
($ in thousands)		Principal Outstanding as of				Maturity
Loan	Payment Terms	September 30, 2019		December 31, 2018		Date
Mortgage Note (1)	Principal & interest due at maturity	$	1,800	$	1,840	1/15/2017
Mortgage Note (2)	Principal & interest due at maturity		234		234	12/7/2028
Note Receivable (3)	Principal due at maturity & interest due monthly		2,145		2,145	3/16/2022
Mortgage Note (4)	Principal & interest due at maturity		1,647		1,647	3/1/2020
Mortgage Note (5)	Principal & interest due at maturity		-		5,125	8/19/2020
Mortgage Note (6)	Principal & interest due at maturity		62		62	12/31/2018
Line of Credit (7)	Principal & interest due at maturity		-		106	11/15/2018
Line of Credit (8)	Principal & interest due at maturity		988		-	11/15/2019
Total outstanding principal			6,876		11,159
Points paid, net of direct issuance costs			-		-
Interest receivable (net prepaid interest)			1,254		947
Provision for interest receivable			(365)		(229)
Total notes and interest receivable		$	7,765	$	11,877

(1)

In January 2016, the maturity date of the note was extended to January 15, 2017 with year one interest received at the time of the extension and principal and remaining interest due at maturity. On July 28, 2017, the Company notified the borrower of default under the Promissory Note. The Company currently believes that collectability is reasonably assured as the fair value of the mortgaged farm is greater than the amount owed under the loan. As of the date of this report, the Company and a court-appointed receiver are pursuing a sale of the property.

(2)

The original note was renegotiated during the three months ended March 31, 2017. Later the terms of the note were modified pursuant to the borrower’s reorganization plan, requiring annual payments of interest and principal.

(3)

Land acquired at a below-market-price, leased back to the seller who also has a repurchase right at below-market price. The transaction is accounted for as a financing transaction, with the rent paid by the seller being accounted for as interest payment. The seller’s repurchase right expires on 3/16/2022.

(4)

On April 17, 2018, the Company amended the loan to extend the term of the loan through March 1, 2020 and increased the interest rate to 7.5% per annum.

(5)

During the three months ended June 30, 2019 the outstanding amount on this loan was fully repaid.

(6)

On April 2, 2018, the Company entered into a loan secured against farm equipment. As the borrower is working through bankruptcy proceedings the Company will settle this balance through the bankruptcy process. The Company does not expect to incur any material losses.

(7)

During the three months ended June 30, 2019 the outstanding amount on this loan was fully repaid.

(8)

In 2019, the Company entered into a line of credit relationship with a tenant farmer with this line of credit secured against growing crops on the farms farmed by the tenant. The Company is awaiting bankruptcy court approval of the related documentation.