Foreclosed Assets

9 Months Ended

Feb. 28, 2014

Foreclosed Assets

Foreclosed Assets

(4) Foreclosed Assets

 

Assets received in satisfaction of loan receivables are initially recorded at fair value when received and subsequently evaluated for impairment. These assets are classified on the condensed consolidated balance sheets as foreclosed assets. At February 28, 2014, all foreclosed assets were held by DRP and CAH, which are wholly-owned subsidiaries of CFC.

The activity for foreclosed assets is summarized below:

	Nine Months Ended February 28, 2014
(Dollars in thousands)	CAH		DRP		Total
Balance as of May 31, 2013	$	248,049	$	13,423	$	261,472
Results of operations		(7,853)		(629)		(8,482)
Cash investments (proceeds)		7,410		(5,250)		2,160
Balance as of February 28, 2014	$	247,606	$	7,544	$	255,150

During the nine months ended February 28, 2014, our investment in the DRP foreclosed assets decreased primarily due to net cash proceeds received of $5 million from the sale of raw land and developed lots and bonds reimbursements received.