(7)

NOTES PAYABLE

Notes payable consist of the following (in thousands):

	January 31, 2017		April 30, 2016
Credit facilities:
Real estate operations - due to related party	$	1,586	$	12,384
Real estate operations - other		-		555
	$	1,586	$	12,939

Note Payable to Related Party

At January 31, 2017, AMREP Southwest had a loan from a company owned by Nicholas G. Karabots, a significant shareholder of the Company and in which a director of the Company had a 20% participation. The loan was scheduled to mature on December 1, 2017 and bore interest payable monthly at 8.5% per annum. The outstanding balance of this loan at January 31, 2017 was paid in full in February 2017.

Other Note Payable

A subsidiary of AMREP Southwest had a loan agreement with U.S. Bank National Association for the construction of a 2,200 square foot, single tenant retail building in Rio Rancho, New Mexico. The loan bore interest payable monthly on the outstanding principal amount at 0.5% plus the prime rate. In the first quarter of 2017, this property was sold and the outstanding loan balance was satisfied with proceeds from the sale.