these investments may be venture capital style investments which may not be fully collateralized . medallion capital 's investments are typically in the form of secured debt instruments with fixed interest rates accompanied by membership interests and or warrants to purchase an equity interest for a nominal exercise price ( such warrants are included in equity investments on the consolidated balance sheets ) . interest income is earned on the debt instruments . we are a closed-end , management investment company under the 1940 act . we have elected to be treated as a bdc under the 1940 act . we have also elected to be treated for federal income tax purposes as a ric under subchapter m of the code . as a ric , we generally do not have to pay corporate-level federal income taxes on any net ordinary income or capital gains that we distribute to our shareholders as distributions if we meet certain source-of-income and asset diversification requirements . medallion bank is not a ric and must pay corporate-level us federal and state income taxes . our wholly-owned portfolio company , medallion bank , is a bank regulated by the fdic and the utah department of financial institutions which originates taxicab medallion , commercial , and consumer loans , raises deposits , and conducts other banking activities . medallion bank generally provides us with our lowest cost of funds which it raises through bank certificates of deposit issued to its customers . to take advantage of this low cost of funds , we refer a portion of our taxicab medallion and commercial loans to medallion bank , which then originates these loans . however , the fdic restricts the amount of taxicab medallion loans that medallion bank may finance to three times tier 1 capital , or $ 485,814,000 as of december 31 , 2015. we earn referral fees for these activities . all of these servicing activities have been assigned to msc . as a non-investment company , medallion bank is not consolidated with the company . realized gains or losses on investments are recognized when the investments are sold or written off . the realized gains or losses represent the difference between the proceeds received from the disposition of portfolio assets , if any , and the cost of such portfolio assets . in addition , changes in unrealized appreciation or depreciation on investments are recorded and represent the net change in the estimated fair values of the portfolio assets at the end of the period as compared with their estimated fair values at the beginning of the period . generally , realized gains ( losses ) on investments and changes in unrealized appreciation ( depreciation ) on investments are inversely related . when an appreciated asset is sold to realize a gain , a decrease in the previously recorded unrealized appreciation occurs . conversely , when a loss previously recorded as unrealized depreciation is realized by the sale or other disposition of a depreciated portfolio asset , the reclassification of the loss from unrealized to realized causes a decrease in net unrealized depreciation and an increase in realized loss . 41 our investment in medallion bank , as a wholly owned portfolio investment , is also subject to quarterly assessments of fair value . we conduct a thorough valuation analysis as described previously , and determine whether any factors give rise to a valuation different than recorded book value , including various regulatory restrictions that were established at medallion bank 's inception , by the fdic and state of utah , and also by additional marketplace restrictions , such as the ability to transfer industrial bank charters . because of these restrictions and other factors , our board of directors had previously determined that medallion bank had little value beyond its recorded book value . as a result of this valuation process , we had previously used medallion bank 's actual results of operations as the best estimate of changes in fair value , and recorded the results as a component of unrealized appreciation ( depreciation ) on investments . in the second quarter of 2015 , we became aware of external interest in medallion bank and its portfolio assets at values in excess of their book value . we incorporated these new factors in the medallion bank fair value analysis , and the board of directors determined that medallion bank had a fair value in excess of book value . we also engaged a valuation specialist to assist the board of directors in its determination of medallion bank 's fair value , and this appreciation of $ 15,500,000 was thereby recorded in 2015 as a component of unrealized appreciation ( depreciation ) on investments , in addition to medallion bank 's actual results of operations for the year ended december 31 , 2015 . 42 trends in investment portfolio our investment income is driven by the principal amount of and yields on our investment portfolio . to identify trends in the balances and yields , the following table illustrates our investments at fair value , grouped by medallion loans , commercial loans , equity investments , and investment securities , and also presents the portfolio information for medallion bank , at the dates indicated . replace_table_token_11_th ( 1 ) represents the weighted average interest or dividend rate of the respective portfolio as of the date indicated . ( 2 ) the weighted average interest rate for the entire managed loan portfolio ( medallion , commercial , and consumer loans ) was 9.03 % , 8.46 % , and 8.05 % at december 31 , 2015 , 2014 , and 2013 . story_separator_special_tag 48 equity investments equity investments were 1 % of our total portfolio at december 31 , 2015 , 2014 , and 2013. equity investments were less than 1 % , 1 % , and 1 % of our total managed portfolio at december 31 , 2015 , 2014 , and 2013. equity investments are comprised of common stock , warrants , preferred stock , and limited partnership interests . investment securities investment securities were 8 % , 0 % , and 0 % of our total portfolio at december 31 , 2015 , 2014 , and 2013. investment securities were 6 % , 2 % , and 2 % of our total managed portfolio at december 31 , 2015 , 2014 , and 2013. the investment securities are primarily u.s. treasury bills and adjustable-rate mortgage-backed securities purchased by medallion bank to better utilize required cash liquidity . trend in interest expense our interest expense is driven by the interest rates payable on our short-term credit facilities with banks , bank certificates of deposit , fixed-rate , long-term debentures issued to the sba , and other short-term notes payable . we established a medallion lending relationship with dz bank in december 2008 that provides for growth in the portfolio at generally lower rates than under prior facilities . in addition , medallion bank began raising brokered bank certificates of deposit during 2004 , which are at our lowest borrowing costs at december 31 , 2015. as a result of medallion bank raising funds through certificates of deposit as previously noted , we were able to transfer certain of our medallion loans and related assets to medallion bank at the time of the origination of medallion bank allowing us and our subsidiaries to use cash generated through these transactions to retire debt with higher interest rates . in addition , medallion bank is able to bid on these deposits at a wide variety of maturity levels which allows for improved interest rate management strategies . our cost of funds is primarily driven by the rates paid on our various debt instruments and their relative mix , and changes in the levels of average borrowings outstanding . see note 4 to the consolidated financial statements for details on the terms of all outstanding debt . our debentures issued to the sba typically have terms of ten years . we measure our borrowing costs as our aggregate interest expense for all of our interest-bearing liabilities divided by the average amount of such liabilities outstanding during the period . the following table shows the average borrowings and related borrowing costs for the years ended december 31 , 2015 , 2014 , and 2013. our average balances increased during the year reflecting recent portfolio growth and medallion bank 's average balances increased , reflecting the strong growth in the consumer loan portfolio . the decrease in our borrowing costs reflected the adjustable rate nature of much of our borrowings , and changes in our funding mix , and medallion bank 's borrowing costs increased reflecting the lengthening of the maturity profile of its certificates of deposits . replace_table_token_18_th 49 we will continue to seek sba funding to the extent it offers attractive rates . sba financing subjects its recipients to limits on the amount of secured bank debt they may incur . we use sba funding to fund loans that qualify under small business investment act ( sbia ) and sba regulations . we believe that financing operations primarily with short-term floating rate secured bank debt has generally decreased our interest expense , but has also increased our exposure to the risk of increases in market interest rates , which we mitigate with certain interest rate strategies . at december 31 , 2015 , 2014 , and 2013 , short-term adjustable rate debt constituted 75 % , 72 % , and 68 % of total debt , and was 23 % , 22 % , and 22 % on a fully managed basis including the borrowings of medallion bank . factors affecting net assets factors that affect our net assets include net realized gain or loss on investments and change in net unrealized appreciation or depreciation on investments . net realized gain or loss on investments is the difference between the proceeds derived upon sale or foreclosure of a loan or an equity investment and the cost basis of such loan or equity investment . change in net unrealized appreciation or depreciation on investments is the amount , if any , by which our estimate of the fair value of our investment portfolio is above or below the previously established fair value or the cost basis of the portfolio . under the 1940 act , our loan portfolio and other investments must be recorded at fair value . unlike certain lending institutions , we are not permitted to establish reserves for loan losses , but adjust quarterly the valuation of the investment portfolio to reflect our estimate of the current value of the total investment portfolio . since no ready market exists for our investments , fair value is subject to our board of directors ' good faith determination . in determining such fair value , our board of directors considers factors such as the financial condition of our borrowers and the adequacy of their collateral . any change in the fair value of portfolio investments or other investments as determined by our board of directors is reflected in net unrealized depreciation or appreciation on investments and affects net increase in net assets resulting from operations , but has no impact on net investment income or distributable income . our investment in medallion bank , as a wholly-owned portfolio investment , is also subject to quarterly assessments of fair value . we conduct a thorough valuation analysis as described previously , and also receive an opinion regarding the valuation from an independent third party to assist the board of directors in its determination of the fair

liquidity and capital resources our sources of liquidity are the revolving lines of credit with dz bank and with a variety of local and regional banking institutions , unfunded commitments to sell debentures to the sba , loan amortization and prepayments , private issuances of debt securities , and participations or sales of loans to third parties . as a ric , we are required to distribute at least 90 % of our investment company taxable income ; consequently , we have primarily relied upon external sources of funds to finance growth . trust iii 's $ 135,000,000 secured revolving line of credit with dz bank had $ 5,482,000 of availability , $ 11,568,000 was available under revolving credit agreements with commercial banks , and there were $ 3,000,000 unfunded commitments from sba . additionally , medallion bank , our wholly-owned , unconsolidated portfolio company has access to independent sources of funds for our business originated there , primarily through brokered certificates of deposit . at the current required capital levels , it is expected , although there can be no guarantee , that deposits of approximately $ 7,500,000 could be raised by medallion bank to fund future loan origination activities , and medallion bank also has $ 25,000,000 available under fed funds lines with several commercial banks . in addition , medallion bank , as a non-ric subsidiary of ours , is allowed to retain all earnings in the business to fund future growth . the components of our debt were as follows at december 31 , 2015. see note 4 to the consolidated financial statements on page f-18 for details of the contractual terms of our borrowings . replace_table_token_20_th ( 1 ) weighted average contractual rate as of december 31 , 2015. our contractual obligations expire on or mature at various dates through september 2037. the following table shows all contractual obligations at december 31 , 2015. replace_table_token_21_th we value our portfolio at fair value as determined in good faith by the board of directors in accordance with our valuation policy . unlike certain lending institutions , we are not permitted to establish reserves for loan losses .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our sources of liquidity are the revolving lines of credit with dz bank and with a variety of local and regional banking institutions , unfunded commitments to sell debentures to the sba , loan amortization and prepayments , private issuances of debt securities , and participations or sales of loans to third parties . as a ric , we are required to distribute at least 90 % of our investment company taxable income ; consequently , we have primarily relied upon external sources of funds to finance growth . trust iii 's $ 135,000,000 secured revolving line of credit with dz bank had $ 5,482,000 of availability , $ 11,568,000 was available under revolving credit agreements with commercial banks , and there were $ 3,000,000 unfunded commitments from sba . additionally , medallion bank , our wholly-owned , unconsolidated portfolio company has access to independent sources of funds for our business originated there , primarily through brokered certificates of deposit . at the current required capital levels , it is expected , although there can be no guarantee , that deposits of approximately $ 7,500,000 could be raised by medallion bank to fund future loan origination activities , and medallion bank also has $ 25,000,000 available under fed funds lines with several commercial banks . in addition , medallion bank , as a non-ric subsidiary of ours , is allowed to retain all earnings in the business to fund future growth . the components of our debt were as follows at december 31 , 2015. see note 4 to the consolidated financial statements on page f-18 for details of the contractual terms of our borrowings . replace_table_token_20_th ( 1 ) weighted average contractual rate as of december 31 , 2015. our contractual obligations expire on or mature at various dates through september 2037. the following table shows all contractual obligations at december 31 , 2015. replace_table_token_21_th we value our portfolio at fair value as determined in good faith by the board of directors in accordance with our valuation policy . unlike certain lending institutions , we are not permitted to establish reserves for loan losses .
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 Suspicious Activity Report : these investments may be venture capital style investments which may not be fully collateralized . medallion capital 's investments are typically in the form of secured debt instruments with fixed interest rates accompanied by membership interests and or warrants to purchase an equity interest for a nominal exercise price ( such warrants are included in equity investments on the consolidated balance sheets ) . interest income is earned on the debt instruments . we are a closed-end , management investment company under the 1940 act . we have elected to be treated as a bdc under the 1940 act . we have also elected to be treated for federal income tax purposes as a ric under subchapter m of the code . as a ric , we generally do not have to pay corporate-level federal income taxes on any net ordinary income or capital gains that we distribute to our shareholders as distributions if we meet certain source-of-income and asset diversification requirements . medallion bank is not a ric and must pay corporate-level us federal and state income taxes . our wholly-owned portfolio company , medallion bank , is a bank regulated by the fdic and the utah department of financial institutions which originates taxicab medallion , commercial , and consumer loans , raises deposits , and conducts other banking activities . medallion bank generally provides us with our lowest cost of funds which it raises through bank certificates of deposit issued to its customers . to take advantage of this low cost of funds , we refer a portion of our taxicab medallion and commercial loans to medallion bank , which then originates these loans . however , the fdic restricts the amount of taxicab medallion loans that medallion bank may finance to three times tier 1 capital , or $ 485,814,000 as of december 31 , 2015. we earn referral fees for these activities . all of these servicing activities have been assigned to msc . as a non-investment company , medallion bank is not consolidated with the company . realized gains or losses on investments are recognized when the investments are sold or written off . the realized gains or losses represent the difference between the proceeds received from the disposition of portfolio assets , if any , and the cost of such portfolio assets . in addition , changes in unrealized appreciation or depreciation on investments are recorded and represent the net change in the estimated fair values of the portfolio assets at the end of the period as compared with their estimated fair values at the beginning of the period . generally , realized gains ( losses ) on investments and changes in unrealized appreciation ( depreciation ) on investments are inversely related . when an appreciated asset is sold to realize a gain , a decrease in the previously recorded unrealized appreciation occurs . conversely , when a loss previously recorded as unrealized depreciation is realized by the sale or other disposition of a depreciated portfolio asset , the reclassification of the loss from unrealized to realized causes a decrease in net unrealized depreciation and an increase in realized loss . 41 our investment in medallion bank , as a wholly owned portfolio investment , is also subject to quarterly assessments of fair value . we conduct a thorough valuation analysis as described previously , and determine whether any factors give rise to a valuation different than recorded book value , including various regulatory restrictions that were established at medallion bank 's inception , by the fdic and state of utah , and also by additional marketplace restrictions , such as the ability to transfer industrial bank charters . because of these restrictions and other factors , our board of directors had previously determined that medallion bank had little value beyond its recorded book value . as a result of this valuation process , we had previously used medallion bank 's actual results of operations as the best estimate of changes in fair value , and recorded the results as a component of unrealized appreciation ( depreciation ) on investments . in the second quarter of 2015 , we became aware of external interest in medallion bank and its portfolio assets at values in excess of their book value . we incorporated these new factors in the medallion bank fair value analysis , and the board of directors determined that medallion bank had a fair value in excess of book value . we also engaged a valuation specialist to assist the board of directors in its determination of medallion bank 's fair value , and this appreciation of $ 15,500,000 was thereby recorded in 2015 as a component of unrealized appreciation ( depreciation ) on investments , in addition to medallion bank 's actual results of operations for the year ended december 31 , 2015 . 42 trends in investment portfolio our investment income is driven by the principal amount of and yields on our investment portfolio . to identify trends in the balances and yields , the following table illustrates our investments at fair value , grouped by medallion loans , commercial loans , equity investments , and investment securities , and also presents the portfolio information for medallion bank , at the dates indicated . replace_table_token_11_th ( 1 ) represents the weighted average interest or dividend rate of the respective portfolio as of the date indicated . ( 2 ) the weighted average interest rate for the entire managed loan portfolio ( medallion , commercial , and consumer loans ) was 9.03 % , 8.46 % , and 8.05 % at december 31 , 2015 , 2014 , and 2013 . story_separator_special_tag 48 equity investments equity investments were 1 % of our total portfolio at december 31 , 2015 , 2014 , and 2013. equity investments were less than 1 % , 1 % , and 1 % of our total managed portfolio at december 31 , 2015 , 2014 , and 2013. equity investments are comprised of common stock , warrants , preferred stock , and limited partnership interests . investment securities investment securities were 8 % , 0 % , and 0 % of our total portfolio at december 31 , 2015 , 2014 , and 2013. investment securities were 6 % , 2 % , and 2 % of our total managed portfolio at december 31 , 2015 , 2014 , and 2013. the investment securities are primarily u.s. treasury bills and adjustable-rate mortgage-backed securities purchased by medallion bank to better utilize required cash liquidity . trend in interest expense our interest expense is driven by the interest rates payable on our short-term credit facilities with banks , bank certificates of deposit , fixed-rate , long-term debentures issued to the sba , and other short-term notes payable . we established a medallion lending relationship with dz bank in december 2008 that provides for growth in the portfolio at generally lower rates than under prior facilities . in addition , medallion bank began raising brokered bank certificates of deposit during 2004 , which are at our lowest borrowing costs at december 31 , 2015. as a result of medallion bank raising funds through certificates of deposit as previously noted , we were able to transfer certain of our medallion loans and related assets to medallion bank at the time of the origination of medallion bank allowing us and our subsidiaries to use cash generated through these transactions to retire debt with higher interest rates . in addition , medallion bank is able to bid on these deposits at a wide variety of maturity levels which allows for improved interest rate management strategies . our cost of funds is primarily driven by the rates paid on our various debt instruments and their relative mix , and changes in the levels of average borrowings outstanding . see note 4 to the consolidated financial statements for details on the terms of all outstanding debt . our debentures issued to the sba typically have terms of ten years . we measure our borrowing costs as our aggregate interest expense for all of our interest-bearing liabilities divided by the average amount of such liabilities outstanding during the period . the following table shows the average borrowings and related borrowing costs for the years ended december 31 , 2015 , 2014 , and 2013. our average balances increased during the year reflecting recent portfolio growth and medallion bank 's average balances increased , reflecting the strong growth in the consumer loan portfolio . the decrease in our borrowing costs reflected the adjustable rate nature of much of our borrowings , and changes in our funding mix , and medallion bank 's borrowing costs increased reflecting the lengthening of the maturity profile of its certificates of deposits . replace_table_token_18_th 49 we will continue to seek sba funding to the extent it offers attractive rates . sba financing subjects its recipients to limits on the amount of secured bank debt they may incur . we use sba funding to fund loans that qualify under small business investment act ( sbia ) and sba regulations . we believe that financing operations primarily with short-term floating rate secured bank debt has generally decreased our interest expense , but has also increased our exposure to the risk of increases in market interest rates , which we mitigate with certain interest rate strategies . at december 31 , 2015 , 2014 , and 2013 , short-term adjustable rate debt constituted 75 % , 72 % , and 68 % of total debt , and was 23 % , 22 % , and 22 % on a fully managed basis including the borrowings of medallion bank . factors affecting net assets factors that affect our net assets include net realized gain or loss on investments and change in net unrealized appreciation or depreciation on investments . net realized gain or loss on investments is the difference between the proceeds derived upon sale or foreclosure of a loan or an equity investment and the cost basis of such loan or equity investment . change in net unrealized appreciation or depreciation on investments is the amount , if any , by which our estimate of the fair value of our investment portfolio is above or below the previously established fair value or the cost basis of the portfolio . under the 1940 act , our loan portfolio and other investments must be recorded at fair value . unlike certain lending institutions , we are not permitted to establish reserves for loan losses , but adjust quarterly the valuation of the investment portfolio to reflect our estimate of the current value of the total investment portfolio . since no ready market exists for our investments , fair value is subject to our board of directors ' good faith determination . in determining such fair value , our board of directors considers factors such as the financial condition of our borrowers and the adequacy of their collateral . any change in the fair value of portfolio investments or other investments as determined by our board of directors is reflected in net unrealized depreciation or appreciation on investments and affects net increase in net assets resulting from operations , but has no impact on net investment income or distributable income . our investment in medallion bank , as a wholly-owned portfolio investment , is also subject to quarterly assessments of fair value . we conduct a thorough valuation analysis as described previously , and also receive an opinion regarding the valuation from an independent third party to assist the board of directors in its determination of the fair

