The following table shows the principal payments due on our notes payable through the next five years and thereafter (dollars in thousands):

2012	$	26,538
2013		-
2014		-
2015		1
2016		1
Thereafter		3
	$	26,543

Notes payable at December 31, 2011, bear interest at a rate of 4.25% and matures in 2012. As of December 31, 2011, there was accrued interest of $2.0 million. The mortgages are collateralized by deeds of trust on real estate with a net carrying value of $24.5 million. Of the total notes payable, the senior debt is $26.5 million.

This mortgage note represents the allocation of a note with an aggregate outstanding balance of $34.5 million as of December 31, 2011. The remaining balance of this note of $8.0 million is held on the books of Transcontinental Realty Investors, Inc., an affiliated entity. As a joint grantor of the mortgage loan, we have joint and several liability of the obligations and liabilities of the loan in its entirety, which include, but are not limited to, payment of all unpaid and accrued interest and principal for the entire outstanding loan balance. Since April 11, 2010, interest has accrued on the loan and as of April 12, 2011, the borrower is in default under the current loan documents and the lender accelerated the maturity of the indebtedness. On April 28, 2011, a forbearance agreement was entered into between the borrower, the guarantor and the lender in order to temporarily suspend the lender from the exercise of its rights and remedies under the loan documents and foreclose on the property. The forbearance period expires April 17, 2012 and requires the borrower to make monthly payments of $150,000. We are working on an extension of this agreement past the current expiration date. In addition, upon reconciliation of the balance due to the lender, an adjustment was made to the allocation of the loan balance between TCI and IOT. The total amount did not change but the allocations of payments were corrected to reflect the pro-rata share in correlation to the original loan balance allocation.