MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022
N OTE 6 - R EAL E STATE H ELD FOR I NVESTMENT (C ONTINUED ) As a condition of the regulatory approval by the Massachusetts Commissioner of Banks to form MSIC Properties, LLC, the Corporation was required to obtain a standby line of credit, secured by the Property, in an amount equal to approximately 50% of the purchase price of the Property to allow access to additional liquidity to the Corporation, if the need arises. MSIC and MSIC Properties, LLC obtained a line of credit, permitting borrowings of up to a lesser of $15,000,000 or a maximum loan-to-value of 75% with a maturity date of December 20, 2022 at a rate of 30 day LIBOR plus 1.95%, floating. The line of credit was extended on June 8, 2023 to a maximum borrowing amount of $10,500,000 with a maturity date of June 8, 2028 at a rate of 30 day term SOFR plus 2.06% floating. The line of credit is collateralized by a first mortgage and assignment of leases and rents of the Property. The line of credit has an interest rate of 7.37% as of September 30, 2023. There were no amounts outstanding on this line of credit at September 30, 2023 or 2022.
N OTE 7 - P REMISES AND E QUIPMENT , N ET A summary of premises and equipment, net at September 30 is as follows:
2023
2022
Furniture, fixtures and equipment
$
381,724 247,349 84,918
$
394,188 251,327 84,918
Software
Leasehold improvements
713,991
730,433
(568,870)
(529,081)
Less: accumulated depreciation and amortization
$
145,121
$
201,352
24
96 INTERNATIONAL COLLABORATION
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