Credit Facilities

12 Months Ended

Dec. 31, 2019

Credit Facilities and Investor Notes Payable [Abstract]

Credit Facilities

Note 10. Credit Facilities

The Company has two secured credit facilities. The facilities are non-revolving and do not have an option to renew or extend additional credit. Additionally, the facilities do not contain a prepayment penalty. Under the terms of the credit facilities, the Company must maintain a minimum collateralization ratio of at least 110% for each of the individual facilities (120% for the combined facilities). If at any time the Company fails to maintain its required minimum collateralization ratio, it will be required to deliver cash or qualifying mortgage loans in an amount sufficient to enable us to meet its obligation to maintain a minimum collateralization ratio. In total, the collateral securing both facilities at December 31, 2019 and 2018 satisfied the 120% minimum. In addition, the collateral securing both facilities at December 31, 2019 and 2018 separately satisfied the 110% minimum. As of December 31, 2019 and 2018, the Company has only pledged qualifying mortgage loans as collateral on the credit facilities.

In addition, the credit facilities include a number of borrower covenants. The Company is following these covenants as of December 31, 2019 and December 31, 2018, respectively.

The following table summarizes the principal terms the Company’s credit facilities as of December 31, 2019 (dollars in millions):

Nature of Borrowing

Interest Rate

Interest Rate Type

Monthly Payment

Maturity Date

Loan Collateral Pledged

Cash Pledged

Term-debt

2.53%

Fixed

579

11/1/2026

85,914

—

Future principal contractual payments of the Company’s borrowings from financial institutions during the twelve-month periods ending December 31, are as follows (dollars in thousands):

2020	$	5,164
2021		5,341
2022		5,477
2023		5,617
2024		5,757
Thereafter		44,071
	$	71,427