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Child Care Resource Center, Inc. Notes to Financial Statements
Note 14 – Subsequent Events (continued)
Under this agreement, CCRC will make 180 monthly principal and interest payments of $38,422 from October 1, 2017 to September 1, 2032 to the Lender (Grandpoint Bank). Borrowings bear a fixed annual interest rate equal to 3.5% from October 1, 2017 to August 31, 2027 and equal to the product of the treasury constant maturity rate plus the applicable spread multiplied by the margin rate factor from September 1, 2027 to September 1, 2032. Treasury constant maturity rate is defined as the average rate for treasury constant maturities of a term of five years for the week priChild or to September 1, 2027, as reported in Release H.15 by the Board of Governors of the Federal Reserve Bank. Margin rate factor means the greater of (a) 1.0 and (b) the product of one minus the Maximum Federal Corporate Tax Rate multiplied by 1.53846. CCRC is also subject to various affirmative and negative covenants including but not limited to: maintaining CCRC’s Primary Banking Relationship with the Lender (Grandpoint Bank); maintaining average combined non-interest bearing deposit balances of at least $5,000,000, measured monthly with the Lender (Grandpoint Bank); and establishing a “Reserve Fund” with a balance no less than the Reserve Fund Requirement of $892,500.
CCRC has evaluated subsequent events through December 12, 2017, which is the date the financial statements were available to be issued.
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