NOTE 4 - FINANCING RECEIVABLES

The following tables reflect the aging of the Company's past due financing receivables, gross of allowances for credit losses (1) (in thousands):

	30-89 Days Past Due		Greater Than 90 Days		Greater Than 181 Days		Total Past Due		Current		Total
As of March 31, 2012:
Receivables from managed entities and related parties: (1)
Commercial finance investment entities	$	−	$	−	$	38,193	$	38,193	$	221	$	38,414
Real estate investment entities		1,065		1,653		18,139		20,857		1,716		22,573
Financial fund management entities		146		45		85		276		2,608		2,884
RSO		1,449		−		−		1,449		1,457		2,906
Other		−		−		−		−		90		90
		2,660		1,698		56,417		60,775		6,092		66,867
Rent receivables - real estate		7		5		29		41		15		56
Total financing receivables	$	2,667	$	1,703	$	56,446	$	60,816	$	6,107	$	66,923

As of September 30, 2011:
Receivables from managed entities and related parties: (2)
Commercial finance investment entities	$	−	$	−	$	37,547	$	37,547	$	490	$	38,037
Real estate investment entities		1,324		1,511		17,405		20,240		1,734		21,974
Financial fund management entities		2,395		93		28		2,516		136		2,652
RSO		−		−		−		−		2,539		2,539
Other		−		−		−		−		103		103
		3,719		1,604		54,980		60,303		5,002		65,305
Investments in commercial finance		984		526		−		1,510		190,932		192,442
Rent receivables - real estate		1		11		−		12		3		15
Total financing receivables	$	4,704	$	2,141	$	54,980	$	61,825	$	195,937	$	257,762

(1)

As of March 31, 2012, receivables related to the Company's commercial finance and real estate investment entities are presented gross of allowances for credit losses of $13.2 million and $2.4 million, respectively. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

(2)

As of September 30, 2011, receivables related to the Company's commercial finance and real estate investment entities are presented gross of an allowance for credit losses of $8.3 million and $2.2 million, respectively. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

The following tables summarize the activity in the allowance for credit losses for the Company's financing receivables (in thousands):

	Receivables from Managed Entities		Investments in Commercial Finance-Leases and Loans			Rent Receivables		Total
Three Months Ended March 31, 2012:
Balance, beginning of period	$	12,575	$	−		$	29	$	12,604
Provision for credit losses		2,963		(6	)		5		2,962
Charge-offs		−		−			−		−
Recoveries		−		6			−		6
Balance, end of period	$	15,538	$	−		$	34	$	15,572

Six Months Ended March 31, 2012:
Balance, beginning of year	$	10,490	$	430		$	15	$	10,935
Provision for credit losses		5,048		145			19		5,212
Charge-offs		−		(124	)		−		(124	)
Recoveries		−		31			−		31
Deconsolidation of LEAF		−		(482	)		−		(482	)
Balance, end of period	$	15,538	$	−		$	34	$	15,572

Ending balance, individually evaluated for impairment	$	15,538	$	−		$	34	$	15,572
Ending balance, collectively evaluated for impairment		−		−			−		−
Balance, end of period	$	15,538	$	−		$	34	$	15,572

			Investments in Commercial Finance
	Receivables from Managed Entities		Leases and Loans			Future Payment Card Receivables			Investments in Real Estate Loans			Total
Three Months Ended March 31, 2011:
Balance, beginning of year	$	2,486	$	80		$	130		$	−		$	2,696
Provision for credit losses		2,254		357			108			−			2,719
Charge-offs		−		(178	)		(116	)		−			(294	)
Recoveries		−		41			8			−			49
Balance, end of period	$	4,740	$	300		$	130		$	−		$	5,170

Six Months Ended March 31, 2011:
Balance, beginning of year	$	1,075	$	770		$	130		$	49		$	2,024
Provision for credit losses		3,665		540			120			−			4,325
Charge-offs		−		(1,178	)		(142	)		(49	)		(1,369	)
Recoveries		−		168			22			−			190
Balance, end of period	$	4,740	$	300		$	130		$	−		$	5,170

Ending balance, individually evaluated for impairment	$	4,740	$	−		$	−		$	−		$	4,740
Ending balance, collectively evaluated for impairment		−		300			130			−			430
Balance, end of period	$	4,740	$	300		$	130		$	−		$	5,170

The Company's gross financing receivables relate to the balance in the allowance for credit losses as of March 31, 2012 as follows (in thousands):

	Receivables from Managed Entities		Rent Receivables		Total
Ending balance, individually evaluated for impairment	$	66,867	$	56	$	66,923
Ending balance, collectively evaluated for impairment		−		−		−
Balance, end of period	$	66,867	$	56	$	66,923

The Company's financing receivables (presented exclusive of any allowance for credit losses) as of September 30, 2011 relate to the balance in the allowance for credit losses, as follows (in thousands):

	Receivables from Managed Entities		Rent Receivables		Leases and Loans		Total
Ending balance, individually evaluated for impairment	$	65,305	$	15	$	−	$	65,320
Ending balance, collectively evaluated for impairment		−		−		192,442		192,442
Balance, end of year	$	65,305	$	15	$	192,442	$	257,762

The following tables disclose information about the Company's impaired financing receivables (in thousands):

	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
As of March 31, 2012:

Financing receivables with a specific valuation allowance:
Receivables from managed entities - commercial finance	$	24,945	$	38,117	$	13,172	$	38,081
Receivables from managed entities - real estate		2,067		4,433		2,366		4,212
Rent receivables - real estate		22		56		34		41

As of September 30, 2011:

Financing receivables with a specific valuation allowance:
Receivables from managed entities - commercial finance	$	14,990	$	23,302	$	8,312	$	23,377
Receivables from managed entities - real estate		2,353		4,531		2,178		3,897
Leases and loans		310		526		216		318
Rent receivables - real estate		−		15		15		7

The Company has no impaired financing receivables without a specific valuation allowance as of March 31, 2012 and September 30, 2011.