5. Line of Credit

12 Months Ended

Dec. 31, 2014

Notes

5. Line of Credit

5. LINE OF CREDIT

On December 29, 2014, the Company entered into to an Amended and Restated Committed Revolving Line of Credit Note (“the Line”) and a Second Amendment to the Loan Agreement with Santander Bank, N.A. (“Santander”). The Company renewed and increased the Line facility in the maximum amount of $15,000,000, for a five year term maturing on December 31, 2019, with funds available for working capital purposes and to fund dividends. This Line facility supersedes the expiring $10,000,000 line of credit the Company previously had in place with Santander since 2010. The Line is unsecured. The Line provides for the payment of any borrowings at an interest rate of either LIBOR plus 1.00% to plus 1.35% (for borrowings with a fixed term of 30, 60, or 90 days), or Prime from 0.00% to plus 0.10%, depending upon the Company’s then existing financial ratios.  At December 31, 2014, the Company’s financial ratios would allow for the most favorable rate under the agreement’s range, which would be a rate of 1.25%.  Under the terms of the agreement, the Company is required to pay on a quarterly basis an unused facility fee equal to 10 basis points of the average unused balance of the total Line commitment.

As of December 31, 2014 and 2013, the Company had no outstanding borrowings on its line of credit.  During the first quarter of 2013, the Company paid $324,000, which was the balance outstanding on the line as of December 31, 2012.

As of December 31, 2014 and 2013, the Company was in compliance with all debt covenants.