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Notes Payable | 12 Months Ended
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Dec. 31, 2013
Notes Payable [Abstract] |
Notes Payable | Notes Payable Notes payable consists of the following:
|  |  |  |  | December 31,
| Lender | Interest Rate | Expiration |  | 2013 |  | 2012
|  |  |  |  | (Amounts in thousands)
Secured credit facility | Bank of America | LIBOR plus 40 basis points | July 31, 2016 |  | $ | 120,000 |  |  | $ | 120,000 |
Secured loan | Union Bank | LIBOR plus 40 basis points | January 2, 2015 |  | 20,000 |  |  | 20,000 |
Unsecured credit facility | Bank of America and Union Bank | (1) | June 30, 2018 |  | 50,000 |  |  | 0 |
Total |  |  |  |  | $ | 190,000 |  |  | $ | 140,000 |
__________
(1) | On July 2, 2013, the Company entered into an unsecured $200 million five-year revolving credit facility. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25%. Commitment fees for undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25%. In 2013, the interest rate was LIBOR plus 112.5 basis points on the $50 million of borrowings and 12.5 basis points on the undrawn portions of the credit facility.
The $120 million credit facility and $20 million bank loan are secured by municipal bonds held as collateral. These secured notes call for the collateral requirement to be greater than the loan amount. The collateral requirement is calculated as the fair market value of the municipal bonds held as collateral multiplied by the advance rates, which vary based on the credit quality and duration of the assets held and range between 75% and 100% of the fair value of each bond. The bank loan and credit facilities contain financial covenants pertaining to minimum statutory surplus, debt to capital ratio, and risk-based capital (“RBC”) ratio. The Company was in compliance with all of its loan covenants at December 31, 2013. The aggregated maturities for notes payable are as follows:
Year |  | Maturity
|  | (Amounts in thousands)
2014 |  | $ | 0 |
2015 |  | $ | 20,000 |
2016 |  | $ | 120,000 |
2017 |  | $ | 0 |
2018 |  | $ | 50,000 |
For additional disclosures regarding methods and assumptions used in estimating fair values of interest rate swap agreements associated with the Company’s loans listed above, see Note 7.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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