Note 7 - Loans Payable

9 Months Ended

May 31, 2013

7. LOANS PAYABLE

A summary of the principal balances of notes payable included in the consolidated balance sheet as of May 31, 2013:

Date	Principal
April 15, 2011	$	50,000
May 6, 2011		50,000
May 26, 2011		31,000
September 30, 2011		49,798
October 5, 2011		3,903
November 5, 2011		8,570
November 7, 2011		50,000
January 10, 2012		1,995
March 12, 2012		21,320
March 27, 2012		200,000
April 5, 2012		6,214
April 10, 2012		100,000
July 6, 2012		6,574
November 9, 2012		150,000
February 4, 2013		50,000
April 2, 2013		40,000
	$	819,374

At May 31, 2013, there was a balance of $819, 374 outstanding, due and payable to an unrelated third party. These notes each have a one year term, bearing interest at ten (10%) percent per annum and are payable in full on the anniversary date. The accrued interest for the nine month period ended May 31, 2013 totaled $53,912 in respect of these loans. The Company did not make any payments towards accrued interest in the period, leaving an amount of $95,819 reflected on the Company’s balance sheet as Accrued Interest.

Certain of these loans with a principal balance totaling $572,800 came due and payable in the current period at which time the lender verbally agreed to convert the loans to “demand” loans, with interest continuing to accrue until such time as they are paid in full.

- 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

Cortronix Biomedical Advancement Technologies Inc. 10-Q