Mortgages Notes Payable

9 Months Ended

Sep. 30, 2015

The Company's mortgage notes payable consist of the following:



(Dollar amounts in thousands)	Encumbered Properties ⁽¹⁾	Outstanding Loan Amount		Weighted Average Effective Interest Rate ⁽²⁾⁽³⁾		Weighted Average Maturity ⁽³⁾
September 30, 2015	5	$	11,246	4.12	%	1.46
December 31, 2014	5	$	11,246	4.12	%	2.20

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(1) Carrying amount for these properties as of September 30, 2015 was $27.4 million under the liquidation basis of accounting and $19.4 million at December 31, 2014 under the going concern basis of accounting.

(2) Interest rates are fixed rates or fixed through the use of derivative instruments used for interest rate hedging purposes.

(3) Total calculated on a weighted average basis for all mortgages outstanding at September 30, 2015 and December 31, 2014.

The following table summarizes the scheduled aggregate principal payments subsequent to September 30, 2015:



(In thousands)	Future Principal Payments
2015	$	—
2016	—
2017	11,246
2018	—
2019	—
Thereafter	—
	$	11,246

A mortgage loan in the amount of $1.5 million is subject to a prepayment fee of 2.0% if paid prior to November 1, 2016. The prepayment fee is accrued in liability for estimated costs in excess of estimated receipts during liquidation on the consolidated statement of net assets at September 30, 2015.

The Company's sources of recourse financing generally include financial covenants, including restrictions on corporate guarantees, the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of minimum net worth. As of September 30, 2015, the Company was in compliance with the covenants under the loan agreements.

American Realty Capital Daily Net Asset Value Trust, Inc. 10-Q