NOTE C: LONG-TERM OBLIGATIONS

Long-term obligations consist of the following at December 31:


	2014		2013
	(In thousands)
Secured notes payable to bank under line of credit due July 10, 2017	$	11,681	$	9,299

The secured notes payable to bank evidence borrowings under a revolving credit facility which permits us to borrow up to the lesser of (i) $25,000,000, or (ii) an amount equal to 85% of the value of our eligible accounts receivable and up to 55% of the value of our eligible inventory. The Company’s borrowing base at December 31, 2014 was $17,000,000 as compared to $13,800,000, at December 31, 2013. Interest is payable at the bank’s prime rate (3.25% at December 31, 2014) plus 1.75% or, at the Company’s option but subject to certain limitations, at the bank’s LIBOR rate (0.25% at December 31, 2014) plus 3.25%. As of December 31, 2014, we were in compliance with all of our financial and other covenants under our line of credit agreement. The credit facility is scheduled to mature at July 10, 2017.

Effective November 13, 2014, the Company and the bank entered into the 19th Amendment to the credit line agreement (the “19th Amendment”), primarily to enable the Company to finance increases in inventories in fiscal 2015. To accomplish that purpose, that Amendment increases the maximum borrowings that will be available to us under the credit line in calendar 2015 to amounts up to (i) $27 million during the months of February and July 2015, (ii) $30 million during the months of March, April and May 2015: and (iii) $29 million during the month of June 2015, but in no event more than the sum of 50% to 55% of the value of the Company’s eligible inventories plus 85% of the value of its eligible accounts receivable. On the other hand, the maximum amount of borrowings that will be available to us under the credit line for the months of January, August, September, October, November and December 2015 will remain unchanged at $25 million, when, due to the seasonality of our business, customer orders usually decline. The bank has the right to increase or decrease these amounts, but only in the exercise of its good faith and reasonable business judgment.

At March 13, 2015, outstanding borrowings under the revolving credit facility totaled $18,390,000. Our credit facility borrowings are secured by substantially all of our consolidated assets and rank senior in priority to any other indebtedness that the Company may incur.