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):



	September 30, 2015		December 31, 2014
Receivables from managed entities and related parties, net:
Real estate investment entities	$	21,878	$	23,733
Commercial finance investment entities ⁽¹⁾	1,758		2,883
Financial fund management investment entities	1,169		663
Other	333		488
Loan receivable from CVC Credit Partners	—		2,536
Receivables from managed entities and related parties	$	25,138	$	30,303

Payables due to managed entities and related parties, net:
Real estate investment entities ⁽²⁾	$	4,379	$	2,942
Other	38		73
Payables to managed entities and related parties	$	4,417	$	3,015


(1)	Amount for December 31, 2014 is shown net of reserves for credit losses of $17.0 million related to management fees due from one of the Company's commercial finance investment entities that, based on estimated cash distributions, was not expected to be collectible.


(2)	Includes $4.1 million and $2.6 million in self-insurance funds provided by the Company's real estate investment entities as of September 30, 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						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Fees from unconsolidated investment entities:
Real estate ⁽¹⁾	$	11,464		$	8,992		$	33,071		$	26,436
Financial fund management	774			794			2,341			2,861
Commercial finance ⁽²⁾	—			—			—			—
CVC Credit Partners: reimbursement of net costs and expenses	219			211			694			836
Opportunity REIT I:
Reimbursement of costs and expenses	817			641			2,639			1,556
Dividends paid	87			30			131			88
Opportunity REIT II:
Reimbursement of costs and expenses	722			642			2,221			1,590
Dividends paid	42			—			62			—
Innovation Office REIT:
Reimbursement of costs and expenses	283			—			1,486			—
LEAF:
Payment for sub-servicing the commercial finance investment partnerships	(12		)	(52		)	(53		)	(253		)
Reimbursement of net costs and expenses	36			31			113			95
1845 Walnut Associates Ltd:
Payment for rent and related expenses	(213		)	(154		)	(629		)	(561		)
Property management fees	47			56			123			149
Brandywine Construction & Management, Inc.: payment for property management of hotel property	(67		)	(57		)	(200		)	(169		)
Atlas Energy, L.P. : reimbursement of net costs and expenses	99			52			123			124
Ledgewood P.C.: payment for legal services	(3		)	(98		)	(92		)	(165		)
Graphic Images, LLC: payment for printing services	(36		)	(27		)	(120		)	(116		)
The Bancorp, Inc.: reimbursement of net costs and expenses	—			29			—			84
9 Henmar LLC: payment of broker/consulting fees	(4		)	(3		)	(21		)	(21		)


(1)	Includes the reversal of discounts of $35,000 and $245,000 for the three and nine months ended September 30, 2015, respectively, and $38,000 and $112,000 for the three and nine months ended September 30, 2014, respectively, in connection with management fees from the Company's real estate investment entities that it expects to receive in future periods.


(2)	The Company waived management fees from its commercial finance investment entities of $17,000 and $97,000 during the three and nine months ended September 30, 2015, respectively, and $105,000 and $605,000 during the three and nine months ended September 30, 2014, respectively.

Relationship with Opportunity REIT I. As of September 30, 2015 and December 31, 2014, the Company had a receivable of $238,000 and $325,000, respectively, for reimbursement of operating costs and expenses.

Relationship with Opportunity REIT II. As of September 30, 2015 and December 31, 2014, the Company had a $724,000 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 Innovation Office REIT. As of September 30, 2015, the Company had a receivable of $1.9 million from the Innovation Office REIT for reimbursement of offering costs and expenses.

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. On September 28, 2015, the loan and the associated interest were paid in full.

Advances to Real Estate Limited Partnership. The Company made an advance 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 September 30, 2014 were repaid in full on December 16, 2014. The Company recorded interest income on this loan of $19,000 and $56,000, respectively, for the three and nine months ended September 30, 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.

For certain relationships between the Company and RSO, reference is made to Note 19 - L. Related party transactions - RSO.