Quarterly report pursuant to sections 13 or 15(d)

Notes Receivable from Partners

v2.4.0.8
Notes Receivable from Partners
3 Months Ended
Mar. 31, 2014
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 subsequent to the reorganization and IPO.

Notes receivable from partners are as follows for the three months ended March 31, 214 and the year ended December 31, 2013:

 

 

  

March 31,
2014

 

 

December 31,
2013

 

Beginning balance

  

$

3,052

  

 

$

3,410

  

Repayment of notes

  

 

(629

)

 

 

(887

)

Interest accrued and capitalized on notes receivable

  

 

19

  

 

 

74

  

New notes receivable issued to partners

  

 

  

 

 

455

  

Ending balance

  

$

2,442

  

 

$

3,052

  

Full recourse and limited recourse notes receivable from partners as of March 31, 2014 and December 31, 2013 are $1,052 and $1,671 and $1,391 and $1,381, respectively. There is no allowance for credit losses on notes receivable from partners as of March 31, 2014 and December 31, 2013.