Contingencies

(in thousands of dollars)

Year ended March 31, 2009

(a) Guarantees:

		2009	2008
	Authorized	Utilized	Utilized
Bank loans	$ 3,534	$ 3,534	$ 5,008
Less provision for payment		2,934	2,894
		$ 600	$ 2,114

IIncluded in the above guarantees are: (a) a term loan in the amount of $3,134 (2008 - $4,458) that has been demanded but not yet settled (2008 - expiring between fiscal 2009 and 2011); and (b) a guarantee of a line of credit in the amount of $400 expiring in 2010.

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.

In addition, there are other outstanding claims against the Corporation for events that have arisen in the normal course of carrying on the operations of the Corporation. It is not possible at this time to determine the amount that may be assessed, or the impact to the Corporation’s financial statements, with respect to these claims.

The Corporation’s counsel is unable to form an opinion in regard to the likelihood of loss arising from the above litigation; 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 has undergone GUDI (Groundwater Under the Direct Influence of Surface Water) testing. Of the three wells tested, two were non-GUDI. As a result of the third well being determined as GUDI, NSBI will likely have to contribute additional funds to be used for water treatment. It is not known the extent of the liability that exists.