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Note payable due to bank
9 Months Ended
Mar. 31, 2012
Note payable due to bank [Abstract]  
Note payable due to bank

3.

Note payable due to bank


During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $150,000.  The line of credit bears a variable interest rate of one quarter percent (0.25%) above the prime rate (3.25% as of March 31, 2012).  This borrowing facility is renewed annually and our Company is required to maintain a separate demand deposit account with HSBC with a minimum balance equal to the outstanding borrowing.  In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate.   As of March 31, 2012, the loan's interest rate was three and one half percent (3.5%) and our Company has drawn down $50,000 loan balance on the line.