15 NORTHERN COLLEGE OF APPLIED ARTS AND TECHNOLOGY Notes to Financial Statements Years ended March 31, 2013 and March 31, 2012 6. Employ ment related obligations (continued): For measurement purpose, the annual rate of in crease in the per capita cost of covered health care benefits was assumed as follows: Other benefit plans Drug 10.5% (grading to 4.5% in 2026) Hospital 4.5% Other medical 4.5% Dental 4.5% 7. Long-term debt: The long-term debt of $4,439,000 was a loan payable to the Ontario Mortgage and Housing Corporation. The loan did bear a fixed intere st rate of 9.17% and was secured by a first mortgage on the student residence at the Porcupi ne campus. Under the terms of the loan agreement, interest payments of $203,528 we re made semi-annually and the principal amount was repaid on July 1, 2012. By Board resolution, a 9.5% Province of Ontario sinking- fund investment was used at maturity to retire this loan payable. 8. Bank borrow i ng facilities: The College’s bank borrowing facilities provide for the following: i) $1,000,000 operating line of credit bear ing interest at prime less 0.5% ii) $1,000,000 lease line of credit for equipment fi nancing, with the interest rate determined at time the financing is drawn There have been no amounts drawn on either li ne of credit noted above at March 31, 2013 (2012 - $Nil; 2011 - $Nil). The bank borrowing facilities are secured by a general security agreement.