Note 9—Guarantees and Collateral

Guarantees - LIHTC

At March 31, 2019 and December 31, 2018, the Company had one minimum yield guarantee associated with a nonconsolidated guaranteed LIHTC fund to indemnify the purchaser of the GP interest in that guaranteed LIHTC fund from investor claims related to such guarantee. This arrangement requires the Company to pay the fund investors any shortfall in the minimum guaranteed yield resulting from the recapture of tax credits due to foreclosure or from difficulties in maintaining compliance with LIHTC regulations with respect to the Lower Tier Property Partnerships (“LTPPs”) in which the guaranteed LIHTC fund is invested. The Company does not believe it would be required to perform under this guarantee because (i) the LIHTC fund’s yield exceeds the guaranteed minimum yield and prior to December 31, 2018, the LIHTC fund had delivered all tax credits to investors resulting in no additional future exposure to the Company because the future tax credit recapture risk was not large enough to reduce the actual yield below the guaranteed yield and (ii) as of March 31, 2019, all of the properties in the fund have reached the end of their tax credit compliance periods and we believe that the Company no longer has tax credit recapture risk because we believe all properties were in compliance through the end of their respective compliance periods. As such, at March 31, 2019 and December 31, 2018, the Company has measured the maximum exposure and the carrying value of this minimum yield guarantee associated with the nonconsolidated guaranteed LIHTC fund to be zero. This guarantee expires upon dissolution of the LIHTC fund, which is anticipated to occur by December 31, 2020.

The Company also had agreed to indemnify specific investors in non-guaranteed LIHTC funds related to the performance of one LTPP as of March 31, 2019 and December 31, 2018. If a third party failed to perform on its financial obligation relating to the property’s performance, the Company would be required to indemnify impacted investors. This indemnity stipulates a maximum obligation by the Company of $0.1 million and expires on December 31, 2022. However, the Company does not believe it would be required to perform under such indemnification or incur any losses based upon the operations of the LTPP. Based upon the foregoing, the Company has measured the maximum exposure to be $0.1 million and the carrying value of this indemnity to be zero at March 31, 2019 and December 31, 2018.

Collateral and Restricted Assets

The following tables summarize assets that are either pledged or restricted for the Company’s use at March 31, 2019 and December 31, 2018:


	At
	March 31, 2019
			Investments				Total
	Restricted		in Debt		Investments in		Assets
(in thousands)	Cash		Securities		Partnerships		Pledged
Debt and derivatives related to TRS agreements	$	4,312	$	70,001	$	─	$	74,313
Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF		1,348		─		8,728		10,076
Other		8		─		─		8
Total	$	5,668	$	70,001	$	8,728	$	84,397


	At
	December 31, 2018
			Investments				Total
	Restricted		in Debt		Investments in		Assets
(in thousands)	Cash		Securities		Partnerships		Pledged
Debt and derivatives related to TRS agreements	$	4,287	$	85,347	$	─	$	89,634
Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF		1,340		─		8,779		10,119
Other		8		─		─		8
Total	$	5,635	$	85,347	$	8,779	$	99,761