Loans generally are funded at a fixed interest rate with a loan term of up to five years. At September 30, 2018, a larger percentage of the partnership’s secured loan portfolio is been secured by collateral located in the San Francisco Bay Area when compared to the secured loan portfolio at December 31, 2017 (68.4% and 63.3%, respectively).Loans acquired are generally done so within the first six months of origination, and purchased at the current par value, which approximates fair value. As of September30, 2018, 45 (80%) of the partnership’s 56 loans (representing 97% of the aggregate principal of the partnership’s loan portfolio) had a loan term of five years or less from inception.The remaining loans have terms longer than five years.Substantially all loans are written without a prepayment-penalty clause. As of September30, 2018, 24 (43%) of the loans outstanding (representing 69% of the aggregate principal of the partnership’s loan portfolio) provide for monthly payments of interest only, with the principal due in full at maturity. The remaining loans require monthly payments of principal and interest, typically calculated on a 30 year amortization, with the remaining principal balance due at maturity. In September 2018, one interest only secured loan, with principal of $5,355,000, was funded net of12 months of interest (approximately $455,000). Interest on this loan began accruing on October 1, 2018. In the event that this loan pays off in full prior to its scheduled maturity of September 30, 2019, the remaining unearned interest income will be applied as a reduction of principal. In October 2018, one loan with principal of approximately $14,000,000 paid off in full. The loan was scheduled to mature on January 1, 2019.