Year ended December 31, 2014  DIVERSIFIED ROYALTY CORP .  (Unaudited)  (Expressed in Canadian dollars)  Notes toConsolidatedFinancial Statements  9. Long-term liability(continued):  10. Borrowings:  The tenure payments are made on a monthly basis in the amount of $6,583 ($79,000 annually). The tenure agreement expires on December 31, 2022. The carrying value of the liability is the  present value of the future payments discount ed by an assumed rate of 1.34% based upon the  current long-term Canadian bond rate which is reviewed and updated annually as required.  Balance January 1, 2014  $  653,057  Paid during 2014  (79,000)  Adjustment to and unwinding of discount 24,929  598,986  Less current portion 79,000  Balance December31, 2014  $  519,986  On September 26, 2014, concurrent with the Franworks Acquisition, the FW LP borrowed  $15,000,000 from a banking syndicate. The facility bears interest  at published three-month  Canadian dollar Banker’s Acceptance Rate (the ”BA Rate”) plus 4.15% per annum, requires  monthly interest only payments and is secured by a general security agree ment over theassets  of theFW LP, an assignment of the royalty earned under the License and Royalty Agreement  and a guarantee fromthe Company. The maturity date of the facility is  September 26, 2017. The facility is subject to certain financial covenan ts, including a covenant to maintain a funded  debt to normalized EBITDA ratio of not more than 1.6:1.0. As at  December 31, 2014, the  Company and the FW LP are in compliance with all financial covenants associated with this  facility.  The term loan ispresented net of $195,267 in deferred financing charges at  December 31,  2014.  On September 26, 2014, concurrent with the Franworks Acquisition, the  FW LP obtained a  $2,000,000 demand operating facility from a banking syndicate . This facility bears interest at  BA Rate plus 4.50% and is secured by a general security agreement over the assets of the  FW  LP, an assignment of the royalty earned under the License and Royalty Agreement and a  guarantee fromthe Company. As at December 31, 2014, the entire $2,000,000 remains  available for use.  (a) Term bank loan: (b) Operating line of credit: 22 