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Related Party Transactions
 3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions

9.           RELATED PARTY TRANSACTIONS

 

In the normal course of our business, affiliated Dealers assign Consumer Loans to us under the Portfolio and Purchase Programs.  Dealer Loans and Purchased Loans with affiliated Dealers are on the same terms as those with non-affiliated Dealers.  Affiliated Dealers are comprised of Dealers owned or controlled by: (1) our Chairman and significant shareholder; and (2) a member of the Chairman’s immediate family.

 

Affiliated Dealer Loan balances were $7.8 million and $7.5 million as of March 31, 2014 and December 31, 2013, respectively.  As of March 31, 2014 and December 31, 2013, affiliated Dealer Loan balances were 0.3% and 0.3% of total consolidated Dealer Loan balances.  A summary of related party Loan activity is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

For the Three Months Ended March 31,

 

 

2014

 

2013

 

 

Affiliated Dealer activity

 

% of consolidated

 

Affiliated Dealer activity

 

% of
consolidated

Dealer Loan revenue

 

$
0.4 

 
0.3 

%

 

$
0.3 

 
0.2 

%

New Consumer Loan assignments (1)

 

 
1.1 

 
0.2 

%

 

 
1.1 

 
0.3 

%

Accelerated Dealer Holdback payments

 

 

 –

 
0.0 

%

 

 

 –

 
0.3 

%

Dealer Holdback payments

 

 
0.4 

 
1.2 

%

 

 
0.6 

 
2.0 

%

 

(1)Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program.

 

Our Chairman and significant shareholder has indirect control over entities that, in the past, offered secured lines of credit to automobile dealers, and has the right or obligation to reacquire these entities under certain circumstances until December 31, 2014 or the repayment of the related purchase money note.