19. Interest Rate Derivatives

The following table summarizes the Partnership’s interest rate derivatives, except for interest rate swaps, at December 31, 2017 and 2016:

Purchase Date	Notional Amount		Maturity Date	Effective Capped Rate ⁽¹⁾			Index	Variable Debt Financing Facility Hedged ⁽¹⁾	Counterparty	Fair Value as of December 31, 2017
July 2014	$	30,652,294	Aug 2019		3.0	%	SIFMA	M31 TEBS	Barclays Bank PLC	$	169
July 2014		30,652,294	Aug 2019		3.0	%	SIFMA	M31 TEBS	Royal Bank of Canada		169
July 2014		30,652,294	Aug 2019		3.0	%	SIFMA	M31 TEBS	SMBC Capital Markets, Inc		169
July 2015		27,666,739	Aug 2020		3.0	%	SIFMA	M33 TEBS	Wells Fargo Bank		3,213
July 2015		27,666,739	Aug 2020		3.0	%	SIFMA	M33 TEBS	Royal Bank of Canada		3,213
July 2015		27,666,739	Aug 2020		3.0	%	SIFMA	M33 TEBS	SMBC Capital Markets, Inc		3,213
June 2017		91,956,883	Aug 2019		1.5	%	SIFMA	M31 TEBS	Barclays Bank PLC		160,174
June 2017		83,000,217	Aug 2020		1.5	%	SIFMA	M33 TEBS	Barclays Bank PLC		425,978
Sept 2017		59,935,000	Sept 2020		4.0	%	SIFMA	M24 TEBS	Barclays Bank PLC		923
										$	597,221

Purchase Date	Notional Amount		Maturity Date	Effective Capped Rate ⁽¹⁾			Index	Variable Debt Financing Facility Hedged ⁽¹⁾	Counterparty	Fair Value as of December 31, 2016
Sept 2010	$	29,855,000	Sept 2017		3.0	%	SIFMA	M24 TEBS	Bank of New York Mellon	$	2
Sept 2010		29,855,000	Sept 2017		3.0	%	SIFMA	M24 TEBS	Barclays Bank PLC		2
Sept 2010		29,855,000	Sept 2017		3.0	%	SIFMA	M24 TEBS	Royal Bank of Canada		2
Aug 2013		89,565,000	Sept 2017		1.5	%	SIFMA	M24 TEBS	Deutsche Bank		619
Feb 2014		41,250,000	March 2017		1.0	%	SIFMA	PHC TOB Trusts	SMBC Capital Markets, Inc		2
July 2014		31,028,195	Aug 2019		3.0	%	SIFMA	M31 TEBS	Barclays Bank PLC		34,614
July 2014		31,028,195	Aug 2019		3.0	%	SIFMA	M31 TEBS	Royal Bank of Canada		34,614
July 2014		31,028,195	Aug 2019		3.0	%	SIFMA	M31 TEBS	SMBC Capital Markets, Inc		34,614
July 2015		27,940,701	Aug 2020		3.0	%	SIFMA	M33 TEBS	Wells Fargo Bank		93,045
July 2015		27,940,701	Aug 2020		3.0	%	SIFMA	M33 TEBS	Royal Bank of Canada		93,045
July 2015		27,940,701	Aug 2020		3.0	%	SIFMA	M33 TEBS	SMBC Capital Markets, Inc		93,045
										$	383,604

(1) For additional details, see Note 25 to the Partnership's condensed consolidated financial statements.

In June 2017, the Partnership purchased two interest rate derivatives to roll down the effective capped rate on the M31 and M33 TEBS Financings to 1.5%. The Partnership paid approximately $139,000 and $358,000 for the interest rate derivatives, respectively.

In September 2017, the Partnership purchased an interest rate derivative on the M24 TEBS Financing to cap the variable interest rate at 4.0%. The Partnership paid approximately $59,000 for the interest rate derivative.

The Partnership has contracted for two interest rate swaps with DB. On a quarterly basis, the Partnership reassesses its interest rate swap positions. In the second quarter of 2017, the Partnership determined that due to the stabilization of the Decatur Angle and Bruton MRB properties and securitization of the related MRBs into fixed rate Term A/B Trust financings, the interest rate swaps were not needed to mitigate interest rate risk on financings related to the MRBs. The Partnership then determined that the interest rate swaps are intended to mitigate interest rate risk for the variable rate PHC TOB Trusts. The following table summarizes the terms of the interest rate swaps at December 31, 2017 and 2016:

Purchase Date	Notional Amount		Effective Date	Termination Date	Fixed Rate Paid			Period End Variable Rate Received			Variable Rate & Index	Counterparty	December 31, 2017 - Fair Value of Liability
Sept 2014	$	22,821,429	Oct 2016	Oct 2021		1.96	%		1.08	%	70% 30-day LIBOR	Deutsche Bank	$	(402,261	)
Sept 2014		18,051,775	April 2017	April 2022		2.06	%		1.08	%	70% 30-day LIBOR	Deutsche Bank		(424,591	)
													$	(826,852	)

Purchase Date	Notional Amount		Effective Date	Termination Date	Fixed Rate Paid			Period End Variable Rate Received			Variable Rate & Index	Counterparty	December 31, 2016 - Fair Value of Liability
Sept 2014	$	22,975,228	Oct 2016	Oct 2021		1.96	%		0.53	%	70% 30-day LIBOR	Deutsche Bank	$	(738,574	)
Sept 2014		18,126,731	April 2017	April 2022		2.06	%	N/A			70% 30-day LIBOR	Deutsche Bank		(600,709	)
													$	(1,339,283	)

The Partnership is required to fund a cash collateral account at DB for an amount greater than or equal to the fair value of the interest rate swaps. Such cash balances were approximately $850,000 and $1.4 million at December 31, 2017 and 2016, respectively, and are reported within restricted cash on the consolidated balance sheets.

These interest rate derivatives and interest rate swaps are not designated as hedging instruments and, accordingly, they are recorded at fair value with changes in fair value included in current period earnings as interest expense. See Note 25 for a description of the methodology and significant assumptions for determining the fair value of the interest rate derivatives and interest rate swap arrangements. The interest rate derivatives are presented within other assets and the interest rate swap arrangements are reported as a derivative swap liability on the consolidated balance sheets.