Note 7. Borrowed Funds

Short-term borrowings consist of funds with remaining maturities of one year or less, and long-term debt consists of borrowings with remaining maturities greater than one year. The components of short-term borrowings and long-term debt as of June 30, 2015 and December 31, 2014 are provided below:

	June 30,		December 31,
(in thousands) (1)	2015		2014
Short-term borrowings
Federal funds purchased	$	—	$	320,000
Current portion of nonrecourse debt (2)	6,322		2,861

Total short-term borrowings	$	6,322	$	322,861


Long-term debt
Senior notes:
City National Corporation - 5.25% Senior Notes Due September 2020	$	299,578	$	299,540
Subordinated debt:
City National Bank - 9.00% Subordinated Notes Due August 2019	75,000		75,000
City National Bank - 5.375% Subordinated Notes Due July 2022	149,995		149,994
Junior subordinated debt:
Floating Rate Business Bancorp Capital Trust I Securities due November 2034 (3)	5,155		5,155
Nonrecourse debt (2)	101,220		99,139
Other long-term debt (4)	9,669		9,772

Total long-term debt	$	640,617	$	638,600

(1)	The carrying value of certain borrowed funds is net of discount which is being amortized into interest expense.
(2)	Nonrecourse debt bears interest at an average rate of 3.84 percent as of June 30, 2015 and has maturity dates ranging from September 2015 to February 2023.
(3)	These floating rate securities bear interest of three-month LIBOR plus 1.965 percent which is reset quarterly. As of June 30, 2015, the interest rate was approximately 2.25 percent.
(4)	Other long-term debt includes a note payable that bears a fixed interest rate of 5.64 percent and is scheduled to mature in June 2017.

The Company holds debt affiliated with First American Equipment Finance (“FAEF”), its wholly-owned equipment finance subsidiary. FAEF assigns the future rentals of certain lease financing loans to financial institutions on a nonrecourse basis at fixed interest rates. In return for future minimum lease rentals assigned, FAEF receives a discounted cash payment. Proceeds from discounting are reflected in the table above as nonrecourse debt.