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Notes to Financial Statements <br /> Page 13 <br /> Note 7: Notes Payable, Continued <br /> Wells Fargo Bank has exclusive authority over withdrawals from <br /> assigned deposits of $1,113,396 at November 30, 2013. <br /> The Organization is not in compliance with the Wells Fargo Bank <br /> covenant which requires maintenance of a debt service coverage <br /> ratio of 1.25 to 1. As of November 30, 2013, the debt service <br /> ratio is approximately 0.63 to 1. The. default is caused by the <br /> maturity of the ,.Wells Fargo Senior Care Mortgage loan on <br /> October 1, 2014. Also, the Organization is in default on the <br /> cash flow coverage ratio requirement of the Branch Bank & Trust <br /> loans. The requirement is 1.15. As of November 30, 2013, the <br /> ratio is approximately 0.61 due to the Wells Fargo mortgage <br /> which matures on October 1, 2014. <br /> The Organization is generally in compliance with other loan <br /> covenants as of November 30, 2013. <br /> Note 8: Leases <br /> The Organization acquired equipment under various capital <br /> leases. The following is a schedule, by year, of future <br /> minimum lease payments under capital leases together with the <br /> present value of net minimum lease payments as of November 30, <br /> 2013: <br /> Year Ending November 30, 2014 Amount <br /> Total future minimum lease <br /> commitments 17,710 <br /> Less: Amount representing <br /> interest ( 991) <br /> Present value of net minimum <br /> lease -payments - current $ 16,719 <br /> The Organization acquired various facility and office equipment <br /> under operating leases. <br /> Rent expense for the years ended November 30, 2013 and 2012 was <br /> $45,284 and $31,185, respectively. <br /> -26- <br />