INANCIAL STATE
MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021
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. At September 30, 2021, a payable to MSIC Partners, LLC (the "LLC") in the amount of $24,110 for expense reimbursements was included in Accounts Payable and Accrued Expenses on the Consolidated Balance Sheet which was repaid to the LLC in 2022. 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 $184,255 and $178,329 for the years ended September 30, 2022 and 2021, respectively, which is eliminated in consolidation. The Corporation leases office space pursuant to the terms of a non-cancelable lease agreement from an unaffiliated third party, which expires in November 2022, with an option to extend the lease for an additional three years. The lease has been extended to March 2023. The Corporation is also responsible for common area charges under the lease. The Corporation paid rent on the lease amounting to $38,216 and $38,216 for the years ended September 30, 2022 and 2021, respectively.
27
2022 ANNUAL REPORT
75
Powered by FlippingBook