3.RESTRICTED CASH

Restricted cash consists of the following:



	As of		As of
	March 31, 2016		December 31, 2015		Included on Balance Sheet

		(in thousands)
Securitization escrow accounts	$	24,910	$	25,135	Restricted cash - current asset
Payment and performance bonds		228		218	Restricted cash - current asset
Surety bonds and workers compensation		3,229		3,227	Other assets - noncurrent
Total restricted cash	$	28,367	$	28,580

Pursuant to the terms of the Tower Securities (see Note 10), the Company is required to establish a securitization escrow account, held by the indenture trustee, into which all rents and other sums due on the towers that secure the Tower Securities are directly deposited by the lessees. These restricted cash amounts are used to fund reserve accounts for the payment of (1) debt service costs, (2) ground rents, real estate and personal property taxes and insurance premiums related to towers, (3) trustee and servicing expenses, and (4) management fees. The restricted cash in the securitization escrow account in excess of required reserve balances is subsequently released to the Borrowers (as defined in Note 10) monthly, provided that the Borrowers are in compliance with their debt service coverage ratio and that no event of default has occurred. All monies held by the indenture trustee are classified as Restricted cash on the Company’s Consolidated Balance Sheets.

Payment and performance bonds relate primarily to collateral requirements for tower construction currently in process by the Company. Cash is pledged as collateral related to surety bonds issued for the benefit of the Company or its affiliates in the ordinary course of business and primarily related to the Company’s tower removal obligations. As of March 31, 2016 and December 31, 2015, the Company had $38.8 million and $38.6 million in surety, payment and performance bonds, respectively, for which it was only required to post $0.5 million and $0.7 million in collateral, respectively. The Company periodically evaluates the collateral posted for its bonds to ensure that it meets the minimum requirements. As of March 31, 2016 and December 31, 2015, the Company had also pledged $2.5 million and $2.5 million, respectively, as collateral related to its workers compensation policy.