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Note Receivable
6 Months Ended
Jun. 30, 2011
Note Receivable

5. Note Receivable

 

In September 2010, we sold our Canadian facility and assumed a note receivable from one borrower secured by the property.  The $1.1 million, fifteen-year note receivable is based on a 4.0% interest rate with a $0.6 million balloon payment due in October 2025.  The note calls for monthly combined interest and principal payments beginning in October 2010.  Interest payments are recognized in note receivable interest income.

 

We evaluate for impairment on a quarterly basis.  We determine the note receivable to be impaired if we are uncertain of the collectability of the note based on the contractual terms.  The loan was current as of June 30, 2011. The note receivable is not considered impaired and no impairment was recorded at June 30, 2011.