Forgivable Loans Receivable |
9 Months Ended | |
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Sep. 30, 2016 | ||
| 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 notes receivable balance is comprised of unsecured non-interest-bearing and interest-bearing loans (interest rates ranging up to 9%). These notes have various schedules for repayment or forgiveness based on production or retention requirements being met and mature at various dates through 2020. Forgiveness of loans amounted to $1.8 million as of September 9, 2016, 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 notes 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 September 9, 2016, no allowance for doubtful accounts was required. There were no unamortized loans outstanding attributable to registered representatives who ended their affiliation with the National broker dealer subsidiaries prior to the fulfillment of their obligation. |
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- References No definition available.
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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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