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## NOTE 8.L OANS RECEIVABLE 

The following table summarizes the loans receivable from Värmevärden, MLTCLPand Chapais: 

<img src='content_image/269024.jpg'>

Accrued interest on the loans receivable in the amount of $113 for the year ended December 31, 2013 is included in accounts receivable (December 31, 2012 – $63). 

The estimated fair values of the loans receivable as at December 31, 2013 and 2012 approximate the carrying values. 

## Värmevärden 

The following table summarizes thechange inthe loan receivable from Värmevärden during theyears ended: 

<img src='content_image/269028.jpg'>

During the first quarter of 2012, Värmevärden’s parent company, Sefyr Värme AB, in which Capstone holds a 33.3% indirect investment, completed an approximately $150,000 (1,000,000 SEK) offering of senior secured bonds to select institutional investors. The bonds have afive-year term, are r non-amortizing and have a coupon of 7.0%. 

Proceeds from the bond issuance were distributed to the owners of Sefyr Värme AB, with Capstone receiving approximately$49,400, which was used to repay a portion of the senior credit facility. The distribution of $49,400 was comprised of a $48,100 shareholder loan repayment and a payment of $1,300 of accrued interest. Refer to note 19 (Long-term debt). 

In March 2012, theshareholder loan receivable from Värmevärden was amended including the annual interest rate which became 7.944%. 

## Chapais 

Expected repayments of the Chapais loanreceivable for the next five years and thereafterwere as follows: 

<img src='content_image/269033.jpg'>

## NOTE 9. FINANCIAL INSTRUMENTS 

## (A) Fair Value of Financial Instruments 

Financial instruments consist of cash and cash equivalents, restricted cash, short-term deposits, accounts receivable, loans receivable, accounts payable and other liabilities, finance lease obligations, long-term debt, interest rate swap contracts and foreign currency contracts. The Corporation also has embedded derivatives on one of its commodity contracts. 

