NOTE 4 – FINANCING RECEIVABLES

The disclosures in this footnote are required per new guidance issued by the FASB that requires companies to provide more information about the credit quality of their financing receivables including, but not limited to, significant purchases and sales of financing receivables, aging information and credit quality indicators.

The following table is the aging of the Company's past due financing receivables (presented gross of allowance for credit losses) as of June 30, 2011 (in thousands):

	30-89 days past due		Greater than 90 days		Greater than 181 days		Total past due		Current		Total
Receivables from managed entities and related parties: (1)
Commercial finance investment entities	$	−	$	−	$	37,721	$	37,721	$	184	$	37,905
Real estate investment entities		1,211		1,357		18,052		20,620		576		21,196
Financial fund management entities		−		−		−		−		2,772		2,772
RCC		−		−		−		−		2,344		2,344
Other		−		−		−		−		631		631
		1,211		1,357		55,773		58,341		6,507		64,848
Investments in commercial finance:
Leases and loans		1,155		347		−		1,502		163,869		165,371
Future payment card receivables		−		−		96		96		−		96
		1,155		347		96		1,598		163,869		165,467
Total financing receivables	$	2,366	$	1,704	$	55,869	$	59,939	$	170,376	$	230,315

(1)	The receivables are presented gross of an allowance for credit losses: commercial finance investment entities ($7.0 million) and the receivable from real estate ($871,000). 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 as of June 30, 2011 and September 30, 2010 (in thousands):

	June 30,		September 30,
	2011		2010
Investments in commercial finance:
Leases and loans	$	347	$	930
Future payment credit receivables		96		316
Investments in real estate - loans		−		49
Total	$	443	$	1,295

The following table provides information about the credit quality of the Company's commercial finance assets as of June 30, 2011 (in thousands):

	Leases		Future payment
	and loans		card receivables		Total
Performing	$	165,024	$	−	$	165,024
Nonperforming		347		96		443
Total	$	165,371	$	96	$	165,467

The following table summarizes the activity in the allowance for credit losses for all financing receivables for the Company for the three and nine months ended June 30, 2011 (in thousands):

			Investments in commercial finance
	Receivables from managed entities		Leases and loans			Future payment card receivables			Investment in real estate loans			Total
Three Months Ended June 30, 2011:
Balance, beginning of period	$	4,740	$	300		$	130		$	−		$	5,170
Provision for credit losses		3,162		308			6			−			3,476
Charge-offs		−		(300	)		(48	)		−			(348	)
Recoveries		−		92			2			−			94
Balance, end of period	$	7,902	$	400		$	90		$	−		$	8,392


Nine Months Ended June 30, 2011:
Balance, beginning of year	$	1,075	$	770		$	130		$	49		$	2,024
Provision for credit losses		6,827		848			126			−			7,801
Charge-offs		−		(1,478	)		(190	)		(49	)		(1,717	)
Recoveries		−		260			24			−			284
Balance, end of period	$	7,902	$	400		$	90		$	−		$	8,392

Ending balance, individually evaluated for impairment	$	7,902	$	−		$	−		$	−		$	7,902
Ending balance, collectively evaluated for impairment		−		400			90			−			490
Balance, end of period	$	7,902	$	400		$	90		$	−		$	8,392

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

			Investments in commercial finance
	Receivables from managed entities		Leases and loans		Future payment card receivables		Total
Ending balance, individually evaluated for impairment	$	26,687	$	−	$	−	$	26,687
Ending balance, collectively evaluated for impairment		−		347		96		443
Balance, end of period	$	26,687	$	347	$	96	$	27,130

The following table summarizes the activity in the allowance for credit losses for all financing receivables for the Company for the three and nine months ended June 30, 2010 (in thousands):

						Investments in commercial finance
	Receivables from managed entities		Investment in loans			Leases and loans			Future payment card receivables			Investment in real estate loans		Total
Three Months Ended June 30, 2010:
Balance, beginning of period	$	−	$	−		$	360		$	130		$	1,634	$	2,124
Provision for credit losses		777		−			590			61			−		1,428
Charge-offs		−		−			(158	)		(63	)		−		(221	)
Recoveries		−		−			28			2			−		30
Balance, end of period	$	777	$	−		$	820		$	130		$	1,634	$	3,361

Nine Months Ended June 30, 2010:
Balance, beginning of year	$	−	$	−		$	570		$	2,640		$	1,585	$	4,795
Provision for credit losses		777		1			2,273			314			49		3,414
Charge-offs		−		(1	)		(2,077	)		(2,842	)		−		(4,920	)
Recoveries		−		−			54			18			−		72
Balance, end of period	$	777	$	−		$	820		$	130		$	1,634	$	3,361

The following table discloses information about the Company's impaired financing receivables as of June 30, 2011 (in thousands):

	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
Financing receivables without a specific valuation allowance:
Receivables from managed entities – commercial finance	$	−	$	−	$	−	$	−
Receivables from managed entities – real estate		2,614		2,614		−		2,485
Leases and loans		−		−		−		−
Future payment card receivables		−		−		−		−

Financing receivables with a specific valuation allowance:
Receivables from managed entities – commercial finance		16,171		23,202		7,031		23,507
Receivables from managed entities – real estate		871		871		871		823
Leases and loans		143		347		204		419
Future payment card receivables		6		96		90		204

Total:
Receivables from managed entities – commercial finance		16,171		23,202		7,031		23,507
Receivables from managed entities – real estate		3,485		3,485		871		3,308
Leases and loans		143		347		204		419
Future payment card receivables		6		96		90		204