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7. Bank Indebtedness
12 Months Ended
Aug. 31, 2020
Notes  
7. Bank Indebtedness

7.BANK INDEBTEDNESS 

 

There was no bank indebtedness under the Company’s line-of-credit as of August 31, 2020 or August 31, 2019.  At August 31, 2020, the line of credit borrowing limit was $3,000,000.

 

Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory.  Interest is calculated solely on the one month LIBOR rate plus 175 basis points.