CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

3 Months Ended

Dec. 31, 2011

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):

	December 31,		September 30,
	2011		2011
Receivables from managed entities and related parties, net:
Commercial finance investment entities (1)	$	27,765	$	29,725
Real estate investment entities (2)		20,182		19,796
Financial fund management investment entities		2,725		2,652
RCC		3,416		2,539
LEAF		101		−
Other		159		103
Receivables from managed entities and related parties	$	54,348	$	54,815
Payables due to managed entities and related parties, net:
Real estate investment entities	$	241	$	1,010
RCC		34		222
Payables to managed entities and related parties	$	275	$	1,232

(1) Reflects $10.3 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 $2.3 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
	December 31,
	2011			2010
Fees from unconsolidated investment entities:
Real estate(1)	$	3,768		$	3,060
Financial fund management		850			1,594
Commercial finance (2)		−			−
RCC:
Management, incentive and servicing fees		3,830			3,910
Dividends		631			611
Reimbursement of costs and expenses		705			468
Resource Real Estate Opportunity REIT, Inc. – reimbursement of costs and expenses		105			443
Atlas Energy, L.P.– reimbursement of net costs and expenses		169			190
LEAF:
Reimbursement of net costs and expenses		60			−
Payment for rent and related costs		(120	)		−
Payment for sub-servicing the lease investment partnerships		(405	)		−
1845 Walnut Associates Ltd. – payment for rent and operating expenses		(106	)		(161	)
Ledgewood P.C. – payment for legal services		(155	)		(41	)
Graphic Images, LLC – payment for printing services		(8	)		(5	)
9 Henmar LLC – payment for broker/consulting fees		(18	)		(21	)
The Bancorp, Inc. – reimbursement of net costs and expenses		45			−

(1) Reflects discounts recorded by the Company of $76,000 and $113,000 recorded in the three months ended December 31, 2011 and 2010, respectively, in connection with management fees from its real estate investment entities that it expects to receive in future periods.

(2) During the three months ended December 31, 2011 and 2010, the Company waived $1.5 million and $2.4 million, respectively, of its fund management fees from its commercial finance investment entities, respectively.

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 funds respective borrowing bases under such commercial finance funds' 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.