at December 31, 2013), secured by the capital stock of Security National Life and maturing June 30, 2014, renewable annually. As of December 31, 2013, $697,001, was reserved for two outstanding letters of credit. As of December 31, 2013, there were no amounts outstanding under the revolving line-of-credit. The Company has a $15,000,000 revolving line-of-credit with a bank with interest payable at the variable overnight Libor rate plus 2% ( 2.1875% at December 31, 2013), secured by bond investments of the Company and maturing June 30, 2014. As of December 31, 2013, $91,000 was reserved for an outstanding letter of credit. As of December 31, 2013, there were no amounts outstanding under the revolving line-of-credit. The Company has a $2,150,000 revolving line-of-credit with a bank with interest payable at the prime rate plus 1.25% ( 4.5% at December 31, 2013), secured by the capital stock of Security National Life and maturing June 30, 2014. As of December 31, 2013, $1,250,000 was reserved for an outstanding letter of credit. As of December 31, 2013, there were no amounts outstanding under the revolving line-of-credit. The Company has entered into a Construction and Term Loan Agreement (“Agreement”) between Zions First National Bank, a national banking association, and Dry Creek Property Development, Inc., the Company’s wholly owned subsidiary. Under the terms of this Agreement the Company promises to pay Zions First National Bank the principal sum of $27,500,000 plus interest. These funds will be used for the construction of a 282-unit multifamily development in Sandy City Utah. As of December 31, 2013, the amount outstanding under this agreement was $0. The following tabulation shows the combined maturities of bank loans payable, lines of credit and notes and contracts payable:
2014 | $ 5,849,926
2015 | 1,748,708
2016 | 1,399,264
2017 | 1,504,037
2018 | 247,065
Thereafter | 7,540,438
Total | $ 18,289,438
Interest paid approximated interest expense in 2013, 2012 and 2011, which was $2,853,701, $3,744,293 and $1,961,249 respectively.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration