Barrow AFC.net

PRR wrote:

Stephen Leonard wrote: No interest has being charged on the loans.

I was thought that the very first loan was secured on the ground and was at an above interest rate level of interest? I seem to recall it being discussed on the old forum. Anyone else recall? Not sure about any of the subsequent loans

The loan from St Andrews Engineering Limited is secured via a third charge over the ground. The charge states that interest at 2% over Bank of England base rate could be charged each year.
The loan/charge was put in place in 2006.
No interest has been paid or claimed during the period the loan has been in place and nor do I expect that it will in the future.
The annual accounts of the company have included the loan balance in its figures and a review of the 'interest costs' section of the profit and loss account shows that no interest has been paid/accrued.

Hopefully that clarifies the matter.

None of the other loans from Directors have any security attached to them nor any right to claim interest.

Interest has been accrued on some of the debentures, most debenture holders formally waived their right to interest many years ago. Therefore an accrual is made each year and will continue to do so until either sums are paid or written off or otherwise dealt with formally. The debentures are secured via a 2nd charge over the ground. A note detailing these figures is in the accounts.

The Furness Building Society mortgage is secured via a first charge over the ground and interest is paid on this mortgage each year and included in the accounts accordingly. The balance due on the mortgage is shown in the accounts.