FOR AGES GAR ANT & FR ` ERES INC. NOTES TO THE FINANCIAL ST A TEMENTS (Continued) 7. LONG - TERM DEBT June 30, September 30, 2006 2006 2005 $$$ L oan, bearing interest at the Business Development Bank of Canada’s prime rate, maturing A ugust 23, 2008, payable in monthly instalments of principal of $13,250 plus interest, secured by a first rank hypothec on certain machinery and equipment .......................... — 344,500 503,500 L oan, bearing interest at prime rate plus 0.75%, maturing September 2007, payable in monthly instalments of principal of $2,250, secured by land and buildings of a net book value of $392,579 and by a movable hypothec over all present and future assets .............................. — 141,750 168,750 L oans, non-interest bearing, payable in aggregate monthly instalments of $4,981, maturing from March 2007 to October 2008, secured by vehicles (net book value of $108,119) ............................. 77,924 92,867 154,742 77,924 579,117 826,992 Current portion ....................................... (50,456) (240,448) (247,874) 27,468 338,669 579,118 A dvances from directors, variable interest rates, no specific terms of repayment ......................................... — 556,273 546,075 27,468 894,942 1,125,193 P rincipal payments required in each of the next two years are as follows: $ 2007 ........................................................................... 50,456 2008 ........................................................................... 27,468 F-52