Finance Leases Receivable

9 Months Ended

Sep. 30, 2018

Finance Leases Receivable [Abstract]

2. Finance Leases Receivable

During the third quarter of 2018, a customer that leased six of the Company's aircraft under sales-type finance leases purchased three of those aircraft in amounts equal to the outstanding balance under the applicable finance leases. The purchase price was paid in the form of (i) $1,088,700 in cash, (ii) $1,675,100 of maintenance reserves previously paid to the Company for one of the purchased aircraft and (iii) $2,618,100 of maintenance reserves previously paid to the Company for two aircraft that remain under sales-type finance leases with the customer. Such reserves are no longer available to the customer for reimbursement of maintenance claims under the applicable lease provisions pursuant to which the reserves were paid. The Company did not record a gain or loss on the sale of the aircraft.

At September 30, 2018 and December 31, 2017, the net investment included in finance leases and direct financing leases receivable were as follows:

	September 30, 2018			December 31, 2017
Gross minimum lease payments receivable	$	18,160,700		$	27,074,400
Less unearned interest		(2,105,200	)		(3,513,400	)
Finance leases receivable	$	16,055,500		$	23,561,000

As of September 30, 2018, minimum future payments receivable under finance leases were as follows:

Years ending

Remainder of 2018	$	1,891,500
2019		4,047,600
2020		4,208,600
2021		4,805,000
2022		3,208,000
	$	18,160,700