Note 12 – Loans Payable

In May 2016, the Company and Mr. Richard A. Bianco, the Company's Chairman, President and Chief Executive Officer ("Mr. R. A. Bianco") entered into an agreement for Mr. R. A. Bianco to provide to the Company a secured working capital line of credit of up to one million dollars ($1,000,000) or additional amount(s) as may be necessary and agreed to on an as needed basis, if and when necessary, subject to customary and market terms and conditions to be agreed upon at such time (the "WC Agreement").

Pursuant to the WC Agreement, Mr. R. A. Bianco made several loans to the Company for use as working capital. The loans were due on the earlier of the date the Company received funds from any source sufficient to pay all amounts due under the loans, including accrued interest thereon, or the due date noted below. Accrued interest payable associated with the loans are included in accounts payable and accrued liabilities in the Company's consolidated balance sheet. In January 2018, pursuant to the WC Agreement, Mr. R.A. Bianco made an additional $250,000 loan to the Company for use as working capital as reflected and in accordance with the same terms of the loans payable noted herein.

Information regarding the loans payable is as follows:

	Date of Loan	Rate	Due Date		December 31, 2017		December 31, 2016
Loan payable	January 2017	5.25%	December 31, 2019	$	500,000	$	-
Loan payable	April 2017	5.25%	December 31, 2019		500,000		-
Loan payable	June 2017	5.25%	December 31, 2019		500,000		-
Loan payable	September 2017	5.25%	December 31, 2019		150,000		-
Loan payable	October 2017	5.25%	December 31, 2019		446,000		-
Loan payable	December 2017	5.25%	December 31, 2019		200,000		-
				$	2,296,000	$	-

Information regarding accrued interest expense on the loans payable is as follows:

(in thousands)		December 31, 2017				December 31, 2016
Accrued interest expense		$	67			$	-

The amounts noted above pursuant to the WC Agreement are distinct from the line of credit agreement for the 111 West 57^th Property as discussed in Note 4 herein and distinct from the Litigation Funding Agreement amounts as discussed in Note 10 herein.

On January 26, 2018, in connection with the sale by the Company of its commercial office building in Greenwich, Connecticut, the Company repaid the full amount of the working capital loan, plus accrued interest aggregating $2,623,000 to Mr. R. A. Bianco, and the working capital line of credit agreement was terminated. See Note 3 herein for additional information.