Restricted Cash

The Company is required to maintain certain cash balances with counterparties and/or unrelated third parties for various activities and transactions.

The Company has entered into a $3.0 million loan agreement with a mortgage originator in which it has invested. Under the terms of the agreement, the Company has agreed to make advances to the mortgage originator solely for the purpose of funding residential mortgage loans designated for sale to the Company. In connection with the agreement, the Company has placed cash into a restricted account in the Company's name, which is available to be drawn upon by the mortgage originator as needed to fund the origination of residential mortgage loans. To the extent the advances are drawn by the mortgage originator, it must pay interest, equal to LIBOR plus 5.00%, on the unpaid amount of each advance from the date the advance is made until such advance is paid in full. The mortgage originator is required to repay advances made in full no later than two business days following the date the Company purchases the loans from the mortgage originator. As of September 30, 2015, no advances were outstanding.

The Company has funded and caused a letter of credit to be issued by a bank for the benefit of one of the mortgage originators in which the Company holds an equity investment, in order to assist that originator in complying with its state licensing requirements.

The Company is required to maintain a specific cash balance in a segregated account pursuant to a flow consumer loan purchase and sale agreement.

The below table details the Company's restricted cash balances included in Restricted cash on the Consolidated Statement of Assets, Liabilities, and Equity as of September 30, 2015. No restricted cash was held at December 31, 2014:



	September 30, 2015
	(In thousands)
Restricted cash balance related to:
Warehouse facility	$	3,000
Letter of credit	230
Flow consumer loan purchase and sale agreement	2,350
Total	$	5,580