The Bank leases its main office from a related party under a five -year renewable lease. During 2013 and 2012, $ 277, 000 and $ 324, 000, respectively, was paid to the related party for rent, taxes and maintenance charges.  The Bank receives network and computer support services from a related party. In addition, the Bank also purchases computer equipment and software. Total payments to this related party in 2013 and 2012 were $ 184, 000 and $ 142, 000, respectively.  During 2013,  the Bank renovated a recently acquired building to serve as its corporate headquarters. A Director of the Bank is affiliated with the general contractor and electrical contractor that performed the renovations. Total amounts paid to the general and electrical contractors were $ 1, 517, 000 and $ 66, 000, respectively.  The Bank is a party to financial instruments with off -  balance sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and letters of credit. Such commitments involve,  to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets.  The Bank’ s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments.  The Bank uses the same credit policies in making commitments and conditional obligations as it does for on- balance sheet instruments. The amount of collateral obtained, if deemed necessary, is based on our credit evaluation of the counter - party. Collateral held varies but may include cash, accounts receivable, inventory, equipment and real estate.  The following financial instruments were outstanding whose contract amounts represent credit risk as of December 31, 2013 and 2012 ( in thousands):  Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Bank evaluates each customer’ s credit worthiness on a case -by -case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’ s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment.  31 2013 2012 Commitments to grant loans $  6, 416 $  3, 817 Unfunded commitments under lines of credit 63, 485 49, 215 Letters of credit 6, 071 5, 853 75, 972 $  58, 885 11. Financial Instruments with Off -  Balance Sheet Risk