Arcadia Resources Inc fka KADR

[nuubie]

$500K part of the Credit Agreement dated 7/13/2009:

Page 6-

"2.7 In addition to direct Advances under the Revolving Credit Note to be provided to Companies by Bank under and pursuant to Section 2.1 of this Agreement, Bank further agrees to issue, or commit to issue, from time to time, standby letters of credit for the account of Companies (herein individually called a “Letter of Credit” and collectively “Letters of Credit”) in aggregate undrawn amounts not to exceed Five Hundred Thousand Dollars ($500,000) at any one time outstanding;"
http://www.sec.gov/Archives/edgar/data/1071941/000095012309022164/c52030exv10w42.htm

The big question here is why would commetica give Arcadia an additional $500k if they did not expect to be paid? Believe whatever you want.

Arcadia has milked Comerica for every penny they can contractually get but now it's come to an end.