North American Gem Inc V.NAG

loan to KBC

[lucci2005]

this was taken from the MD&A.

"During the year ended December 31, 2008, the Company made a $400,000 loan bearing an interest rate of

7.5% per year to a company with directors in common. The loan’s maturity has been extended from

December 31, 2008 to September 30, 2009. The company accrued $7,480 in interest income during the

quarter ended June 30, 2009. The loan is secured by a general security agreement over the assets of the

company and a personal guarantee from a director of the company."

In a nutshell, this says that the loan is secured by a GSA ove the assets of the company and a personal guarantee of the director (Charles).  At least the loan is not unsecured.  So looks like NAG will get their money back, or they can go after KBC's assets.  If there are none, they can go after Charles and get their money back.  At least that's how I understand it.  Anybody see it differently???