Non-Consolidated Annual Report 2015

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2015 45 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2015 (Expressed in Barbados dollars) 34 17. Loans Payable...(continued) (i) During the year ended March 31, 2011, the Credit Union borrowed $15,000,000 from the National Insurance Board at a fixed interest rate of 8.25% payable over ten years to finance the purchase of Clico Mortgage and Finance Corporation (renamed Capita Financial Services Inc.) by its subsidiary BPW Financial Holdings Inc. This loan has been secured by a mortgage assignment over the property at Broad Street stamped to cover $10,000,000 and an assignment of a treasury note for $5,000,000 due to mature October 31, 2015. During the year, the loan was fully repaid. The other National Insurance Board loans amounting to $23,878,503 (2014 - $26,272,304) which were acquired prior to March 31, 2011, are repayable over an average period of twenty years and are secured by an equivalent value of first legal mortgages over residential properties funded by the loan proceeds. The interest rates on these loans ranged from 5.50% - 6.00% (2014 – 5.50% - 6.00%) at year end. (ii) The Housing Credit Fund loans are repayable over twenty-five years and are secured by an equivalent value of first legal mortgages over residential properties. The interest rate on all loans at year end was 4.25% (2014 - 4.25%). The Credit Union has not had any defaults of principal, interest or other breaches with respect to its loans payable during the years ended March 31, 2015 and 2014. 18. Other Liabilities Other liabilities is comprised of the following: 2015 2014 Accounts payable and accrued expenses $ 3,218,764 4,021,846 Amounts payable re Goodwill Credit Union (Note 27) 255,088 - Fair value adjustment - staff loans (i) 2,320,167 2,543,327 Interest rebate payable 203,206 203,026 Unallocated receipts to members 1,421,395 1,199,188 $ 7,418,620 7,967,387 (i) Fair value adjustment staff loans The fair value adjustment - staff loans represents the deferred interest income on staff loans associated with the difference between the market value and the carrying value of the loans as a result of the interest rates on the staff loans being lower than the market interest rate. This balance is partially offset by the prepaid employee benefit recorded and included in other assets (Note 15). The deferred interest income will be recognised over the term of the staff loans.