15. Notes Payable

Effective December 31, 2012, CAM acquired a third party’s 32.2% participant interest in a non-performing commercial real estate loan held by CAM for $9.0 million payable pursuant to a promissory note. The note had an effective date of December 31, 2012 and matures on February 1, 2020. The note bears interest at the “Wall Street Journal Prime Rate” plus 100 basis points per annum and is payable monthly. The note is payable interest only for the first year and commencing on January 1, 2014 and continuing each succeeding month, CAM is required to make $27,000 of monthly principal payments. CAM completed the foreclosure on the underlying property of the non-performing commercial loan in November 2013 and the $9.0 million note is currently secured by a mortgage on the property. The $30.7 million property is included in real estate held-for-investment in the Company’s Consolidated Statement of Financial Condition as of December 31, 2013. The note may be prepaid in whole or in part without a prepayment fee. BBX Capital provided the participant a $4.5 million unconditional limited guaranty to further support the repayment of the note. The note was recorded at a $0.5 million discount as the fair value of the participant’s interest in the collateral had a fair value less cost to sell of $8.5 million as of December 31, 2012. The promissory note outstanding balance, net of the discount, was $8.6 million and $8.5 million as of December 31, 2013 and 2012, respectively.

CAM also acquired a third party’s 50% participant interest in a foreclosed real estate property for $2.5 million payable pursuant to a note. The note had an effective date of December 31, 2012, matures on December 31, 2017, and bears interest at a fixed rate of 8.00% per annum. The note is interest-only payable monthly until maturity. The $2.5 million note may be prepaid in whole or in part without a prepayment fee. The note was recorded at a $0.7 million discount as the fair value of the participant’s interest in the property had a fair value less cost to sell of $1.8 million. The $2.5 million note was paid-in-full in December 2013. The remaining discount of $0.6 million was recognized in interest expense in the Company’s Statement of Operations for the year ended December 31, 2013.

The annual maturities of note payable as of December 31, 2013 was as follows (in thousands):



Year Ending		Note
December 31,		Payable
2014		324
2015		324
2016		324
2017		324
2018		324
Thereafter		7,380
Total	$	9,000