Quarterly report pursuant to Section 13 or 15(d)

Forgivable Loans Receivable

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Forgivable Loans Receivable
 9 Months Ended
Sep. 30, 2018
Forgivable Loans Receivable [Abstract]  
Forgivable Loans Receivable
5.
Forgivable Loans Receivable
 
From time to time, National’s operating subsidiaries may make loans, evidenced by promissory notes, primarily to newly recruited independent financial advisors as an incentive for their affiliation. The loans receivable balance is comprised of unsecured non-interest-bearing and interest-bearing loans (weighted average interest rate of 4%). These loans have various schedules for repayment or forgiveness based on production or retention requirements being met and mature at various dates through 2023. Forgiveness of loans amounted to $0.5 million and $0.5 million for the nine months ended June 30, 2018 and 2017, respectively, and the related compensation was included in commissions, compensation and fees in the condensed consolidated statements of operations. In the event the advisor’s affiliation with the subsidiary terminates, the advisor is required to repay the unamortized balance of any loans payable.
 
National provides an allowance for doubtful accounts on the notes based on historical collection experience and continually evaluates the receivables for collectability and possible write-offs where a loss is deemed probable. As of June 30, 2018 and September 30, 2017, no allowance for doubtful accounts was required.
 
There were no unamortized forgivable loans outstanding at June 30, 2018 and September 30, 2017 attributable to registered representatives who ended their affiliation with National’s subsidiaries prior to the fulfillment of their obligation.