GUARANTEES AND COLLATERAL

6 Months Ended

Jun. 30, 2020

GUARANTEES AND COLLATERAL [Abstract]

GUARANTEES AND COLLATERAL

Note 9—Guarantees and Collateral

Guarantees

The Company has guaranteed the performance of payment obligations of certain of its subsidiaries under various debt agreements to third parties. The Company has guaranteed all MFH payment obligations and performance under the terms of the Company’s subordinated debt. However, the Company’s guarantee of the subordinated debt is subordinated to repayment of any senior debt of the Company. Additionally, contemporaneously with the execution of the revolving credit facility, the Company agreed to guarantee all payment and performance obligations of MEH under the credit agreement to the lenders. Furthermore, the Company agreed to guarantee all payment and performance obligations of the borrower associated with financing obtained in the second quarter of 2020 related to our direct investment in real estate that is in process of development. Currently, the Company expects that it will not need to make any payments under these guarantees.

Collateral and Restricted Assets

The following tables summarize assets that are either pledged or restricted for the Company’s use at June 30, 2020 and December 31, 2019:

	At
	June 30, 2020
			Investments						Total
	Restricted		in Debt		Investments in			Other	Assets
(in thousands)	Cash		Securities		Partnerships			Assets	Pledged
Debt related to the revolving credit facility	$	1,329	$	—	$	363,070	$	—	$	364,399
Debt related to TRS agreement		10,020		23,874		—		—		33,894
Debt related to the Company's REO		250		—		—		14,526		14,776
Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF		1,374		—		1,994		2,709		6,077
Interest rate swaps		4,319		—		—		—		4,319
Other		8		—		—		—		8
Total	$	17,300	$	23,874	$	365,064	$	17,235	$	423,473

	At
	December 31, 2019
					Total
	Restricted		Investments in		Assets
(in thousands)	Cash		Partnerships		Pledged
Debt related to the revolving credit facility	$	1,070	$	289,123	$	290,193
Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF		1,369		7,732		9,101
Interest rate swaps		1,803		—		1,803
Other		8		—		8
Total	$	4,250	$	296,855	$	301,105