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7. Bank Indebtedness
6 Months Ended
Feb. 28, 2017
Notes  
7. Bank Indebtedness

7.             BANK INDEBTEDNESS

 

There was no bank indebtedness under the Company’s $3,000,000 line of credit as of February 28, 2017 or August 31, 2016.

 

Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. Interest is calculated solely on the one month LIBOR rate plus 175 basis points.