CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

6 Months Ended

Mar. 31, 2012

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS [Abstract]

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

NOTE 16 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

In the ordinary course of its business operations, the Company has ongoing relationships with several related entities.  The following table details the receivables and payables with these related parties (in thousands):

	March 31,		September 30,
	2012		2011
Receivables from managed entities and related parties, net:
Commercial finance investment entities (1)	$	25,241	$	29,725
Real estate investment entities (2)		20,208		19,796
Financial fund management investment entities		2,884		2,652
RSO		2,906		2,539
Other		90		103
Receivables from managed entities and related parties	$	51,329	$	54,815
Payables due to managed entities and related parties, net:
Real estate investment entities	$	1,278	$	1,010
RSO		33		222
Payables to managed entities and related parties	$	1,311	$	1,232

(1) Reflects $13.2 million of reserves for credit losses related to management fees owed from three commercial finance investment entities that, based on a change in estimated cash distributions, are not expected to be collectible.

(2) Reflects $2.4 million of reserves for credit losses related to management fees owed from two real estate investment entities that, based on projected cash flows, are not expected to be collectible.

The Company receives fees, dividends and reimbursed expenses from several related/managed entities.  In addition, the Company reimburses another related entity for certain operating expenses.  The following table details those activities (in thousands):

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
Fees from unconsolidated investment entities (1) :
Real Estate (2)	$	4,689		$	3,096		$	8,457		$	6,156
Financial Fund Management		853			891			1,703			2,485
RSO:
Management, incentive and servicing fees		3,510			2,388			7,340			6,298
Dividends received		505			612			1,136			1,223
Reimbursement of expenses		892			553			1,597			1,021
Resource Real Estate Opportunity REIT, Inc. - reimbursement of costs and expenses		530			535			635			968
Atlas Energy, L.P.- reimbursement of net costs and expenses		149			420			318			610
LEAF:
Reimbursement of net costs and expenses		82			−			142			−
Payment for rent and related expenses		(184	)		−			(304	)		−
Payment for sub-servicing the lease investment partnerships		(706	)		−			(1,111	)		−
1845 Walnut Associates Ltd- payment of rent and operating expenses		(208	)		(209	)		(314	)		(370	)
Graphic Images, LLC- payment for printing services		(94	)		(30	)		(102	)		(35	)
9 Henmar LLC- payment of broker/consulting fees		(4	)		(5	)		(22	)		(26	)
Ledgewood P.C. - payment for legal services		(114	)		(93	)		(269	)		(134	)
The Bancorp, Inc. - reimbursement of net costs and expenses		29			−			74			−

(1) During the three and six months ended March 31, 2012, the Company waived $1.2 million and $2.7 million, respectively, and $2.1 million and $4.5 million during the three and six months ended March 31, 2011, respectively, of its fund management fees from its commercial finance investment entities..

(2) Reflects discounts recorded by the Company of $52,000 and $128,000 recorded in the three and six months ended March 31, 2012, respectively, and $77,000 and $190,000 for the three and six months ended March 31, 2011, respectively, in connection with management fees from its real estate investment entities that it expects to receive in future periods

Relationship with RSO.  In March, 2012, the Company entered into an amendment to its management agreement with RSO in order to provide RSO with a sufficient number of accounting professionals dedicated to RSO's operations.  The number of accounting professionals and amounts charged for them by the Company is reviewed and approved by RSO's Board of Directors.

Relationship with LEAF.  The Company maintains a shared service agreement with LEAF for the reimbursement of various costs and expenses it incurs on behalf of LEAF.  In addition, the Company subleases office space in Philadelphia, Pennsylvania from LEAF under a lease that expires in August 2013.

Sub-servicing agreement with LEAF for the commercial finance funds.  The Company entered into a sub-servicing agreement with LEAF to provide management services for the commercial finance funds.  The fee is equal to LEAF's costs to provide these services up to a maximum of 1% of the net present value of all lease and loan contracts comprising each of the commercial finance fund's respective borrowing base under such commercial finance fund's credit facilities or securitizations.  In addition, LEAF is entitled to an evaluation fee equal to one half of any acquisition or similar fee collected by the Company in connection with the acquisition of any new lease or loan contracts for which LEAF provides evaluation services.