NOTE 12 – LONG-TERM DEBT

The Company has outstanding $40,000,000 aggregate liquidation amount of pooled trust preferred securities ("TRUPs") issued through its wholly-owned subsidiary grantor trusts, Macatawa Statutory Trust I (issued $20,000,000 aggregate liquidation amount with a floating interest rate of three-month LIBOR plus 3.05%) and Macatawa Statutory Trust II (issued $20,000,000 aggregate liquidation amount with a floating interest rate of three-month LIBOR plus 2.75%). In December 2009, the Company exercised its right to defer interest payments on the TRUPs for 20 consecutive quarters or until such earlier time as is determined by further action of the Board of Directors. Through June 30, 2013, the Company had deferred interest payments on the TRUPs for 15 quarters. The Company continued to accrue interest during the deferral period. Interest on unpaid interest is required to be accrued and compounded quarterly at the stated interest rate.  Upon termination of the deferral, all accrued and unpaid interest is due and payable.

On August 18, 2013, the Company announced its intention to discontinue the deferral and resume regular quarterly interest payments on the TRUPs beginning with the next regularly scheduled interest payment dates and pay all accrued and unpaid interest that becomes due and payable upon the discontinuance of the deferral. For Macatawa Statutory Trust I, the next regularly scheduled interest payment date was September 30, 2013 and a total of $3.0 million was distributed, representing all of the deferred and current interest payment due. For Macatawa Statutory Trust II, the next regularly scheduled interest payment date was October 7, 2013 and a total of $2.7 million was distributed, representing all of the deferred and current interest payment due.