Quarterly report pursuant to sections 13 or 15(d)

Notes Receivable from Partners

v2.4.0.8
Notes Receivable from Partners
9 Months Ended
Sep. 30, 2013
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, August 2009 and September 2009 with interest rates of 3.53%, 2.77% and 2.84%, 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 subsequent to the reorganization and IPO.

Notes receivable from partners are as follows:

 

 

September 30,
2013

 

  

December 31,
2012

 

Beginning balance             

$

  3,410

  

  

$

  6,024

  

Repayment of notes             

 

(887

)  

  

 

(2,864

) 

Interest accrued and capitalized on notes receivable             

 

  62

  

  

 

  138

  

New notes receivable issued to partners             

 

  455

  

  

 

  112

  

Ending balance             

$

  3,040

  

  

$

  3,410

  

Full recourse and limited recourse notes receivable from partners as of September 30, 2013 and December 31, 2012 are $1,661 and $1,953 and $1,379 and $1,457, respectively. There is no allowance for credit losses on notes receivable from partners as of September 30, 2013 and December 31, 2012.