Notes Payable

3 Months Ended

Dec. 31, 2013

Note 8 Notes payable

	December 31,		June 30,
	2013		2013

Note 1	$	200,000	$	-
Note 2		300,000		-
Note 3		1,000,000		-

	$	1,500,000	$	-

Note 1

On October 31, 2013, the Company issued a promissory note for $200,000 and received $200,000 cash in exchange. The note bears interest at 15% per annum, which is payable in monthly instalments and is secured by a life policy with a value of $2,000,000. The note becomes due upon the maturity of the security or March 30, 2017, whichever is earlier. During the six month period ended December 31, 2013 the Company paid interest of $5,000 (six months ended December 31, 2013 - $nil).

Note 2

On October 31, 2013, the Company issued a promissory note for $300,000 and received $300,000 cash in exchange. The note bears interest at 15% per annum, which is payable in monthly instalments and is secured by a life policy with a value of $2,000,000. The note becomes due upon the maturity of the security or March 30, 2017, whichever is earlier. During the six month period ended December 31, 2013 the Company paid interest of $7,500 (six months ended December 31, 2013 - $nil).

Note 3

On October 31, 2013, the Company issued a promissory note for $1,000,000 and received $1,000,000 cash in exchange. The note bears interest at 15% per annum, which is payable in monthly instalments and is secured by a life policy with a value of $2,000,000. The note becomes due upon the maturity of the security or March 30, 2017, whichever is earlier. During the six month period ended December 31, 2013 the Company paid interest of $25,000 (six months ended December 31, 2013 - $nil).

- 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+ Details

Crown Alliance Capital Ltd 10-Q