Bourne

This year, there are more detailed about how the calculation is done in accordance to rules set by Destination Club Assocication.

http://www.highcountryclub.com/pdf/HCC_AUP_07.pdf

TarheelTraveler

That is certainly nice to see.

It's also interesting to see the formula which I guess is standard among DCA members. I'm not an accountant, but one question that I have is what about other debt not secured by the real estate (e.g., to the founders, vendors and potentially even banks if it's unsecured), obligations to the shareholders, and obligations such as outstanding compensation or commissions, etc. I think a number of DCs have gone in the direction of making the members deposit claims rank higher than those of others, except for the debt on the real estate, which the banks will always want to be number 1 in line in order to get the loans. I'm glad the DC industry is moving in this direction as a whole.

DC4MS

FOR IMMEDIATE RELEASE
Christian Kirschner, High Country Club
(303) 991-2300

HIGH COUNTRY CLUB COMPLETES ANNUAL NET ASSET TEST

I am pleased to announce that as of December 31, 2007, just as at year-end 2006, High Country Club is in compliance with the Net Asset Test. The Net Asset Test is designed to confirm that the Club’s assets are sufficient to meet its obligations, including the Membership Deposit Obligation in accordance with the terms and conditions of the Club’s Membership Agreement.

The Net Asset Test is calculated using:

Cash and cash equivalents, plus market value of real estate (if less than 24 months from the purchase date, cost may be used), plus deposits or other instruments for the acquisition of real estate, less secured debt = Net Assets Available to Satisfy Membership Deposit Obligations.
As of December 31, 2007, the Club’s Net Assets Available to Satisfy Membership Deposit Obligations exceeds its Membership Deposit Obligation.

Further proof of the Club’s compliance with the Net Asset Test is evidenced by the Agreed Upon Procedures report, which was prepared by its independent accountants, BKD, LLP. (Available for download here.)

The Net Asset Test will be performed by the club annually on December 31st, and future results of the Net Asset Test will be reported by April 30th of the following year.

Christian V. Kirschner
President & CEO
High Country Club Investments, LLC

DC4MS

Here is the PDF file of the HCC Net Asset Test for 2007.


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Attached Files

HCC_AUP_07.pdf (131.5 KB, 19 views)