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Secured Borrowings

6 Months Ended

Jun. 30, 2011

Secured Borrowings

Secured Borrowings

15. Secured Borrowings

Pursuant to the First Amended and Restated Repurchase Purchase Agreement dated February 28, 2011 (“Master Repurchase Agreement”), ClearPoint was extended a $75.0 million secured mortgage warehouse line of credit which expires on March 10, 2012, in order to fund mortgage originations. This line of credit carries a floating rate of interest and is collateralized by ClearPoint’s mortgage loans. Outstanding borrowings were approximately $60.1 million as of June 30, 2011.

ClearPoint is required, among other things, to comply with certain financial covenants, including maintaining (i) a minimum tangible net worth ratio, (ii) a maximum leverage ratio, (iii) limitations on net losses, and (iv) a minimum level of liquid assets. As of June 30, 2011, ClearPoint was in compliance with all financial covenants for these facilities.

Included within Other assets is a cash collateral deposit of approximately $2.0 million as of June 30, 2011, which is held by the lender under the mortgage warehouse line of credit.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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