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Note 7. Bank Indebtedness
3 Months Ended
Nov. 30, 2012
Notes  
Note 7. Bank Indebtedness

7.             BANK INDEBTEDNESS

 

There was no bank indebtedness under the Company’s line of credit as of November 30, 2012 or August 31, 2012.

 

Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest is calculated solely on the one month LIBOR rate plus 200 basis points.