NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (B)  Income and Expenses From Financial Instruments NOTE 10. FINANCIAL RISK MANAGEMENT (A)  Market Risk Dec 31, 2013 Dec 31, 2012 Financial instruments designated as held-for-trading: Interest income on cash and cash equivalents, restricted cash and short-term deposits  (2) 739 962 Financial instruments classified as held-for-trading: Unrealized loss on foreign currency contracts (1,474) (975) Unrealized gain (loss) on interest rate swap contracts 6,648 (100) Unrealized loss on embedded derivative asset (294) (152) Unrealized gain on embedded derivative liability 6,658 3,832 11,538 2,605 Realized gain on derivative financial instruments 295 — Loans and receivables$^{(1)}$: Interest income from loans receivable  (2) 3,357 3,924 Other liabilities: Interest expense on finance lease obligations (46) (226) Interest expense on long-term debt with maturities under 12 months — (4,978) Interest expense on long-term debt (3) tt (47,425) (43,964) (47,471) (49,168) (1) Foreign exchange gains and losses on loans receivable are also recognized in the statement of income as disclosed in note 8. (2) Interest income for 2013 of $4,096 (2012 – $4,886) includes interest income from loans receivable, short-term deposits and cash balances. (3) Interest expense on the long-term debt for 2013 includes amortization of deferred financing fees of $2,069 (2012 – $1,965). The Corporation's normal operating, investing and financing activities expose it to a variety of financial risks, including market risk (including commodity price risk, interest rate and inflation risk, and foreign currency risk), credit risk, economic dependence and liquidity risk. The Corporation's  overall risk management process is designed to identify, manage and mitigate business risk, which includes, among others, financial risk.  Market risk is the risk or uncertainty arising from possible price movements and their impact on the future performance of the business. The  Corporation is exposed to gas and power prices (commodity price risk), interest rates, foreign currency exchange rates and other indices that could  adversely affect the value of the Corporation's financial assets, liabilities or expected future cash flows. Cardinal's gas purchase agreement mitigates Cardinal's risk to exposure to changes in the market price of gas. This agreement expires on May 1, 2015. Upon expiry of the agreement, Cardinal may choose to renegotiate the agreement or enter into a new agreement, and may not be able to do so on terms that are similar to the existing agreement, if at all, or buy gas at spot rates. The majority of the electricity that is generated at the power facilities is sold to large utilities or creditworthy customers under fixed long-term PPAs providing a specified rate for a defined period of time. The excess power capacity of Whitecourt may be sold in the open market exposing certain assets to fluctuations in energy prices. Bristol Water is exposed to risk in prices for materials and services used in its treatment processes, including for chemicals and electricity. Risk is minimized through actively monitoring the market and by the use of fixed price supply contracts extending over more than one year where  considered appropriate. Interest rate risk arises as changes in market interest rates affect the Corporation's future payments on debt obligations. The Corporation is exposed  to interest rate risk on its floating rate debt. Currently, the Corporation has interest rate swap contracts to mitigate some of the risks associated with  its long-term debt. Interest rate and inflation risk Commodity price risk The interest rate swap contracts at Bristol Water have been designated for hedge accounting. No other derivative contracts above have been  designated for hedge accounting. Entity Maturity Date Notional Amount Swap Fixed Rate Stamping Fee Effective Interest Rate Amherstburg June 30, 2028 86,680 4.193% 3.13% 7.32% Bristol Water December 7, 2017 £10,000 5.025% — 5.025% The terms of the contracts are as follows: 74 CAPSTONE INFRASTRUCTURE CORPORATION