7.	Loan Receivable

The Liquidating Trust had no loans receivable at December 31, 2018. The loan receivable at December 31, 2017 was as follows (in thousands):

Description

Loan Position

Stated
Interest Rate at
December 31,
2017 (1)

Carrying Amount (2)

Contratual
Maturity Date

December 31,
2018

December 31,
2017

Jacksonville (3)

Whole Loan

LIBOR + 5

—

8,400

07/01/19

—

8,400

(1)	The one-month LIBOR rate at December 31, 2017 was 1.56425%.

(2)	The carrying amount represented the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable.

(3)	The loan had an interest rate floor of 6% and an interest rate ceiling of 8%.

The carrying amount of the loan receivable at December 31, 2017 represents the estimated amount expected to be collected on disposition of the loan. There was no accrued interest at December 31, 2017.

The weighted average coupon as calculated on the par value of the loan receivable was 6.00% at December 31, 2017, and the weighted average yield to maturity as calculated on the carrying value of the loan receivable was 6.00% at December 31, 2017.

Loan Receivable Activity

Activity related to loans receivable is as follows (in thousands):


	Year Ended December 31, 2018			Year Ended December 31, 2017
Balance at beginning of year	$	8,400		$	8,400
Purchase and advances		—			—
Interest received, net		—			—
Repayments/sale proceeds		(8,097	)		—
Change in liquidation value		(303	)		—

Balance at end of year	$	—		$	8,400

Credit Quality of Loan Receivable

Under liquidation accounting, the Liquidating Trust carried its loan receivable at the estimated amount of principal payments it expected to receive over the holding period of the loan. The Liquidating Trust utilized a grading system to assess the collectability of its loan portfolio. Grading categories included debt yield, debt service coverage ratio, length of loan, property type, loan type, and other more subjective variables that included property or collateral location, market conditions, industry conditions, and sponsor’s financial stability. Management reviewed each category and assigned an overall numeric grade to determine the loan’s risk of loss and to provide a determination as to whether the loan required an adjustment to the recorded liquidation value.

All loans with a positive score did not require a loan loss allowance. Any loan graded with a neutral score or “zero” was subject to further review of the collectability of the interest and principal based on current conditions and qualitative factors. Any change in the credit quality of the loan receivable that changes the Liquidating Trust’s estimate of the amount it expects to collect will be recorded as a change to the liquidation value of its loan receivable.

The Liquidating Trust had no loans receivable at December 31, 2018. The table below summarizes the Liquidating Trust’s loan receivable by internal credit rating at December 31, 2017 (in thousands, except for number of loans):


	December 31, 2017
Internal Credit Quality	Number of Loans		Liquidation Value of Loans Receivable
Greater than zero		1	$	8,400
Equal to zero		—		—
Less than zero		—		—

		1	$	8,400