E-Delivery

Principal repayments based on contractual maturity dates are as follows: Feb 28, 2015 Feb 28, 2014 Mar 1, 2013 Matured $ 150,000 $ 1,853,548 $ - Within one year 56,012,317 32,101,726 12,909,170 After one year but less than two years 1,156,824 3,002,500 - Open term - 110,000 110,000 $ 57,319,141 $ 37,067,774 $ 13,019,170 All of the un-matured mortgage loans contain a prepayment option, whereby the borrower may repay the principal at any time prior to maturity, subject to payment of an interest penalty that is specific to each mortgage. As at February 28, 2014, the Fund had three (March 1, 2013 – nil) mortgage loans outstanding with contractual maturity dates past due. During the year ended February 28, 2015, the maturity date was extended on one mortgage loan investment that was past due on February 28, 2014. Further, on the remaining two mortgage loans with past due maturity dates as at February 28, 2014, the Fund was able to fully recover the principal outstanding during the year ended February 28, 2015. As at February 28, 2015, the Fund had one mortgage loan outstanding with a contractual maturity date past due. Subsequent to year end, the maturity date on this mortgage loan was extended. 6. Trust funds: Cash held in trust on behalf of third parties are for subscriptions to preferred shares in the Fund that have yet to be accepted. e Fund holds third party assets in a separate bank account to prevent comingling with its own assets. ese liabilities are matched by an equal amount of funds on deposit in trust at a financial institution. As at February 28, 2015, trust liabilities amounting to $nil (February 28, 2014 - $179,590 and March 1, 2013 - $nil) have not been included in these financial statements. 7. Shareholders' equity: The Fund is authorized to issue an unlimited number of Class A voting common shares, an unlimited number of Class B non-voting common shares, an unlimited number of Class A preferred shares and an unlimited number of Class B preferred shares. All the classes of preferred shares and preferred shares within a class rank equally with respect to dividends, rank senior to the common shares of the Fund and are redeemable at the option of the Fund's board of directors. Class A and Class B preferred shares are privately held and there is no market through which these shares may be sold. The Fund may issue Class A and Class B preferred shares in the future in accordance with securities legislation. The Class A common shares have a nominal value and are owned by certain shareholders and officers of the Fund Manager. 49

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