[BWD GROUP LLC LETTERHEAD]

April 7, 2009

Ms. Silvia Mullens
Ameritrans Capital Corp.
747 Third Avenue, 4^th Floor
New York, NY 10017

RE:

Financial Institution Bond Policy
National Union Fire Ins. Co. Pittsburgh, PA
Policy Term: 04/08/2009 to 04/08/2010

Dear Ms. Mullens,

We are pleased to enclose our binder and invoice for the captioned placement. As directed we secured coverage with National Union Fire Ins. Co. Pittsburgh, PA for the annual premium of $6,071.

Should you have any questions or concerns, please feel free to contact this office.

Thank you for placing your most valuable business with BWD Group LLC.

Sincerely,

/s/ Jonathan Maio

Jonathan Maio
Senior Specialist
Management Liability Division

w:\ameritrans\fideltiy bond\2009\binder for edgar.doc

ACORD  INSURANCE BINDER

Date 04/03/09

THIS BINDER IS A TEMPORARAY INSURANCE CONTRACT, SUBJECT TO THECONDITIONS SHOWN ONTHEREVERSE SIDE FO THIS FORM

PRODUCER

PHONE (A/C No. Ext): 516 327-2700

Company National Union Fire Ins. Co Pittsbur

Binder# 106983

FAX (A/C No. Ext): 516 327-2800

BWD Group LLC BWD Plaza, P.O. Box 9050 113 South Service Road Jericho, NY 11753

EFFECTIVE

EXPIRATION

Date

Time

Date

Time

04/08/09

12:01

X

AM PM

04/08/10

12:01

X

12:01AM NOON

CODE:

SUB CODE:

THIS BINDER IS ISSUED TO EXTEND DOVERAGE IN THE ABOVE NAMED COMPANY PER EXPIRING POLICY #:

AGENCY CUSTOMER ID:  2896

INSURED Ameritrans Capital Corp. ELK Associates Funding Corp. 747 Third Avenue, 4th Floor New York, NY 10017

COVERAGES

LIMITS

TYPE OF INSURANCE COVERAGE/FORMS DEDUCTIBLE COINS % AMOUNT

Property Causes of Loss

Basic Broad SPEC

General Liability

Each Occurrence

$

Damage to rented premises

$

Commercial General Liability

Med Exp (Any one person

$

Person & Adv Injury

$

Claims Made Occur

General Aggregate

$

Products – Comp/Op Agg

$

Automobile Liability

Combined Single Limit

$

Any Auto

Bodily Injury (per person)

$

Bodily Injury (per accident)

$

w:\ameritrans\fideltiy bond\2009\binder for edgar.doc

All owned Autos

Property Damage

$

Scheduled Autos

Medical Payments

$

Hired Autos

Personal Injury Prot

$

Non-Owned Autos

Uninsured Motorist

$

Auto Physical Damage

All Vehicles   Scheduled Vehicles

Actual cash value
Deductible

Stated Amount

$

Collision ______

Other than Col: _____

Other

Garage Liability

Auto Only – EA accident

$

Any Auto

Other than auto only

Each Accident

$

Aggregate

$

Excess Liability

Each Occurrence

$

Umbrella Form

Aggregate

$

Other Than Umbrella Form

Retro Date for claims made:

Self-insured retention

$

Worker’s Compensation

WC Statutory Limits

E.L. Each accident

$

E.L. Disease – EA Employee

$

E.L. Disease – Policy Limit

$

Financial Institution Bond

Fees

$

Special Conditions/

Taxes

$

Other coverages

Estimated total Premium

$

Name & Address

Mortgagee  Additional Insured

Loss payee

Loan#

Authorized Representative /s/

w:\ameritrans\fideltiy bond\2009\binder for edgar.doc

SPECIAL CONDITIONS/OTHER COVERAGES (Cont. from page 1)

Ameritrans Capital Corporation

ELK Associates Funding Corporation

Financial Institution Bond Form 24

Insuring Clause & Limit of Liability:

Employee Dishonesty

$750,000

Forgery or Alteration

$750,000

Securities

$750,000

Computer Systems

$750,000

Aggregate Bond Limit;

$750,000

Deductible:

$5,000

Annual Premium:

$6,071

Policy; Fidelity Bond Form 24 inclusive of the following Endorsements;

1.

Forms Index Endorsement

2.

Unauthorized Signatures ($1MM limit/$25k retention)

3.

ERISA Rider

4.

Amend Fidelity Agreement A

5.

New York Statutory Rider

6.

Coverage Territory Endorsement (OFAC) Endorsement

w:\ameritrans\fideltiy bond\2009\binder for edgar.doc