13. Contingent Liabilities
As is customary in the manufactured housing and recreational vehicle industries, the Company is contingently liable at April 30, 2000 under the terms of repurchase agreements with many financial institutions providing inventory financing for retailers of the Company’s products. The contingent liability under these agreements approximates the amount financed, reduced by the resale value of any products which may be repurchased, and the risk of loss is spread over numerous retailers and financial institutions. Losses under these agreements have not been significant in the past.
   The Company is subject to claims and litigation in the ordinary course of business, certain of which is covered in whole or in part by insurance. Although the amount of any liability with respect to existing litigation cannot presently be determined, in the opinion of management such liability is not expected to have a material adverse effect on the Company’s financial condition or results of operations.