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Capital Notes
6 Months Ended
Jun. 30, 2012
Capital Notes [Abstract]  
Capital Notes

Note 6 – Capital Notes

In connection with a private placement of unregistered debt securities, Financial issued capital notes in the amount $7,000,000 (the "Notes") in 2009. The Notes bore interest at the rate of 6% per year with interest payable quarterly in arrears. During the three months ended March 31, 2012, Financial made a final interest payment on the Notes totaling $105,000. No principal payments were due until the Notes matured on April 1, 2012. Financial paid the Notes in full on or about this date with proceeds from the 2012 Offering described below.

Financial currently is conducting a private placement of unregistered debt securities (the "2012 Offering") pursuant to which Financial is authorized to issue up to $12,000,000 in principal of notes (the "2012 Notes"). As of June 30, 2012, Financial had issued 2012 Notes in the amount $9,627,000. The 2012 Notes bear interest at the rate of 6% per year with interest payable quarterly in arrears. The first quarterly interest payment on the 2012 Notes was due on July 1, 2012 and paid on or about June 29, 2012. No principal payments are due until the Notes mature on April 1, 2017 unless the Notes are called in full or in part after April 1, 2013.

On the maturity date or a call date, the principal and all accrued but unpaid interest on the Notes will be due and payable. Although Financial is authorized to sell up to $12,000,000 in 2012 Notes, Financial has determined that it will close the 2012 Offering at such time as it has sold $10,000,000 in principal of 2012 Notes, or it terminates the offering, or, whichever occurs first.