Notes to Financial Statements

Note 4: Mortgage payable

(in thousands of dollars)

On June 23, 2010, the College purchased eight floors of a 15-floor commercial condominium building at 101 Bloor Street West. The vendor retained the bottom six floors, including the valuable ground floor retail space. The total cost of the property purchased was $20,500, which was recorded in capital assets.

The College received a $14,120 mortgage from its bank to finance the purchase of office space at 101 Bloor Street West. The mortgage is being amortized over 30 years and is secured by the property. Held as collateral for the mortgage are the property, a chattel mortgage and a general assignment of rents and leases.

The College also received a $6,140 construction mortgage from its bank to finance the building improvements. The mortgage will be merged with the building acquisition mortgage in 2012 and assume the same terms.

  2011
$		 2010
$
* Note: For the first two years, only interest payments were required. Blended payments of interest and principal begin on July 1, 2012.
Bank of Montreal, 5.77% payable in monthly instalments of principal and interest of $93, maturing June 30, 2020* 14,120 14,120
Bank of Montreal, 5.77% payable in monthly instalments of principal and interest of $40, maturing June 30, 2020* 6,140 6,140
20,260 20,260
Less: Current portion 251 -
20,009 20,260

Principal payments are due as follows:

$
2012 251
2013 450
2014 477
2015 505
2016 535
Thereafter 18,042
20,260

Interest expense of $1,169 (2010 - $615) relating to the mortgage is included in operating support.