Loans (Notes)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Loans

12. LOANS

Loans had been extended: (i) by VIEs which are consolidated by Ambac under ASC Topic 810 as a result of Ambac’s financial guarantees of the VIEs’ note liabilities and/or assets and (ii) to certain institutions in connection with various transactions.

Loans extended by consolidated VIEs are generally carried at fair value on the Consolidated Balance Sheets. See Note 3. Variable Interest Entities for further information about VIEs for which the assets and liabilities are carried at fair value.

Other loans had an outstanding principal balance of $19 and $19 at December 31, 2019 and 2018, respectively. The effective interest rate on these loans ranged from 6.51% to 7.35% and 6.51% to 8.60% at December 31, 2019 and 2018, respectively. The maturity date of these loans ranged from June 2026 to December 2046 as of December 31, 2019. Collectability of these loans is evaluated on an ongoing basis; no loan has been considered impaired and as such no loan impairments have been recorded as of December 31, 2019 and 2018