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 December 31, 2011:
Receivables from managed entities and related parties: (1)
Commercial finance investment entities	$	−	$	−	$	37,801	$	37,801	$	271	$	38,072
Real estate investment entities		1,176		1,683		14,282		17,141		5,309		22,450
Financial fund management entities		119		218		28		365		2,360		2,725
RCC		1,855		−		−		1,855		1,561		3,416
Other		−		−		−		−		260		260
		3,150		1,901		52,111		57,162		9,761		66,923
Rent receivables – real estate		1		14		15		30		12		42
Total financing receivables	$	3,151	$	1,915	$	52,126	$	57,192	$	9,773	$	66,965

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
RCC		−		−		−		−		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 December 31, 2011, receivables related to the Company's commercial finance and real estate investment entities are presented gross of allowances for credit losses of $10.3 million and $2.3 million, respectively. The remaining receivables have no related allowance for credit losses.

(2)

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

The following table summarizes the Company's financing receivables on nonaccrual status (in thousands):

	December 31,		September 30,
	2011		2011
Investments in commercial finance:
Leases and loans	$	−	$	526

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

Three Months Ended December 31, 2011:	Receivables from Managed Entities		Investment in Commercial Finance -Leases and Loans			Rent Receivables		Total
Balance, beginning of year	$	10,490	$	430		$	15	$	10,935
Provision for credit losses		2,085		151			14		2,250
Charge-offs		−		(124	)		−		(124	)
Recoveries		−		25			−		25
Deconsolidation of LEAF		−		(482	)		−		(482	)
Balance, end of period	$	12,575	$	−		$	29	$	12,604

Ending balance, individually evaluated for impairment	$	12,575	$	−		$	29	$	12,604
Ending balance, collectively evaluated for impairment		−		−			−		−
Balance, end of period	$	12,575	$	−		$	29	$	12,604

			Investments in Commercial Finance
Three Months Ended December 31, 2010:	Receivables from Managed Entities		Leases and Loans			Future Payment Card Receivables			Investment in Real Estate Loans			Total
Balance, beginning of year	$	1,075	$	770		$	130		$	49		$	2,024
Provision for credit losses		1,411		183			12			−			1,606
Charge-offs		−		(1,000	)		(26	)		(49	)		(1,075	)
Recoveries		−		127			14			−			141
Balance, end of period	$	2,486	$	80			130		$	−		$	2,696

Ending balance, individually evaluated for impairment	$	2,486	$	−		$	−		$	−		$	2,486
Ending balance, collectively evaluated for impairment		−		80			130			−			210
Balance, end of period	$	2,486	$	80		$	130		$	−		$	2,696

The Company's gross financing receivables related to the balance in the allowance for credit losses as of December 31, 2011 are as follows (in thousands):

	Receivables from Managed Entities		Rent Receivables		Total
Ending balance, individually evaluated for impairment	$	66,923	$	42	$	66,965
Ending balance, collectively evaluated for impairment		−		−		−
Balance, end of period	$	66,923	$	42	$	66,965

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 December 31, 2011:
Financing receivables without a specific valuation allowance:
Receivables from managed entities – commercial finance	$	−	$	−	$	−	$	−
Receivables from managed entities – real estate		−		−		−		−
Rent receivables – real estate		−		−		−		−

Financing receivables with a specific valuation allowance:
Receivables from managed entities – commercial finance	$	27,713	$	38,020	$	10,307	$	38,184
Receivables from managed entities – real estate		2,063		4,331		2,268		4,059
Rent receivables – real estate		13		42		29		34

Total:
Receivables from managed entities – commercial finance	$	27,713	$	38,020	$	10,307	$	38,184
Receivables from managed entities – real estate		2,063		4,331		2,268		4,059
Rent receivables – real estate		13		42		29		34

As of September 30, 2011:
Financing receivables without a specific valuation allowance:
Receivables from managed entities – commercial finance	$	−	$	−	$	−	$	−
Receivables from managed entities – real estate		−		−		−		−
Leases and loans		−		−		−		−
Rent receivables – real estate		−		−		−		−

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

Total:
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