Directors' Message - Lewis County IDA

NOTES TO FINANCIAL STATEMENTS - CONTD.

MAY 31, 2005

D. Notes Receivable - contd.:

Notes receivable due to the Lewis IDA Community Development Corporation consist of the following:

			2005	2004
1.		A note receivable with the /////////////////////////////////////////// was issued on September 16, 1994 for a principal amount of $75,000 plus interest at 6% for a period of 15 years. Monthly payments of $832.65 include interest. The loan is secured with all machinery, equipment, fixtures and furnishings of the//////////////////////////////////.	$ 30,892	$ 37,633
2.	A note receivable with the ///////////////////////////////////////// dated April 17, 1996 was issued for a principal sum of $125,000. The note was advanced in installments pursuant to a financing agreement between the Lewis IDA Community Development Corporation and //////////////////////////// Interest at 9% is charged on the amount of principal sum advanced. Principal and interest monthly payments of $1,468 will continue through July 1, 2012.		92,530		101,005
	Total		612,819		227,792
	Less: Current Portion of long-term notes		57,388		23,340
	Long-Term Notes Receivable		$ 555,431		$ 204,452

Notes made by the Lewis IDA Community Development Corporation were funded through the borrowing of the same amounts from the County of Lewis Industrial Development Agency. The intercompany receivable and payable between the Corporation and the Agency has been eliminated for financial statement purposes.

E. Lease Receivables:

The Agency entered into a lease agreement with ////////////////////////////, a subsidiary of Bestway Enterprises, (the “Company”) on August 9, 1999 to lease the Woodproducts Industrial Park Facility located in the Town of Diana, Lewis County, New York. The terms of the lease include 300 monthly rental payments as follows:

(i) For months one (1) through six (6) of the term, the sum of $2,500 per month, due not later than the first day of that particular month;

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