Branch Company, a building materials supplier, has $18,000,000 of notes payable due April 12, 2010. At December 31, 2009, Branch signed an agreement with First Bank to borrow up to $18,000,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 75% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2009, financial statements, the value of Branch's collateral was $20,000,000.