Note 8 - Loan Receivable

9 Months Ended

Sep. 30, 2012

Note 8 - Loan Receivable:

Note 8 - Loan Receivable

Note 8 – Loan Receivable

On August 4, 2011, the Company subsidiary Andrew Liu & Company Limited (“ALC”) entered into a loan agreement with its clients, Jian Mao International Shipping Co Ltd (“JMISCL”) and Jian Xing Intl Shipping Co Ltd (“JXISCL”).  Under the loan agreement, ALC will make available to JMISCL and JXISCL an on demand loan facility in the principal amount of up to US$3,000,000.  The loan is interest free and secured by the claim proceeds under a claim filed by JMISCL and JXISCL under the terms an existing Hull & Machinery insurance policy insuring a vessel owned and managed by JMISCL and JXISCL respectively. The loan is payable upon demand at any time following settlement of the claim if the claim proceeds are not adequate to cover the loan in full, and in any event is due and payable in full on or before August 4, 2012.  

On August 4, 2012, ALC entered into a loan extension agreement with JMISCL and JXISCL.  Under the extension agreement, the payable due date is extended one year to August 4, 2013.  All terms and conditions of the loan agreement remain unchanged.

As of September 2012 and December 2011, the outstanding balance of the loan is as follows:

		September 30, 2012		December 31, 2011
Loan amount	$	3,000,000	$	3,000,000
Less: Repayment		(1,088,000)		(1,088,000)
Loan receivable	$	1,912,000	$	1,912,000