(in thousands of dollars)
Year ended March 31, 2008
(a) Guarantees:
 |
| | | 2008 | 2007 |
|
| | Authorized | Utilized | Utilized |
|
| Bank loans | $ 5,008 | $ 5,008 | $ 4,004 |
| Less provision for payment | | 2.894 | 760 |
|
| | | $ 2,114 | $ 3,244 |
Included in the above guarantees are: (a) a term loan in the amount of $4,458 expiring between fiscal 2009 and 2011; (b) a guarantee of a line of credit in the amount of $400 expiring in 2010; and (c) a warranty guarantee in the amount of $150 expiring in 2009.
The guarantees are secured by various assets and proceeds from liquidation are expected to offset any possible payments under the guarantees. (b) Litigation:
The Corporation is a co-defender with the Province of Nova Scotia and Industrial Estates Limited in a dispute regarding environmental contamination on land previously owned by Industrial Estates Limited. It is assumed that any losses incurred related to this claim will be fully funded by the Province of Nova Scotia.
Counsel is unable to form an opinion at this early date in regard to the likelihood of loss; consequently, no provision for any possible loss has been recorded in these financial statements.
(c) NSBI completed a transfer agreement with the Municipality of the County of Colchester in fiscal 2008, which included a water system. The system is undergoing GUDI (Groundwater Under the Direct Influence of Surface Water) testing. If determined GUDI, NSBI would have to contribute additional funds to be used for water treatment. It is not known what liability, if any, exists. The tests are expected to be complete in the 2009 fiscal year.