13. OTHER ASSETS AND ACCOUNTS PAYABLE AND OTHER LIABILITIES

Other assets included:



OTHER ASSETS
(Dollars in Thousands)

	December 31, 2013		December 31, 2012
Deferred costs	$	644	$	-
Note receivable		1,849		-
Prepaid expenses		2,226		2,329
Prepaid income taxes		146		-
Security deposits		2,492		2,755
Miscellaneous other assets		146		24
Cost method investment		235		-
Furniture, equipment, and leasehold improvements, net		2,054		2,273
Intangible assets		483		332
Equity method affiliates		(31)		1,910
Other assets	$	10,244	$	9,623

Accounts payable and other liabilities included:



ACCOUNTS PAYABLE AND OTHER LIABILITIES
(Dollars in Thousands)

	December 31, 2013		December 31, 2012
Accounts payable	$	738	$	1,143
Rent payable		1,058		1,032
Accrued interest payable		376		308
Payroll taxes payable		1,055		1,577
Accrued income taxes		-		1,434
Guarantee liability		-		1,084
Settlement payable		-		4,467
Deferred income		-		498
Mandatorily redeemable equity interests		-		86
Other general accrued expenses		4,994		1,451
Accounts payable and other liabilities	$	8,221	$	13,080

See note 18 regarding mandatorily redeemable equity interests. The settlement payable related to an agreement reached during the second quarter of 2012 between the Company’s former broker-dealer subsidiary, CCS, and the Trustee for the Liquidation Trust for Sentinel Management Group, Inc. to settle two legal actions brought against CCS in 2009. This liability was fully extinguished during the third quarter of 2013. Prior to the Merger, AFN had entered into an arrangement whereby it guaranteed a portion of a particular loan that was owned by the Alesco XIV securitization. This arrangement was accounted for as a guarantee and we recorded a liability of $1,084 at the Merger Date. In May 2013, the underlying loan was paid off in full by the borrower. As a result our guarantee was extinguished. We recorded other revenue of $1,084 in the second quarter of 2013 and reversed the liability. Accrued income tax payable in 2012 included an accrual for an uncertain tax position. See note 21.