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 13 - R ELATED P ARTY T RANSACTIONS A majority of the Corporation’s directors are associated with member credit unions, some of which conduct transactions with the Corporation in the ordinary course of business. During the year ended September 30, 2022, the Corporation advanced $175,000 to the LLC. This intercompany loan and related interest is eliminated in consolidation. N OTE 14 - C OMMITMENTS AND C ONTINGENCIES In the normal course of business, there are outstanding commitments and contingencies which are not reflected in the Corporation’s consolidated financial statements as follows: E MPLOYMENT A GREEMENT The Corporation has entered into an employment agreement with its President and Chief Executive Officer that generally provides for a specified minimum annual compensation and certain benefits. However, such employment may be terminated for cause, as defined, without incurring any continuing obligations. The agreement extends through January 31, 2030. O PERATING L EASE C OMMITMENTS The Corporation occupies office space in the commercial property owned by MSIC Properties, LLC. The Corporation paid rent to MSIC Properties, LLC amounting to $215,327 and $184,255 for the years ended September 30, 2023 and 2022, respectively, which is eliminated in consolidation. The Corporation leased office space pursuant to the terms of a non-cancelable lease agreement from an unaffiliated third party, which expired in November 2022 and was extended to March 2023 and was not renewed. The Corporation was also responsible for common area charges under the lease. The Corporation paid rent on the lease amounting to $20,853 and $38,216 for the years ended September 30, 2023 and 2022, respectively.
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2023 ANNUAL REPORT 99
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