Commitments and Contingencies	9 Months Ended
Sep. 30, 2013
Commitments and Contingencies	12. Commitments and Contingencies Commitments *Operating Leases* Corporate Headquarters We have several lease agreements for space at 71 Stevenson Street in San Francisco, California, where our corporate headquarters is located. These leases commenced in April 2011, July 2012, and May 2013. The July 2012 lease for the second floor expires in June 2015 with a renewal option that would extend the lease for two years to June 2017 and the leases for the third floor and the eleventh and twelfth floors, respectively, expire in June 2017. Other Real Estate In December 2012, we renewed a lease for a New York City office for a one year term that expires on January 31, 2014. Total facilities rental expense for the three months ended September 30, 2013 and 2012 was $0.5 million and $0.1 million, respectively. Facilities rental expense for the nine months ended September 30, 2013 and 2012 was $1.3 million and $0.4 million, respectively. As part of these lease agreements, we have pledged $0.2 million of cash and arranged for a $0.2 million letter of credit as security deposits. *Loan Funding Related to Direct Marketing Programs* In regards to loans listed on the platform as a result of direct marketing efforts, we have committed to invest in such loans in order for these loans to have investment commitments equal to the lesser of the amount approved and $10,000 at the time of issuance. Based upon our platform’s performance to date we have not had to commit any material amounts to finance these loans and as such we have not recorded a contingent obligation on our balance sheet as of September 30, 2013 or December 31, 2012. Contingencies *Credit Support Agreement* The Company is subject to a Credit Support Agreement with a Certificate investor. The Credit Support Agreement requires the Company to pledge and restrict cash in support of its contingent obligation to reimburse the investor for credit losses on Member Loans underlying the investor’s Certificate, that are in excess of a specified, aggregate loss threshold. The Company is contingently obligated to pledge cash, not to exceed $5.0 million, to support this contingent obligation and which cash balance is premised upon the investor’s Certificate purchase volume. As of September 30, 2013, approximately $3.4 million was pledged and restricted to support this contingent obligation. As of September 30, 2013, the credit losses pertaining to the investor’s Certificate have not exceeded the specified threshold, nor are future credit losses expected to exceed the specified threshold, and thus no expense or liability has been recorded. The Company currently does not anticipate recording losses resulting from its contingent obligation under this Credit Support Agreement. If losses related to the Credit Support Agreement are later determined to be likely to occur and are estimable, results of operations could be affected in the period in which such losses are recorded. *Legal* The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. After consultation with legal counsel, we do not anticipate that the ultimate liability, if any, arising out of any such matter will have a material effect on our financial condition, results of operations or cash flows.

12. Commitments and Contingencies

Commitments

Operating Leases

Corporate Headquarters

We have several lease agreements for space at 71 Stevenson Street in San Francisco, California, where our corporate headquarters is located. These leases commenced in April 2011, July 2012, and May 2013. The July 2012 lease for the second floor expires in June 2015 with a renewal option that would extend the lease for two years to June 2017 and the leases for the third floor and the eleventh and twelfth floors, respectively, expire in June 2017.

Other Real Estate

In December 2012, we renewed a lease for a New York City office for a one year term that expires on January 31, 2014.

Total facilities rental expense for the three months ended September 30, 2013 and 2012 was $0.5 million and $0.1 million, respectively. Facilities rental expense for the nine months ended September 30, 2013 and 2012 was $1.3 million and $0.4 million, respectively. As part of these lease agreements, we have pledged $0.2 million of cash and arranged for a $0.2 million letter of credit as security deposits.

Loan Funding Related to Direct Marketing Programs

In regards to loans listed on the platform as a result of direct marketing efforts, we have committed to invest in such loans in order for these loans to have investment commitments equal to the lesser of the amount approved and $10,000 at the time of issuance. Based upon our platform’s performance to date we have not had to commit any material amounts to finance these loans and as such we have not recorded a contingent obligation on our balance sheet as of September 30, 2013 or December 31, 2012.

Contingencies

Credit Support Agreement

The Company is subject to a Credit Support Agreement with a Certificate investor. The Credit Support Agreement requires the Company to pledge and restrict cash in support of its contingent obligation to reimburse the investor for credit losses on Member Loans underlying the investor’s Certificate, that are in excess of a specified, aggregate loss threshold. The Company is contingently obligated to pledge cash, not to exceed $5.0 million, to support this contingent obligation and which cash balance is premised upon the investor’s Certificate purchase volume. As of September 30, 2013, approximately $3.4 million was pledged and restricted to support this contingent obligation.

As of September 30, 2013, the credit losses pertaining to the investor’s Certificate have not exceeded the specified threshold, nor are future credit losses expected to exceed the specified threshold, and thus no expense or liability has been recorded. The Company currently does not anticipate recording losses resulting from its contingent obligation under this Credit Support Agreement. If losses related to the Credit Support Agreement are later determined to be likely to occur and are estimable, results of operations could be affected in the period in which such losses are recorded.

Legal

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. After consultation with legal counsel, we do not anticipate that the ultimate liability, if any, arising out of any such matter will have a material effect on our financial condition, results of operations or cash flows.