Quarterly report pursuant to Section 13 or 15(d)

Notes Receivable from Partners

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Notes Receivable from Partners
6 Months Ended
Jun. 30, 2015
Receivables [Abstract]  
Notes Receivable from Partners

12. NOTES RECEIVABLE FROM PARTNERS

Partner contributions to SLP are made in cash, in the form of five or six year interest-bearing promissory notes and/or in the form of nine year interest-bearing limited recourse promissory notes. Limited recourse promissory notes were issued in January 2008 and August 2009 with interest rates of 3.53% and 2.77%, respectively. The recourse limitation includes a stated percentage of the initial principal amount of the limited recourse note plus a stated percentage of the accreted principal amount as of the date upon which all amounts due are paid in full plus all costs and expenses required to be paid by the borrower and all amounts required to be paid pursuant to a pledge agreement associated with each note issued. Certain notes receivable are payable in annual installments and are collateralized by SLP’s units that are purchased with the note. Notes receivable from partners are reflected as a reduction of non-controlling interests in the Condensed Consolidated Statements of Financial Condition.

Notes receivable from partners are as follows for the six months ended June 30, 2015 and the year ended December 31, 2014:

 

 

  

June 30,
2015

 

 

December 31,
2014

 

Beginning balance

  

$

3,212

  

 

$

3,052

  

Repayment of notes

  

 

(481

)

 

 

(841

)

Interest accrued and capitalized on notes receivable

  

 

34

  

 

 

61

  

New notes receivable issued to partners

  

 

  

 

 

940

  

Ending balance

  

$

2,765

  

 

$

3,212

  

 

Full recourse notes receivable from partners as of June 30, 2015 and December 31, 2014 are $1,561 and $1,912, respectively. Limited recourse notes receivable from partners as of June 30, 2015 and December 31, 2014 are $1,204 and $1,300, respectively. There is no allowance for credit losses on notes receivable from partners as of June 30, 2015 and December 31, 2014.