Note 7. – Long-term Debt

Long-term debt consisted of the following (in thousands):


	November 30,			February 28,
	2013			2013
Note payable to Community & Southern Bank; interest rate at LIBOR plus 400 basis points as defined per the loan agreement, minimum 5.00%, 5% rate applied. Monthly principal payments of $0 plus accrued interest, payable through August 2014; collateralized by all assets of the Company. On September 6^th, this entire liability was assumed by Community and Southern Bank. See Note 2.	$	1,350		$	1,983

Note payable to PNC Bank and Community & Southern Bank; interest rate at LIBOR plus applicable margin as defined per the loan agreement, minimum 4.00%, default rate 9% (the Company was in breach of covenants; therefore, 9% rate applied.) Collateralized by two properties of the Company and one property owned by the Chief Executive Officer. Note paid off August 30, 2013.		—			2,567

Mortgage payable to bank; interest rate at Community Banks Base Rate plus 0.5% (3.75% as of November 30, 2013); monthly principal and interest payments of $5 payable through October 2021; collateralized by land and building of the Company.		293			327

		1,643			4,877
Less current maturities		(1,398	)		(4,596	)

	$	245		$	281