10. Retail Flooring Liability
Retail flooring liability represents amounts borrowed by Company-owned retail sales centers to finance inventory purchases of manufactured homes. All but a minor portion of the amount outstanding at April 30, 2000 was financed under agreements with a national floor plan lender that provides for a security interest in the units financed and repayment at the time the units are sold. Substantially all amounts outstanding bear interest at the current one-month LIBOR rate plus 1.95 percent (approximately 7.75 percent at year end).