NOTE 15 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

In the ordinary course of its business operations, the Company has sponsored and manages investment entities. Additionally, it has ongoing relationships with several related entities. The following table details these receivables and payables (in thousands):



	March 31, 2015		December 31, 2014
Receivables from managed entities and related parties, net:
Real estate investment entities ⁽¹⁾	$	20,326	$	23,733
Commercial finance investment entities ⁽²⁾	2,738		2,883
Financial fund management investment entities	1,093		663
Other	325		488
Loan receivable from CVC Credit Partners	2,305		2,536
Receivables from managed entities and related parties	$	26,787	$	30,303

Payables due to managed entities and related parties, net:
Real estate investment entities ⁽³⁾	$	2,096	$	2,942
Other	69		73
Payables to managed entities and related parties	$	2,165	$	3,015


(1)	Includes a $113,000 reserve for credit losses for management fees due from one of the Company's real estate investment entities: there was no reserve at December 31, 2014.


(2)	Amounts shown are net of reserves for credit losses of $17.2 million and $17.0 million as of March 31, 2015 and December 31, 2014, respectively, related to management fees due from one of the Company's commercial finance investment entities that, based on estimated cash distributions, are not expected to be collectible.


(3)	Reflects $2.0 million and $2.6 million in self-insurance funds provided by the Company's real estate investment entities as of March 31, 2015 and December 31, 2014, respectively, which are held in escrow by the Company to cover claims.

The Company receives fees, dividends and reimbursed expenses from several related/managed entities. In addition, the Company reimburses related entities for certain operating expenses. The following table details those activities (in thousands):



	Three Months Ended
	March 31,
	2015			2014
Fees from unconsolidated investment entities:
Real estate ⁽¹⁾	$	9,434		$	8,925
Financial fund management	782			802
CVC Credit Partners – reimbursement of net costs and expenses	229			181
RRE Opportunity REIT I:
Reimbursement of costs and expenses	888			351
Dividends paid	15			29
RRE Opportunity REIT II:
Reimbursement of costs and expenses	737			502
Dividends paid	7			—
LEAF:
Payment for sub-servicing the commercial finance investment partnerships	(23		)	(127		)
Reimbursement of net costs and expenses	36			36
1845 Walnut Associates Ltd:
Payment for rent and related expenses	(207		)	(204		)
Property management fees	38			16
Brandywine Construction & Management, Inc. – payment for property management of hotel property	(52		)	(40		)
Atlas Energy, L.P. – reimbursement of net costs and expenses	13			30
Ledgewood P.C. – payment for legal services	(34		)	(24		)
Graphic Images, LLC – payment for printing services	(48		)	(60		)
The Bancorp, Inc. – reimbursement of net costs and expenses	—			27
9 Henmar LLC – payment of broker/consulting fees	(3		)	(3		)


(1)	Reflects the reversal of discounts of $207,000 and $33,000 for the three months ended March 31, 2015 and 2014, respectively, in connection with management fees from the Company's real estate investment entities that it expects to receive in future periods.


(2)	During the three months ended March 31, 2015 and 2014, the Company waived $49,000 and $224,000, respectively, of management fees from its commercial finance investment entities.

Relationship with Opportunity REIT I. As of March 31, 2015 and December 31, 2014, the Company had a receivable of $725,000 and $325,000, respectively, for reimbursement of costs and expenses associated with the formation and operating expenses of Opportunity REIT I.

Relationship with Opportunity REIT II. On February 6, 2014, Opportunity REIT II commenced its initial public offering of up to $1.0 billion in common stock at a maximum price of $10 per share. This fund focuses on acquiring under-performing multifamily rental properties, distressed real estate and performing loans and is externally managed by Resource Real Estate, a subsidiary of the Company. As of March 31, 2015 and December 31, 2014, the Company had a $587,000 and $3.4 million receivable from Opportunity REIT II for offering costs and operating expense reimbursements. On June 14, 2014, the Company had provided a $1.3 million short-term bridge loan to Opportunity REIT II with interest at LIBOR plus 300 basis points which was repaid in full by June 30, 2014.

Relationship with CVC Credit Partners. On May 6, 2014, the Company made a €1.5 million bridge loan to CVC Credit Partners with interest accruing at a rate of the Euro Interbank Offered Rate ("EURIBOR") plus 7%. In connection with the original loan agreement, the Company made an additional advance of €500,000 on December 8, 2014. In September 2014, the Company and CVC agreed to extend the maturity of the note until April 2015 and, in March of 2015, further extended the maturity to September 30, 2015.

Advances to Real Estate Limited Partnership. The Company made advances to one of its affiliated real estate limited partnerships under a revolving note of up to $3.0 million bearing interest at the prime rate. Advances outstanding of $2.3 million as of March 31, 2014 were repaid in full on December 16, 2014. The Company recorded $17,000 of interest income on this loan during the three months ended March 31, 2014.

In February 2014, the Company loaned a non-executive employee $300,000 under a promissory note bearing interest at 3-month LIBOR plus 3%, resetting annually. In December 2014, the Company amended the terms of the note to provide for an initial repayment of $50,000 plus accrued interest, which was paid on March 15, 2015, with the remaining principal and interest due in full on March 15, 2016.