NOTE 7 – PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION

The Partnership makes loans available to those general partners who require financing for some or all of their Partnership capital contributions except for members of the Executive Committee (as defined in the Partnership Agreement). In limited circumstances a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. It is anticipated that a majority of future general and subordinated limited partnership capital contributions (other than for Executive Committee members) requiring financing will be financed through Partnership loans. Loans made by the Partnership to partners are generally for a period of one year but are expected to be renewed and bear interest at the prime rate, as defined in the loan documents. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans financed through the Partnership is reflected as a reduction to total Partnership capital. As of December 31, 2015 and 2014, the outstanding amount of Partnership loans financed through the Partnership was $218 and $198, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $8, $7 and $8 for the years ended December 31, 2015, 2014 and 2013, respectively.

The minimum 7.5% annual return on the face amount of limited partnership capital was $69, $48 and $48 for the years ended December 31, 2015, 2014 and 2013, respectively. These amounts are included as a component of interest expense in the Consolidated Statements of Income.

The following table shows the roll forward of outstanding Partnership loans for the years ended December 31, 2015 and 2014:

	2015			2014
Partnership loans outstanding at beginning of year	$	198		$	215
Partnership loans issued during the year		119			86
Repayment of Partnership loans during the year		(99	)		(103	)
Total Partnership loans outstanding	$	218		$	198

The Partnership filed a Registration Statement on Form S-8 with the Securities and Exchange Commission ("SEC") on January 17, 2014, to register $350 of Interests to be issued pursuant to the Partnership's 2014 Employee Limited Partnership Interest Purchase Plan (the "Plan"). On January 2, 2015, the Partnership issued $292 of Interests in connection with the Plan. In addition, on January 4, 2016, the Partnership issued additional Interests to individuals participating in retirement transition plans pursuant to the Plan. The remaining $58 of Interests may be issued in connection with the Plan at the discretion of the Partnership in the future.